September 5, 2022 11:14 am ET
FTC Chairwoman Lena Kahn speaks at a May 18 House Rules Subcommittee hearing in Washington.
Photo:
Al Drago/Bloomberg News
Bravo to your editor, “Lina Khan’s Unification of the Metaverse” (August 30). Readers should be aware that the Federal Trade Commission is trying to unearth “real competition” zombies that have long since been buried by the courts and should remain shrouded in mystery.
40 years ago, I prosecuted the last cases in the Justice Department’s antitrust efforts to stop bank mergers. Those cases represent the policy-driven hope that massive government lawsuits unsupported by law or evidence will scare off private companies unwilling to protracted litigation. Fortunately, many banks were willing to take the pain to establish the law.
At trial, I have seen jurors roll their eyes when the government tries to prove that the target firm would be theoretically disadvantaged if the noncompetitive target firm were acquired by a marketable firm. Competition in the market will harm consumers. true? The government failed to explain its theory in less than 100 words in its pleadings and appearance. That’s all you need to know about actual competition theory.
Also note the irony these new cases represent. Big Tech has upended the universe for the last 25 years, and now its sights are set on the metaverse, and the best the government can do is make the legal theory invalid? It’s time to update antitrust laws to accommodate virtual reality, but there’s a good chance Congress will do just that.
Thomas P. Vartanian
McLean, Va.
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