Economics: Winning By Losing - How The Biden Administration Is Burning The Money Of Tax Payers Big Time

  (Drivebycuriosity) -  The Biden administration is throwing sand into the gears of well running businesses. Biden protege Lina Khan, chair of the powerful antitrust agency Federal Trade Commission (FTC) & Jonathan Kanter, leader of the Antitrust Division of the Justice Department, another Biden protege, are suing companies whenever these don ´t do what the government likes. 

Fortunately America has courts. Judges finally decide if a company behaves lawful or not. That´s the difference to Xi´s China. Last November the New York Times reported that "under the Biden administration, the Justice Department has sued to block eight mergers and an alliance between American Airlines and JetBlue, while the F.T.C. has filed eight lawsuits challenging corporate mergers" (nytimes ). They lost their cases.

More losses followed this year. Khan´s FTC failed to prevent Meta Platforms` (formerly known a Facebook) to purchase Within Unlimited – a tiny virtual reality (VR) App developer. The Khan also lost a mega lawsuit against Microsoft (theverge ). The Khan tried to stop the software giant to purchase the game designer Activision Blizzard. The Khan claimed that the acquisition "may" harm competition in the future, even though both companies compete against Sony and other companies. Judge Corley disagreed and stated that the merger could even intensify the global competition.

The New York Times is siding with the Khan and tried to explain her bad track record with the motto:"winning by losing". According to the New York Times Khan`s court losses could signal to Congress the need for new antitrust laws.

During a hearing at the House Judiciary Committee members criticized that the FTC is losing the money of tax payers with her failed law suits. Chair Jim Jordan described Khan’s approach with the  antitrust reform as a “disaster” and a “costly” departure from decades of bipartisan consensus ( adlawaccess). And Representative Kevin Kiley described Khan as 0-for-4 record in merger trials in Federal Court and asked her, “Why are you losing so much?…Are you losing on purpose?” 

Congressman Darrel Issa accused Khan of turning the FTC into a bully that would make America less competitive. Citing the failed case against Microsoft, he argued that FTC challenges were undermining American companies that had to compete worldwide. FTC overreach could ultimately end up hurting consumers.

The Khan - unfazed by critic and her court loses - is continuing the costly crusade. The FTC is now suing Amazon, claiming that Amazon Prime is a trap (stratechery twitter. netchoice). The Khan calls Amazon`s Prime practices as "deceptive" and alleges customers have enormous difficulties to sign out ( twitter). Several observers reported - independent from each other - that they were able to cancel Prime in less than 90 seconds (twitter twitter). How long will it take a judge?

According to the media the Khan, who built her career on Amazon harassing ( driveby), is preparing another attack on Amazon ("The Big One"), trying to break up Amazon`s Marketplace, where other companies can sell, and to make Prime illegal (politico realclearmarkets  twitter).

Conclusion: The FTC is not only burning more and more money of the tax payers. The sued companies have enormous costs. Mergers get many months delayed, causing additional costs, and the defendants have to employ armies of expensive lawyers. The consumers are losers too, because they have to bear these costs by paying higher prices and reduced selection of goods & services. Winners are law firms and foreign competitors, like Sony in the Microsoft/Activison case, or Alibaba in the Amazon case.