The most feared woman now, September 14th, 15:01
"She has a prejudice and should be excluded from the investigation." In
July, American "Big Tech" (giant IT company) Amazon and Facebook filed an unusual petition that named the top of government agencies one after another. bottom.
The person that Big Tech is so cautious about is Lina Khan, chairman of the FTC (Federal Trade Commission), which is the Japan Fair Trade Commission.
What exactly is the "most feared woman" aiming for now?
(Washington bureau reporter Yosuke Yoshitake Los Angeles bureau reporter Nana Yamada)
32 years old
There is an eye-catching statue in front of the FTC building in Washington, DC.
A person trying to hold down a rampaging horse.
"We do not allow the monopoly of large corporations with huge power."
It is said that such a meaning is included.
The FTC has strong authority to monitor and regulate the activities of unfair businesses.
Lina Khan, chairman of the organization, took office on June 15.
Born in 1989, 32 years old.
He was the youngest to take office.
Even though it was a country without seniority-based customs, it was exceptional.
FTC sued Facebook on suspicion of violating antitrust law (= Japan's antitrust law), alleging that it hindered fair competition through the acquisition of competitors such as "Instagram."
Amazon is also investigating whether there are any antitrust violations over past acquisitions.
He will take the lead in spearheading these important projects.
The
local media
of "Big Tech Tataki no Kyodo Pou"
has taken up the issue as
a vital
personnel of the Biden administration.
I'm from London, England.
He had parents from Pakistan and moved to the United States at the age of 11.
After graduating from college, 22-year-old Khan chose a think tank, New America, in Washington.
"At the time of the interview, I had a surprisingly high level of intelligence and a passion for concentrating power," said Barry Lin, who decided to hire Khan for the organization.
Kahn said he was devoted to the harmful effects of corporate monopoly and antitrust research and investigation.
Then, in 2017, he published a treatise entitled "Amazon's Competitive Issues" at Yale University, where he was enrolled to deepen his research.
The content attracted public attention as an unprecedented perspective.
He was selected as an investigative member of the House of Representatives, who was exploring how to regulate the enormous Big Tech, and led the compilation of the report.
He built his career up the stairs and was elected FTC chairman under the Biden administration.
What is the problem
What is Khan's goal as chairman of the FTC?
The hint can be seen from the above-mentioned paper.
In "Amazon's Competitive Issues," we analyzed Amazon's strategy, which holds an approximately 40% share of online shopping in the United States.
At that time, services such as free shipping were gaining popularity among consumers, but he pointed out that this was "predatory pricing."
He concluded that he lowered service charges without regard to profitability in order to gain an overwhelming share, dominated the market with the absolute power gained from it, and eliminated small businesses.
"There was no room for resistance."
Douglas Meldesa, who lives in Michigan, started selling sunscreens and other items on the Amazon site seven years ago.
Sales have been strong since the start, and at one point it grew into a business with annual sales of 2.5 billion yen in Japanese yen.
On the other hand, it is expenses such as commissions that Amazon has asked for an increase year by year.
Eventually, the amount paid to Amazon now accounts for half of the sales.
In addition, Amazon purchased the same products that Mr. Meldesa handles in-house and started selling them.
Profit fell sharply and all about 50 employees were dismissed.
I went out of business last year.
"As soon as they decided that it was" enough, "we couldn't resist," he said.
The position of the company
Amazon also has a case for criticism of market power.
Last July, Amazon founder Jeff Bezos claimed that he was in the midst of fierce competition, saying that "Amazon's share is less than 1% of the global retail market and less than 4% in the United States." bottom.
In addition, the company's philosophy is "to be the company that values the most customers on the planet."
The position is that it continues to pursue consumer convenience.
“Help the weak and defeat the strong”
But Kahn claims that Amazon has "escaped from legal surveillance."
At the same time, he points out the limitations of the current antitrust law, which states that consumers are less likely to be subject to regulation if they do something that benefits them.
Mr. Khan
"We will actively detect the movement to prey on the citizens. We should focus on the structure in which large companies continue to generate profits in a powerful manner."
I was impressed by the strong words I had when I attended a committee of the House of Representatives in late July, shortly after taking office.
Mr. Kahn is in a situation where his skill is being questioned.
In June, the court dismissed the FTC's complaint, saying it had "insufficient legal grounds" in the aforementioned Facebook trial.
In August, the FTC reissued an 80-page complaint, nearly 30 pages more than it was originally, and asserted its legitimacy.
The whereabouts of this trial will be a major touchstone for the fight between the FTC and Big Tech, led by Mr. Khan.
Where is the concentration of wealth and power
In a world facing the unprecedented crisis of the new coronavirus, numerous IT services such as online shopping, SNS, video distribution, and online meetings support people's lives.
Ironically, this enhances Big Tech's "one-man win".
Behind the fact that President Biden left the top regulator to Mr. Khan, who has been hard-core for criticizing Big Tech, is aimed at facing the "bias of wealth and power," which can be said to be a major issue in the United States.
The same applies to tax increases for large corporations and wealthy people.
There are criticisms that these methods have been "hijacked by the left", but the Biden administration has reviewed the traditional belief that minimizing regulation and state involvement is the source of growth and reducing disparities. We are aiming for economic management that emphasizes small businesses, workers, and households.
Regarding the examinations and proceedings against Big Tech, not only the stricter examinations of M & A (merger and acquisition) aiming at expansion, but also the possibility of stepping into the basis of the business model such as service reduction and business division is whispered.
What kind of change will Khan's rampaging horse reins make for the country?
Washington Bureau Reporter
Yosuke Yoshitake
Joined NHK
Nagoya
Broadcasting
Station in
2004
After working at the Ministry of Economic Affairs, he is currently affiliated.
Los Angeles bureau reporter
Nana Yamada
Joined in 2009
After working at Nagasaki bureau, economic department, international department, etc., she is currently affiliated from this summer.