“Ethical Markets is happy to post this news from Sarah Miller, Executive Director of the Economic Liberties Newsletter, which accords well with our thinking and that of Senator Amy Klobuchar’s “Antitrust“ (2019).
~Hazel Henderson, Editor.”
NEW RESEARCH ALERT – “Democracy for Sale: Examining the Effects of Concentration on Lobbying in the United States”
Concentrated markets are not only bad for consumers, bad for workers, and bad for innovation. They are bad for our democracy
New statistical research out this week from Economic Liberties reveals a link between concentration and corporate lobbying through a series of case studies that take a look at data from three industries — internet companies, pharmaceuticals, and oil and gas. The report finds proof that economic concentration trends can predict lobbying spend in the years that follow industry consolidation. The findings make it clear: Lobbying doesn’t make a firm big. Its bigness makes it better able and more willing to lobby. Big corporations can corrupt government in ways that businesses in competitive markets do not. Check out coverage of the report in Bloomberg, Protocol, The New York Times’ DealBook, and The Hill!
THE LATEST
The Lina Khan Effect: Since taking on her new role as Chair of the Federal Trade Commission, Lina Khan has wasted no time getting to work. Under her leadership, the Commission has voted to help secure consumers’ right to repair equipment they own, reinvigorated its merger review process, and begun holding open meetings to learn from businesses, entrepreneurs and those facing various anticompetitive conduct from dominant corporations.
Last week, the agency also stood up to Facebook, filing an amended complaint against the tech giant that provided detailed proof of Facebook’s monopoly power and clearly laid out the copy-acquire-kill strategy Facebook has used to build this dangerous power. As Executive Director Sarah Miller told The Washington Post, it sent “a clear message: Under the leadership of Chair Khan, the agency will no longer be bullied by corporate titans.”
With the FTC finally waking up to the dangers of corporate concentration, Economic Liberties’ Legal Counsel David Barclay & several of our business partners like the National Grocers Association and National Community Pharmacists Association spoke at a recent open meeting, highlighting anticompetitive issues in the economy. Listen to what they had to say here. And check out a letter the Protect Our Restaurants coalition sent to the FTC here.
A Whole of Government Approach: The FTC isn’t alone. In July, President Biden signed an Executive Order designed to make every part of the executive branch — including but not limited to antitrust enforcers — focused on the problem of abusive corporate power. In the weeks since, Economic Liberties has worked closely with a network of allies representing thousands of independent businesses, entrepreneurs, farmers, and pharmacists to elevate the importance of this Executive Order and to ensure the administration is successful in implementing it. Read our recent letters to HHS and CFPB, learn more about efforts in Politico’s Morning Tech, and keep an eye out for new developments.
Exposing Big Tech’s Spin: Economic Liberties released two policy quick takes that explain how Facebook, Google, and Amazon prey on small businesses while simultaneously relying on them as props for their PR and lobbying campaigns. Learn more about “Myth vs. Fact on Big Tech Monopolies” and “The Truth About Google, Facebook, and Small Businesses in Politico Morning Tech. And listen to what Senator Warren and Congressman Mondaire Jones had to say about the fight against Big Tech at a recent event we hosted with Freedom from Facebook and Google, which welcomed new members like the Center for Popular Democracy, Main Street Alliance, Fight for the Future, and Demos, among others!
Myth-Busting Mergers and Acquisitions: Corporations are enjoying what industry observers have called a “once-in-a-generation opportunity to make acquisitions and consolidate power.” As Economic Liberties’ Executive Director Sarah Miller detailed in a viral explainer video for More Perfect Union, this merger booms create a broad range of systemic economic challenges, including needless layoffs and reduced wages for workers.
States Catch Anti-Monopoly Fever: Over the past year, anti-monopoly work has flourished across the country. Thirteen states introduced legislation to form an interstate compact to end corporate tax giveaways. Lawmakers in at least seven states – Democrats and Republicans, representing rural and urban areas of blue and red states – introduced bills taking aim at the power Apple and Google wield over digital app stores. And the New York state Senate approved the 21st Century Antitrust Act, bold legislation that would break monopoly power in technology and other markets. Economic Liberties’ State and Local Director Pat Garofalo has been closely involved, working with local allies like Good Jobs First, Reinvent Albany and the Coalition to Phase Out Tax Giveaways, writing explainers, submitting testimony, joining press conferences, and working closely with influential local lawmakers. Stay tuned for more!
Taking on App Store Gatekeepers: Building on this work happening in the states, Senator Blumenthal (D-RI) introduced bipartisan antitrust legislation to end Apple and Googles abuse of dominance over app distribution. As Economic Liberties’ Pat Garofalo and Matt Stoller explained in The New York Times earlier this year, bills like this would not only address Big Tech’s monopoly power, it would also create new opportunities for small businesses and entrepreneurs.
Reviewing Sen. Klobuchar’s Antimonopoly Book for The Washington Post: In her new book “Antitrust: Taking on Monopoly Power From the Gilded Age to the Digital Age,” Senator Amy Klobuchar (D-MN) writes to make the important case that monopolies extend into nearly every sector of the U.S. economy — not just Big Tech. Economic Liberties’ Director of Research shared his thoughts on the book and its correlation with her chairwomanship of the Senate Judiciary Committee’s antitrust subcommittee.
Addressing a Problem Like the Sacklers: In an exclusive piece for The American Prospect, Senior Fellow Moe Tkacik digs in on the unconscionable Purdue Pharma bankruptcy and explains why we must rethink limited liability and abolish the loopholes in bankruptcy law that allow private equity firms to inflict mass suffering and walk away scot-free.
SOMETHING YOU CAN DO
Economic Liberties’ Access to Markets initiative, which is elevating diverse voices from the business community to highlight the ways dominant corporations abuse their market power, is encouraging business owners and entrepreneurs who been harmed by unfair contract terms to submit a comment to the FTC about their experience. Additionally, Access to Markets has rolled out examples of possible one-sided contract terms to better assist those experiencing anticompetitive conduct to put a name to their experience. If you have experienced navigating unfair contracts and are interested in sharing your story with the FTC, please fill out this FTC form by September 30!