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U.S. Federal Trade Commission (FTC) Chair Lina Khan isn\u2019t mincing words in her crusade against big tech companies, training her ire on their even bigger AI goals using a mob metaphor this week. Speaking at TechCrunch\u2019s StrictlyVC conference<\/a> in Washington, D.C on Tuesday, Khan said the number of cases the FTC brings isn\u2019t as important as the type.<\/p>\n \u201cOne thing that\u2019s been important for me is to make sure that we\u2019re actually looking at where we see the biggest harm,\u201d she explained. \u201cWhere do we see players that are systematically driving these illegal behaviors? Being able to go after the \u2018mob boss\u2019 is going to be more effective than going after the henchman at the bottom.\u201d\u00a0<\/p>\n Khan has made waves since being appointed chair of the FTC by President Joe Biden in 2021, recently banning non-compete agreements<\/a> for most employees<\/a> and attempting to block multiple blockbuster mergers and acquisitions.\u00a0<\/p>\n Earlier this year, she put the brakes on what would have been the biggest fashion deal in history: Coach\u2019s $8.5 billion acquisition of Michael Kors. Coach\u2019s parent brand Tapestry<\/a> was in talks to purchase Capri Holdings<\/a>, which owns brands like Michael Kors, Versace and Jimmy Choo, before the FTC sued, arguing the acquisition would crush \u201cdirect head-to-head competition<\/a>.\u201d But big tech has always been Khan\u2019s main focus when it comes to antitrust actions.\u00a0<\/p>\n Last year, the FTC sued Amazon<\/a> in a landmark lawsuit<\/a> accusing the retail giant of using illegal methods to maintain its dominance. Also that year, the FTC hoped to ax Microsoft\u2019s roughly $70 billion purchase of the gaming giant Activision Blizzard<\/a>, but was rejected<\/a> by U.S. District Judge Jacqueline Scott Corley, who said the FTC didn\u2019t prove the deal would hurt competition.<\/p>\n More recently, Khan and the FTC have turned toward AI<\/a>, launching multiple lawsuits against big tech companies, headlined by their recent investigation<\/a> into Microsoft\u2019s $10 billion investment and ongoing relationship with OpenAI, the $80 billion startup behind ChatGPT. Khan said in January she fears the big tech giant may be able to \u201cexert undue influence or gain privileged access in ways that could undermine fair competition\u201d in the AI arms race.<\/p>\n Kahn\u2019s focus on antitrust cases has riled her critics and some investors, with Yale professor Jeffery Sonnenfeld labeling her a \u201ccompetition cop<\/a>\u201d and CNBC\u2019s Jim Cramer claiming she would be a \u201cone-woman wrecking crew for your portfolio<\/a>,\u201d but she isn\u2019t backing down.<\/p>\n Khan argued at TechCrunch\u2019s StrictlyVC conference this week that coddling companies that are considered \u201cnational champions\u201d is the wrong path.<\/p>\n \u201cWe\u2019ve seen that some of the most significant breakthrough innovations have, historically, come from the startups, and the entrepreneurs, and the small guys who are able to just see things differently\u2014see an opening in the market place and really disrupt in ways that disintermediates the big guys or really provides important competitive checks on them,\u201d she said.<\/p>\n The FTC chair referenced key points in history where antitrust legislation has, in her view, boosted competition and led to innovation, including the Eisenhower administration\u2019s 1956 antitrust suit against AT&T\u2019s Bell Labs. Bell Labs was forced to license all its existing telecommunications patents royalty-free after developing a monopoly on the market, a move that increased innovation markedly in the following years, according to multiple studies<\/a>.\u00a0<\/p>\n \u201cWe need to keep those lessons of history in mind as we again choose a path,\u201d Khan said. \u201cWe just need to be very wary of these national champion arguments and really, have faith in open, fair, competitive markets as being what\u2019s going to be the driver of innovation.\u201d<\/p>\n<\/div>\n\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n