New merger guidelines could help with a lot of things

Like, you know, fairness, justice, and in general over time a better deal for almost everyone.

A major shift is afoot in the federal government’s stance on big business. Earlier this year, the two agencies in charge of enforcing the antitrust laws, the Federal Trade Commission and Department of Justice, announced that they plan to revise their merger guidelines. That may sound like a minor technicality, but in fact, it heralds a sea change in the workings of antitrust law. The new guidelines, expected later this year, will likely make it much harder for large corporations to amass power by buying other companies. Over time the guidelines will also shape how judges understand and apply the antitrust laws in their rulings.

Had this shift in enforcement policy come about years ago, Americans wouldn’t be contending with a host of debilitating problems caused by consolidation. Mergers in the food industry, for example, have allowed dominant meatpackers and other processors to slash the incomes of farmers and food workers, while raising grocery prices. Mergers among manufacturers of everything from appliances to beer cans have led to the shuttering of plants, costing communities thousands of jobs. Hospital mergers have sent health care costs soaring, while dozens of rural communities have lost their hospitals altogether, as big hospital chains bought and then closed small facilities. Meanwhile, Amazon, Facebook, and Google have used acquisitions to thwart potential competition and lock in their dominance, to the detriment of small businesses, local newspapers, and others seeking to communicate or sell products online.

New merger guidelines hold the promise of putting a stop to these kinds of domineering moves by powerful corporations. But their potential isn’t limited to simply preventing America’s monopoly problem from getting worse. Strong merger enforcement would create a fairer playing field for small businesses and allow more startups to gain a toehold, deconcentrating industries over time. And as we’ve noted, the merger guidelines provide a framework for understanding the antitrust laws that history shows can significantly influence how the courts apply the law, and not only in merger cases. - ILSR

One of the good things Pres. Biden is doing

Lately I've been passing along items critical of the Biden administration, all of them justified and righteous. But it hasn't been total disappointment. Actually, it's been pretty much the mix of good and bad that I and many others expected.

Along with Khan, the Biden administration now has antitrust advocates with a track record of actually pursuing antitrust in powerful positions, rather than former toadies ready to engage in the corporate capture that has been the norm under recent presidents, both Republican and Democrat.

Both will need some help from Congress. Staff attorneys at the FTC and the Justice Department have been leaving the government, not only because of differences of opinion with the new regime, but because Big Tech firms are throwing money at them. Enticing new talent will require money, and a bill that recently passed the Senate which would increase merger fees to fund enforcement agencies will help. Expect a much younger and less experienced crop of more aggressive lawyers at both agencies.

Biden in some sense tipped this move with his sweeping July executive order, which directed the Department of Justice to pursue a litany of competition-enhancing antitrust measures, everything from consideration of unwinding past mergers to a patent policy reform to expanding competition in air transportation. - The American Prospect