From Publishers Weekly:
Minnesota senator Amy Klobuchar continued to make the case for stepping up antitrust actions yesterday, appearing in a webinar sponsored by the American Booksellers Association and Small Business Rising, a coalition of independent businesses advocating against monopolies.
Saying that “we can’t use duct tape and band aids anymore” in dealing with monopolies, Klobuchar noted that she and Senator Chuck Grassley (R-Iowa) had cosponsored a bill, the Merger Filing Fee Modernization Act, that will, among other things, provide $100 million to the Federal Trade Commission and the antitrust division of the Department of Justice to hire more lawyers to ensure enforcement of antitrust laws “to get the job done.”
Klobuchar said she hopes the bill will be approved by the full senate soon, since the government needs more tools in its arsenal to take on Amazon and other conglomerates. “This is all about cracking down on unfettered growth and abuse of market power,” she argued, advocating for a “reboot” of the antitrust movement in the U.S. by updating laws so as break the stranglehold of conglomerates upon the economy.
Klobuchar spoke of the negative impact of Amazon on the economy, describing it as “both a monopoly and a monopsony, because the people who sell things to Amazon don’t sell to anyone else and that is the definition of a monopsony.” She noted that “too much consolidation in concentrated markets” has a disproportionate negative impact upon “the minority community and small businesses within the minority community.”
It’s not just Amazon either, she pointed out, it’s also Facebook and Google and other Big Tech companies. Citing an email written by Facebook founder and CEO Mark Zuckerberg, in which he’d written, “We’d rather buy than compete,” Klobuchar noted, “You buy all your competitors up, you lose that competitive force” in the marketplace.
“We know the stakes are high, the facts are stark, and if we don’t act now, the curse of bigness that Supreme Court Justice Louis Brandeis once warned about will continue to threaten American innovation,” she said. “As Justice Thurgood Marshall once said of our antitrust laws, they are as important to the preservation of our free enterprise system as the Bill of Rights is to the protection of our personal freedom.”
Link to the rest at Publishers Weekly
PG wonders if Sen. Klobuchar cares about what consumers, including those living in Iowa, think about Amazon.
The reason Amazon is so big is that ordinary Americans really, really, really like buying things from Amazon. Do they have a voice in the monopoly/monopsony discussion?
Of course, consumers don’t hire Washington lobbyists and, to the best of PG’s knowledge there is no wealthy Political Action Committee that has been created by consumers that provides large campaign donations to elected officials in Washington or elsewhere.
PG doesn’t like to see any small business have financial problems, but one of the great strengths of the US economy is that it is constantly changing in response to what customers would like to have.
PG has mentioned this before, but he really, really doesn’t want to have to walk into a physical bookstore to buy a book any more. It’s just so much nicer to get what he wants from Amazon. The books are easier to find on Zon and he doesn’t have to worry about whether the store will be open or not.
Additionally, PG won’t say that he is forever swearing off of physical books, but it has been at least a couple of years, probably more, since he has bought or read from a physical book other than a couple of reference works.
PG is very happy to not have to worry about Covid when he walks out of his house these days (unless you live in PG’s neighborhood, your experience might be different), but he has been much more anxious to go to enjoyable restaurants where he and Mrs. PG can have a good conversation than he is to resume shopping trips to any locations other than a couple of grocery stores and Costco (when he needs a pallet-load of Raisin Bran or socket wrenches or some such thing).
Perhaps PG and most others will revert entirely to pre-Covid patterns of behavior, but PG doubts it.