Lina Khan, former chair of the Federal Trade Commission (FTC) has now come on board Zohran Mamdani’s transition team. Experts have called this appointment a shot across the bow for private equity firms doing business in New York State. During her short time at the FTC, Khan aggressively challenged private equity “roll ups” and large tech mergers. This put her at the center of on-going battle over monopolistic practices in multiple industries.
Khan’s appointment is timely and appropriate. Younger Democrats, like Mamdani, are calling on the party for a daring new corporate regulation and oversight paradigm. Her place in Mamdani’s transition team should undoubtedly influence how municipal cabinets function. This proposed change would be the most consequential in affecting how private equity firms do business. Experts believe that her expertise will be crucial in compelling these firms to disclose their practices and effects on local economies.
At the FTC, Khan led historic action against private equity and big tech monopolies. She also recently filed an important whistleblower complaint against US Anesthesia Partners and its private equity owners. This move unequivocally establishes her commitment to holding these powerful entities’ feet to the fire. Her mission went further, seeking to challenge anti-competitive schemes that suppress competition and the harms caused by monopolistic behavior on communities and consumers.
Khan’s work has done a lot to raise the alarm on the negative impacts that private equity practices have had on public housing and the healthcare industry. As almost every resident can tell you, these firms have increased rents making housing unaffordable and taken over local healthcare sectors. As Martin Kenney, an expert on the implications of private equity, stated, “They made it a hellhole for the tenants. They played all sorts of shitty little tricks on them, and they eventually moved.”
In addition to her focus on private equity, Khan gained recognition for her role in investigating big tech acquisitions, including the high-profile suit against Meta’s acquisition of WhatsApp and Instagram. Her stated mission at the FTC was to go after practices that she considered “particularly pernicious,” Slate reported.
Khan’s appointment will be largely symbolic in nature, as municipal authorities have a lot less power than their federal counterparts. Indeed, experts contend that her appointment to Mamdani’s team is a sign of things starting to change, bringing more accountability to local levels. Loren Adler noted, “It’s pretty easy to force transparency at the municipal level,” emphasizing the potential for impactful changes in local governance.
Khan worked under President Biden to modify the Hart-Scott-Rodino (HSR) notification thresholds, which could enhance scrutiny over mergers and acquisitions involving large entities. Her tactics are aimed at private equity firms, forcing them to face greater regulatory hurdles. This protects mom-and-pop businesses and fosters positive competition.
With Lina Khan now on Mamdani’s transition team, her fierce anti-monopoly ethos can help transform how municipal authorities deal with private equity firms. “Once you get the FTC investigating, you become more careful,” Kenney remarked regarding the potential deterrent effect of regulatory scrutiny.
The prospects of a Khan appointment have left numerous New Yorkers feeling hopeful. They hope it will restore greater scrutiny over private equity practices that threaten local economies. She has the authority to even require that these firms disclose certain information. This kind of transparency will help them operate better, serving consumers and communities across the city more equitably.