Cruz and Hawley shut down antitrust exemptions for AI companies

The timing follows a wave of regulatory scrutiny over AI products and aligns with broader bipartisan concerns about market power in emerging technologies. Their proposal marks a direct challenge to the status quo and seeks to place AI firms under the same competition rules as other industries. Coverage across multiple outlets details the push. Reuters notes the FTC chair’s suspicion of calls for AI antitrust exemptions, while Common Dreams reports Lina Khan’s assertion that AI firms must face liability for dangerous, unvetted products.

Gizmodo reiterates Khan’s reminder that new laws are unnecessary to prosecute AI CEOs. Theregister.com highlights Khan’s appeal to invoke a 1934 precedent to tighten enforcement on AI executives. Politico confirms the legislative move by Cruz and Hawley, framing it as a shutdown of the exemptions. The debate is complicated by internal disagreements.

The FTC chair’s skepticism suggests agency resistance even as lawmakers advance the bill. Khan’s statements imply that existing legal mechanisms may already enable liability without new statutes, adding nuance to the reform narrative. Coverage does not yet clarify how the proposed legislation would reconcile with the FTC’s current stance or the practical limits of the 1934 precedent.