Posted by The Hills
Thanks to smart antitrust, Whole Foods is no longer ‘Whole Paycheck’
By Jonathan M. Barnett
It turns out we can learn a lot about antitrust from cheap tomatoes. When Amazon acquired Whole Foods, the antitrust agencies’ failure to block the transaction was vigorously criticized as another indication of antitrust enforcers’ having fallen asleep at the regulatory wheel.
Commentators pointed to the $13.4 billion transaction as evidence of the expanding reach of digital monopolies into every corner of the economy. The prognosis for competitive markets was so grim that some even argued (and still argue) that companies like Amazon should be broken up.
Yet, the market has disproved these doomsday predictions. So far, it appears that Amazon’s foray down the grocery aisle has done nothing but good for consumers. Whole Foods’ recent announcement of dramatic price reductions is only part of reinvigorated competition in the grocery market.
The entry of a formidable competitor has precipitated substantial discounts and prompted “old economy” incumbents to invest in “new economy” innovations, such as expanding online ordering and home delivery services.
This is exactly the type of price competition and product innovation that antitrust is designed to foster. Blocking the Whole Foods acquisition would have been classic policy overreach from the “big is bad” days of pre-Chicago antitrust.
The rush to condemn the Amazon-Whole Foods acquisition is indicative of a resurgent antitrust populism that has emerged in policy commentary and has been advocated by some politicians. These calls for dramatic intervention on antitrust grounds overlook three critical points.
Featured News
UK’s CMA Investigates Education Software Company for Market Abuse
May 14, 2024 by
CPI
Schumer Urges FTC Caution on Chevron’s $53B Hess Deal Over Gas Price Fears
May 14, 2024 by
CPI
Amazon Urges US Judge to Block FTC Probe into Data Preservation
May 14, 2024 by
CPI
Colorado Makes History: First State to Enact Comprehensive AI Legislation
May 14, 2024 by
CPI
Class Action Settlement Reached in Cheerleading Monopoly
May 14, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI