Call to Action for Artists: FTC Proposes New Merger Guidelines
Stand up to corporate monopolies - make your voice heard!
For today’s bonus article — which is available to both paid and free subscribers — I want to talk to you about the Federal Trade Commission and Department of Justice’s proposed new merger guidelines. Released on July 19th, the draft outlines how the agencies should approach corporate consolidations - referred to as “potentially illegal mergers” in their draft for public comment.
Here are the key changes you need to pay attention to because they will directly impact U.S. business and, germane to this newsletter’s interests, the arts:
Mergers should not significantly increase concentration in highly concentrated markets.
Mergers should not eliminate substantial competition between firms.
Mergers should not increase the risk of coordination.
Mergers should not eliminate a potential entrant in a concentrated market.
Mergers should not substantially lessen competition by creating a firm that controls products or services that its rivals may use to compete.
Vertical mergers should not create market structures that foreclose competition.
Mergers should not entrench or extend a dominant position.
Mergers should not further a trend toward concentration.
When a merger is part of a series of multiple acquisitions, the agencies may examine the whole series.
When a merger involves a multi-sided platform, the agencies examine competition between platforms, on a platform, or to displace a platform.
When a merger involves competing buyers, the agencies examine whether it may substantially lessen competition for workers or other sellers.
When an acquisition involves partial ownership or minority interests, the agencies examine its impact on competition.
Mergers should not otherwise substantially lessen competition or tend to create a monopoly.
I struggle to understand why anyone, other than corporations seeking to amass more power and wealth, would see anything here other than as a net positive. Gone would be the Ronald Reagan-era policy that saw the FTC be primarily focused on whether the merger would be likely to raise prices for consumers.
In so many ways, these new rules would make it more difficult for the Disneys and Amazons and Netflixes of the world to buy up their competitors. This is happening in publishing, too, where five corporations now dominate the U.S. book business. Competition, the alleged backbone of capitalism, is rapidly being choked to death.
Here’s what you can — and should do — regardless of whether you work in the arts or any other industry (mergers affect us all):
The FTC has invited public comment on these draft guidelines until September 18th. Comment immediately. Screenwriter John August has shared his submission here, if you need any inspiration.
When you’re finished, spread the word. This is our future as artists we’re fighting for, so don’t sleep on doing this.
If you belong to the Writers Guild of America like me, the Guild has encouraged its members to share their experiences. Use this link, if you can.
If you’re an artist and want to learn more about why this affects you so much, check out Scriptnotes’ sidecast on the subject.
¡Viva la revolución!
Thank you for bringing this to my attention.