Christine Varney

Assistant Attorney General for Antitrust at the Department of Justice (since April 2009)

(Hogan & Hartson LLP)

Why She Matters

Varney has been out of politics for more than a decade, but she played a key role on President Barack Obama's transition team. A lawyer with a background in internet law, Varney was the personal counsel for the transition team and is now Obama's Assistant Attorney General for Antitrust.

Under Varney, the Antitrust Division of the Justice Department will almost certainly be more agressive than it was during the previous administration. Early in 2009, the division began investigating cell phone companies, large food processors, Google and more.

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Background

At a Glance

Career History: Partner at Hogan & Hartson in Washington D.C. (1997 to 2009); Personal counsel to President Barack Obama's transition team (Nov. 2008 to January 2009); Commissioner at the Federal Trade Commission (1994 to 1997); Cabinet Secretary for President Bill Clinton (1993 to 1994)
Hometown: Syracuse, N.Y.

Alma Mater: SUNY-Albany, B.A., 1977; Syracuse University, M.P.A., 1978; Georgetown University Law Center, J.D., 1986
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Path to Power

Varney was the oldest of six children who grew up in Syracuse, N.Y. Her father was a lawyer for Robert Kennedy's 1968 presidential campaign, and Varney was interested in politics as a young child. She graduated from SUNY-Albany and then went to Syracuse's Maxwell School of Citizenship and Public Affairs for a master's in public affairs.

She moved to Washington after graduating from Syracuse in 1978 and earned a law degree from Georgetown while working. She worked as a lawyer for Hogan & Hartson in Washington and volunteered at the Democratic National Committee. She joined the DNC full time as chief counsel in 1989.

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She stayed there until then-Gov. Bill Clinton (D-Ark.) hired her to be chief counsel for his 1992 presidential campaign. After he won, Clinton kept Varney on his staff, first as chief counsel for the Presidential Inaugural Committee and later as Assistant to the President and Secretary to the Cabinet.

In Oct. 1994, Clinton nominated his longtime assistant to serve on the Federal Trade Commission. "I would not trade my White House experience for anything," Varney said. "It was exciting, it was demanding, it was challenging, it was absolutely the center of power. On the other hand, you have very little time to be reflective, and very little time to be with your family." During her confirmation hearing, which lasted just 18 minutes, Varney said her priorities at the FTC would be antitrust issues and telemarketing. But her most famous decision dealt with the use of Joe Camel to advertise cigarettes, and many of her other high-profile decisions focused on regulation on the internet.

After three years, Varney left government to start an internet law practice at Hogan & Hartson in Washington, D.C., saying, "I have been in public service for five years. It's time for me to move on." She said she saw the opportunity to become a partner specializing in internet law as a chance to develop a rapidly changing area of law. But she didn't rule out the possibility of returning to public service.

After Barack Obama was elected president in Nov. 2008, he appointed Varney to his transition team with the title personal counsel. She was called his chief vetter by the Times of London, and speculation arose that she would be Obama's cabinet secretary, the same position she held in the Clinton White House. That position ultimately went to Chris Lu.

But Varney was rewarded in January with an appointment as Assistant Attorney General for Antitrust. "Through her time both inside and outside of government, she has worked to foster vigorous competition and has led the way in taking new approaches and utilizing newer theories, particularly in technology markets," the Obama transition team press release announcing her nomination said.

The Issues

The main goal of the Antitrust Division of the Justice Department is to enforce U.S. antitrust laws through either criminal or civil lawsuits.

Varney has said that the Antitrust Division will play a particularly important role during the economic downturn. She is critical of the idea that companies can self-police. "As many observers agree, in past years, with the exception of cartel enforcement, the pendulum swung too far from [former antitrust AAG] Thurman Arnold's legacy of vigorous enforcement," Varney said at a May 2009 speech to the Chamber of Commerce. "As antitrust enforcers, we cannot sit on the sidelines any longer - both in terms of enforcing the antitrust laws and contributing to sound competition policy as part of our nation's economic strategy."

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With this idea of vigorous enforcement in mind, the Antitrust Division early in 2009 began investigating a handful of companies for antitrust violations. Wireless companies have asked the DOJ to investigate claims that broadband cable companies illegally stop them from purchasing television shows for cell phones, and a few congressmen have requested an investigation into whether large food operators are unfairly hampering small agriculture companies. Varney is also looking at pharmaceutical companies and Google's deal with book publishers to put books online. All eyes will be on the Antitrust Division as Democrats decide whether to pass legislation eliminating an antitrust exemption for railroad companies.

Cabinet Secretary, FTC and Hogan & Hartson

The cabinet secretary acts as the contact between members of the cabinet and the president and helps coordinate initiatives between the White House and various agencies. Varney is experienced in that role and has strong expertise in internet law. While with the FTC, Varney said regulation is needed to protect kids from giving away information on the internet, and she hinted that she would support rules banning the collection of information from minors. "If you intend to collect information about kids and sell it without consent - no," she said.

At the FTC, Varney approved the merger between aircraft manufacturers Boeing and McDonnell Douglas but helped block Staples and Office Depot from merging. Varney said she took pride in cracking down on unsafe herbal remedies, but her best-known decision at the FTC stopped the use of Joe Camel as a smoking mascot. The FTC had voted not to interfere with the advertising campaign in 1994, but Varney was appointed shortly after that decision and became the swing vote when the case was reopened in 1996.

After Varney left the FTC, she started an internet law practice at the Hogan & Hartson law firm, and she lobbied for the Online Privacy Alliance until 2006. In July 2008, Varney wrote an op-ed in the Wall Street Journal urging Congress not to pass The Arbitration Fairness Act of 2007, sponsored by Sen. Russ Feingold (D-Wis.). The bill would make it more difficult for companies to go to arbitration with consumers. It was not voted on while Obama was in the Senate, but the President seems to favor cutting back on arbitration. He cosponsored another bill, the Servicemembers Access to Justice Act of 2008, that said "Notwithstanding any other provision of law, any clause of any agreement between an employer and an employee that requires arbitration of a dispute arising under this chapter shall not be enforceable."

Varney provided antitrust, regulatory and consumer advice to Washingtonpost.Newsweek Interactive, eBay, Dow Jones & Company, AOL and others.

The Network

A member of Bill Clinton's White House staff, Varney was a supporter of Sen. Hillary Rodham Clinton (D-N.Y.) during the Democratic primary but switched her support to President Barack Obama during the general election. She was cabinet secretary for President Clinton, acting as a liaison between Clinton and his cabinet.

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