Proposed Antitrust Law Could Cost NY Billions, Says Business Council

The Business Council of New York State has initiated a substantial campaign aimed at blocking a proposed antitrust bill that it claims could have far-reaching economic consequences for the state. According to Times Union, the organization has committed to a “seven-figure” investment in its effort to defeat the legislation, which would make it easier to prosecute companies under antitrust laws and allow class-action lawsuits for violations.

The bill in question, known as the 21st Century Antitrust Act, is sponsored by State Senator Michael Gianaris of Queens and Assemblyman Jeffrey Dinowitz of the Bronx. Supporters argue the legislation would modernize outdated competition laws and help curb monopolistic practices in an increasingly concentrated economy.

However, the Business Council argues that the measure would have the opposite effect, disrupting industries across New York and jeopardizing employment. Citing a 2023 study by the Computer & Communications Industry Association, the group warned that the bill could slash the state’s gross domestic product by $20 billion in its first year, potentially resulting in the loss of 58,000 full-time jobs, per Times Union.

In a formal statement, the Business Council cautioned that the long-term effects could be even more severe. “Over the next decade, the cumulative economic toll (in New York) could reach $281 billion in lost (gross domestic product) and nearly 600,000 lost jobs — figures that underscore the long-term danger of a hostile regulatory environment,” the group said.

Industries such as healthcare, retail, and finance are among those the council believes would be negatively affected by increased legal exposure and operational expenses. The group emphasized that these added costs would likely be transferred to consumers, potentially leading to reduced investment, lower tax revenues, and cuts to critical public services such as education and health care.

According to Times Union, the Business Council is also challenging the bill’s legal and regulatory implications, calling the proposed framework “new and untested.” The organization argues that the legislation would create uncertainty for employers and deter investment. “The bill’s vague enforcement standard and far-reaching scope would create massive legal uncertainty for New York employers, discourage critical investment, and penalize business practices that currently benefit consumers,” the group said.

Source: Times Union