A source within the Biden-Harris administration recently expressed concern over “deeply corrupt” calls from wealthy Democratic donors for Vice President Kamala Harris to fire Federal Trade Commission (FTC) commissioner Lina Khan if she wins the 2024 election, an action that Presidential nominee Joe Biden has not yet denounced. This follows criticism of Khan by prominent billionaire donors such as venture capitalist Reid Hoffman and media mogul Barry Diller, who have both contributed millions to Harris’ principal campaign committee and associated Political Action Committees (PACs. These donations have been made while the FTC investigates companies in which each man has a financial stake.
The anger directed towards Khan is compounded by her role in investigating companies backed by these wealthy donors, such as Khosla’s five portfolio companies currently under scrutiny. While the exact details of the targeted companies remain unclear, Khan’s FTC portfolio includes well-known corporations like OpenAI and DoorDash. Despite his past criticisms, Khosla has continued to call for Khan’s removal from her position within the FTC.
The source in question criticized these wealthy donors for demanding Khan’s dismissal while simultaneously making large financial contributions to Harris and other political figures within the Democratic Party. This raises questions about potential conflicts of interest and the influence that these donors might have on policy decisions made by Kamala Harris or Joe Biden should either become President.
The situation is further complicated by the fact that both Hoffman and Diller hold positions on the boards of companies currently under investigation by Khan’s FTC, such as Microsoft (where Hoffman sits on the board) and Homeadvisor (owned by Diller’s IAC. This raises questions about the true motivations behind their calls for her removal, with some speculating that it may be an attempt to protect their financial interests in these companies.
Despite these concerns, neither the Harris campaign nor Hoffman has responded to requests for comment on this issue. Meanwhile, Diller expressed regret for his past criticism of Khan but did not back down from his support of her dismissal from the FTC.
This ongoing conflict between Democratic donors and the Biden-Harris administration highlights a growing divide within the party, as it seemingly shifts its stance on big tech companies and corporate interests. While there may be some consensus around the need for antitrust action, the issue at hand appears to be one of loyalty and policy alignment.
Should Kamala Harris become President in 2024, she may face pressure from wealthy donors like Hoffman and Diller to remove Lina Khan from her position at the FTC, a move that could undermine efforts to regulate big tech companies and protect consumers’ interests. As such, it is crucial for both the Democratic Party and its candidates to navigate this complex issue carefully in order to maintain their credibility with the American people.
