By Jody Godoy and Lananh Nguyen
Welcome to the world of mergers and acquisitions, where the Federal Trade Commission Chair Lina Khan is making waves by emphasizing the importance of considering antitrust concerns early in the dealmaking process. In a recent address to the Council on Foreign Relations in New York, Khan highlighted the role of increased scrutiny in deterring illegal mergers.
Addressing the skepticism from Wall Street investors, Khan stated, “As a law enforcer, I want people to be thinking about whether their deal is going to violate the law or not, so that’s progress.” She acknowledged that some may find this approach unsettling, especially those solely focused on deal fees and other financial aspects.
Khan’s proactive approach to antitrust enforcement has not been without controversy, with some in the business community expressing concerns about the impact on deal flow. However, Khan remains steadfast in her commitment to upholding competition laws.
Emphasizing the need for more empirical research on the effects of antitrust enforcement on venture capital, Khan is paving the way for a deeper understanding of the complex relationship between regulation and innovation.