Federal Trade Commission (FTC) Chair Lina Khan joins Jon Stewart to discuss her work with the “small but mighty” government agency in protecting Americans against unfair business practices.

In the interview, Lina Khan provides an in-depth discussion on the FTC's role in combating monopolistic practices and upholding antitrust and consumer protection laws. She emphasizes the challenges faced by the FTC in regulating powerful tech giants like Amazon and Facebook, noting that these companies have vast resources and often resist regulatory oversight. Despite being a relatively small agency, Khan asserts that the FTC leverages its strengths to effectively address these issues.

Khan details the complexities of monopolies, including various forms such as oligopolies, and uses Amazon as a prime example. She explains that Amazon's market power allows it to engage in practices that harm consumers, such as increasing fees for small businesses and cluttering search results with irrelevant ads. The FTC has taken legal action against Amazon, alleging that the company maintains its dominance through illegal means, including its acquisitions of Whole Foods and Ring, which are accused of reducing competition.

The conversation also covers the broader challenges of enforcing antitrust laws against tech giants. Khan highlights the disparity in resources between the FTC and these large corporations, which can afford extensive legal teams and resources. Despite these challenges, the FTC remains committed to its goal of not only imposing fines but also deterring illegal behavior and ensuring corporate accountability.

Khan draws attention to the historical context of industry consolidation and its impact on competition. She discusses how mergers in various sectors, such as airlines, telecom, and meatpacking, have led to fewer competitive options and negative consequences for American communities. This trend underscores the need for vigilant antitrust enforcement to prevent further monopolistic practices.

The discussion then shifts to the emerging field of artificial intelligence (AI). Khan expresses concern about the consolidation of AI technology among a few dominant companies like Apple, Microsoft, and Google. She warns of an "arms race" among these companies to establish monopolies or oligopolies in the AI market. Khan argues for clear and effective regulation to prevent the concentration of power and decision-making in the hands of a few, echoing the historical efforts that led to the Sherman Act of 1890.

Khan concludes by discussing the potential risks and benefits of AI technologies. She emphasizes the importance of using policy tools and regulatory measures to ensure that AI advancements benefit the public and do not result in adverse outcomes. Khan stresses that the future impact of AI is not predetermined and that informed decision-making is crucial to mitigate potential harm and ensure positive outcomes. She expresses her appreciation for the opportunity to address these significant issues and advocate for thoughtful regulation.

Lina M. Khan, born in 1989, is a British-born American legal scholar and the youngest-ever chair of the Federal Trade Commission (FTC), a position she has held since 2021. She is also an associate professor of law at Columbia Law School. Khan gained recognition as a student at Yale Law School for her influential essay "Amazon's Antitrust Paradox," which brought attention to issues in antitrust and competition law in the United States.