Cruz and Hawley shut down antitrust exemptions for AI companies

On Sept. 15, 2026 senators Cruz and Hawley introduced bipartisan legislation to end the antitrust exemptions that presently allow AI firms to sidestep typical competition rules. The measure arrives as Congress intensifies scrutiny of AI‑driven technologies and follows a series of high‑profile calls for tighter oversight. By targeting the exemption, the bill seeks to place AI companies under the same antitrust framework that governs other sectors, signaling a shift toward broader regulatory accountability.

Reuters notes that FTC Chair Lina Khan expressed suspicion toward recent calls to preserve the exemption, framing the issue as part of a broader antitrust agenda. Politico details the legislative language that would repeal the carve‑out and require AI firms to submit the same merger and pricing reviews as legacy industries. In parallel, Common Dreams and Gizmodo quote Khan asserting that AI firms must face liability for dangerous, unvetted products and that existing statutes already empower prosecutors to target CEOs. The Register highlights Khan’s reference to a 1934 precedent, urging the government to ‘break out the handcuffs’ for AI executives.

The initiative encounters a legal nuance: Khan’s reminder that current law already permits prosecution of AI CEOs suggests the debate may pivot from drafting new exemptions to enforcing historic antitrust standards, a factor that could shape upcoming Senate hearings.