Biden’s FTC adviser reveals ties to China’s ByteDance.

A High-Paid Adviser with Potential Foreign Influence

A high-paid adviser to the Biden administration’s Federal Trade Commission (FTC) has recently come under scrutiny for her connections to the Chinese tech giant ByteDance, the parent company of TikTok.

Cristina Caffarra, an expert in European economics from Keystone Strategy, was brought in by the FTC as a consultant for an unsuccessful antitrust case against Facebook. However, it was revealed in April that she had also served as an adviser to ByteDance within the last three years.

The FTC paid Caffarra’s firm $2.7 million for a one-year consulting contract, which is still ongoing. This revelation has raised questions about potential foreign influence at the FTC, especially considering the agency’s heavy reliance on outside advisers.

Potential Conflicts of Interest

Caffarra has stated that her work for ByteDance did not overlap with her work for the FTC. However, the timing of her hiring by ByteDance in relation to her consulting work with the agency remains unclear. It is worth noting that her official Keystone Strategy biography does not mention her work for ByteDance.

ByteDance, fearing a ban on its subsidiary TikTok, has launched a massive public influence campaign. The Chinese company has hired firms and lobbyists with close connections to the Biden administration, including Democratic powerhouse SKDK. While some states have taken action against TikTok, the company has managed to avoid concrete federal consequences so far.

FTC’s Reliance on Outside Advisers

The disclosure by Caffarra highlights the FTC’s increasing use of unpaid consultants and experts, as reported by the inspector general last August. This practice raises concerns about potential ethical dilemmas and conflicts of interest within the agency.

Caffarra herself has been involved in advising the FTC in a case against Meta, which occurred shortly after her firm signed the consulting contract. The FTC objected to Meta’s merger with Within Unlimited, a competitor in the virtual reality industry where ByteDance’s subsidiary Pico is also active.

ByteDance’s Lobbying Efforts

ByteDance is actively fighting against U.S. congressional efforts to ban TikTok, which lawmakers from both parties consider a national security risk. The company has significantly increased its lobbying efforts, hiring consultants and lobbyists with ties to the Biden administration and influential legislators.

These lobbying efforts have proven effective, slowing down the progress of legislation aimed at reining in TikTok’s practices. Democratic senator Mark Warner has acknowledged the impact of TikTok’s public relations blitz on the momentum of the bill.

Upcoming Testimony and Further Scrutiny

FTC Chairwoman Lina Khan is scheduled to testify before the Republican-controlled House Judiciary Committee, where she is expected to face tough questions regarding the agency’s investigation of Twitter under Elon Musk.