Dems: Monopoly won’t play
Party leaders may pursue cases to improve competition
Democratic lawmakers are targeting major industries from beer, to banks and book publishing they argue have become so concentrated that they’re hurting competition, consumers and the economy.
The economic dislocation of the pandemic has laid bare the struggles of small businesses unable to compete with corporate giants. Experts and lawmakers are throwing out stunning stats:
•The four biggest airlines control about 65% of U.S. passenger traffic,
•Five giant health care insurers control an estimated 45% of the market,
•Pharmaceuticals are dominated by three major companies,
•The top four banks control about 44% of the market,
•The so-called Big Five book publishers control some 80% of the U.S. book market,
•Google alone accounts for about 90% of web searches worldwide.
Beer and a burger? Four companies are estimated to control 80% of U.S. meatpacking; the top four brewers and importers control about 76% of the U.S. beer market.
Congress, federal regulators and states had already been putting Big Tech companies under intense scrutiny for nearly two years and even suing some for antitrust. Now with Democrats in the majority in Congress and President Biden seemingly prepared to act on an anti-monopoly agenda, the focus is widening to the rest of corporate America.
Critics say the corporate concentration is quickening, limiting consumers’ choices, raising prices and eroding service.
U.S. Sen. Amy Klobuchar, D-Minn., has put forward expansive legislation to overhaul antitrust law. It would make it harder for dominant companies to win regulators’ approval of mergers and stretch the government’s authority over competition in other ways.
Klobuchar, who heads the Senate Judiciary subcommittee on competition policy, has launched a broad examination by the panel of monopoly concerns.
“At stake is nothing less than the future of our economy and the way of life that it supports,” Klobuchar said at the panel’s first hearing last week.
At the extreme, experts don’t expect the antitrust push to force breakups of big corporations, as is being called for by many critics of Big Tech. But legislative success could make it harder for the companies to make new acquisitions and shift the burden to them to prove that a given merger would be good for consumers.
Democrats are mindful that the Senate is split 50-50 with Republicans, and their one-vote margin depends on a tiebreaker by Vice President Kamala Harris. That dictates reaching for compromise, as it would likely take the support of at least 10 Republicans to make new antitrust law.
Republicans express concern over runaway concentration of corporate power, but some are saying, let’s not punish bigness for its own sake; better to look at each case individually.