Link.
Senate and House Democratic leaders today proposed new antitrust laws that could prevent many of the biggest mergers and break up monopolies in broadband and other industries.
"Right now our antitrust laws are designed to allow huge corporations to merge, padding the pockets of investors but sending costs skyrocketing for everything from cable bills and airline tickets to food and health care," US Senate Minority Leader Chuck Schumer (D-NY) wrote in a New York Times opinion piece. "We are going to fight to allow regulators to break up big companies if theyre hurting consumers and to make it harder for companies to merge if it reduces competition."
The "Better Deal" unveiled by Schumer and House Democratic Leader Nancy Pelosi (D-Calif.) was described in several documents that can be found in an Axios story. The plan for "cracking down on corporate monopolies" lists five industries that Democrats say are in particular need of change, specifically airlines, cable and telecom, the beer industry, food, and eyeglasses. The Democrats' plan for lowering the cost of prescription drugs is detailed in a separate document.
Today, US antitrust regulators and other federal agencies "can only consider the narrow, short-term effects of a merger on price and output, and have the burden of proving that consolidation would be anticompetitive," the Democrats' plan said.
Democrats said they are proposing "new merger standards that require a broader, longer-term view and strong presumptions that market concentration can result in anticompetitive conduct." Regulators would have to determine whether mergers "reduce wages, cut jobs, lower product quality, limit access to services, stifle innovation, or hinder the ability of small businesses and entrepreneurs to compete."
Companies seeking permission to complete the biggest mergers would face a stricter test. The proposed standards would automatically presume that the largest mergers are anticompetitive and should be blocked unless the merging companies can "establish the benefits of the deal."
"Regulators would be empowered and required to take corrective measures if they find abusive monopolistic conditions where previously approved measures fail to make good on their intended outcomes," the plan says.
The Democrats' plan likely stands little chance of being enacted as long as Republicans control the House, Senate, and White House. But Democrats are trying to tell voters how things might change if they do well in next year's midterm elections.
Beyond mergers and telecom, Democrats said they want "tough new enforcement" to prevent price gouging in prescription drugs, with a new government agency dedicated to stopping unfair pricing. "The enforcer will be charged with investigating drug manufacturers and protecting patients and taxpayers from egregious prescription drug price increases," Democrats wrote. "The agency will identify drugs that have unconscionable price increases and impose fines on the manufacturer that are proportional to the size of the price hike, reinvesting the money from the fines into new cures research and development at the National Institutes of Health."