Small business groups urge enforcement of antitrust laws
Small business groups urge enforcement of antitrust laws
- November 2, 2021 |
- Walt Williams
Ten groups representing grocers, pharmacies and restaurants have formed a coalition to press federal regulators to enforce antitrust laws, saying the activities of a few large companies are harming small businesses.
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The Main Street Competition Coalition was created to encourage enforcement of the Robinson-Patman Act. The act was enacted in 1936 to prevent unfair trade practices that allowed chain stores to purchase goods at lower prices than other retailers, according to a summary on Investopedia.
Coalition members include the National Grocers Association, National Community Pharmacists Association and National Association of Convenience Stores. The groups argue that a few companies wield enormous power over their industries but face little regulatory oversight. As a result, medium- and small-sized businesses are increasingly subject to discriminatory terms and conditions, including less favorable pricing and price terms, and an inability to access products in short supply but are available to their competitors, the coalition said in a letter to the Federal Trade Commission.
"The problems that flow from economic discrimination have been laid bare during the COVID-19 pandemic," the groups said. "Throughout the crisis, dominant companies have received preferential treatment in supply shortage scenarios, meaning they get access to critical goods and services that smaller firms do not. These shortages occur in the first place because concentration creates a lack of supply chain redundancy and resiliency."
The coalition is urging FTC to use its regulatory authority to study economic discrimination and investigate the arrangements between dominant retailers and suppliers to learn if those deals are harming smaller competitors.
The other members of the coalition are American Beverage Licensees, Energy Marketers of America, Protect Our Restaurants, Organic Farmers Association, NATSO—Representing America's Travel Plazas and Truck Stops, Western Growers Association and National Beer Wholesalers Association.
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