FTC Forum Hears Evidence that U.S. Should Follow European Union Privacy Model – BroadbandBreakfast.com

WASHINGTON, September 2, 2021 Federal Trade Commissioner Noah Phillips said at a Hudson Institute webinar on Monday that hes concerned about the direction the competition watchdog is moving toward considering recent events.

Phillips said the left-leaning voices in Washington and the appointment of Lina Khan to chair the agency has left him wondering about the legacy of the last 40 years of competition regulation in America which have been hallmarked by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. That legislation effectively gave the FTC the ability to review mergers and acquisitions before they were finalized, rather than afterward, which governed pre-legislation.

Under Biden-appointee Lina Khan, Phillips described how the FTC has done away with the process of early termination. In the past, this process made it unnecessary for every single company to provide advanced notice and advanced approval for mergers. Historically, parties have been able to come to the agencies and say, Youre not interested in this, can we just go ahead and finish our deal, and the agencies have said yes.

He said this is no longer the case, and that every single merger must provide advanced notice and approval. What were introducing is an inefficiency in the market for transactions that we have no interest in pursuing, just for the sake of it. I think thats a problem, he continued. My concern is that it is making merger enforcement less effective, less efficient, and less fair.

Phillips pointed to left-of-center and leftist voices in Congress, such as Rep. David Cicilline, D-New York, Sen. Elizabeth Warren, D-Massachusetts, and Rep. Alexandria Ocasio-Cortez, D-New York, who, at the outset of the pandemic, wanted to ban all acquisitions and mergersregardless of their merit. He described this view as falling outside of mainstream perspectives, but noteworthy nonetheless.

I dont think that is what most people believe, Phillips remarked. I dont think that is what Hart-Scott-Rodino envisions.

This webinar took place only a couple of weeks after Phillips spoke at the Technology Policy Institutes 2021 Aspen Forum, where he voiced similar concerns, stating that he feared that this new direction would make it more difficult for the FTC to hear cases that it should, and defended the commissions record against critics who said it was lax under the Trump Administration.

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FTC Forum Hears Evidence that U.S. Should Follow European Union Privacy Model - BroadbandBreakfast.com

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