Tag: monopoly

Pennsylvania’s Liquor Monopoly Is Imposing a New Fee That Will Cost $15 Million Per Year

Posted on by Lone Candle

“Liquor and wine will likely get more expensive next year in Pennsylvania—and residents will have no choice but to pay the higher prices, thanks to the state’s monopoly on alcohol sales.
The Pennsylvania Liquor Control Board (PLCB) voted earlier this month to impose a new “bailment fee,” which it says is necessary to cover rising warehouse costs and improve its distribution system. The $1 fee will be charged on all packages that move through the state’s warehouses, and will take effect at the start of 2026.

…

In other states, those producers would have more options when a wholesaler or retailer—the PLCB fulfills both functions—decides to impose a new fee or otherwise raise prices. Some wineries or distilleries might choose to pay the extra per-package fee and build the cost into their pricing. Others might look for different distributors to carry their product, or other distributors might try to undercut whichever one was raising fees in the first place.

In Pennsylvania, like in other states that maintain a monopoly on alcohol sales, those options do not exist. If you want to sell or buy alcohol in the Keystone State, you’ll simply have to accept whatever prices and fees the PLCB chooses to charge.”

https://reason.com/2025/07/28/pennsylvanias-liquor-monopoly-is-imposing-a-new-fee-that-will-cost-15-million-per-year/

Trump’s FTC Chair Is Continuing To Push Lina Khan’s Antitrust
Ideology

Posted on by Lone Candle

“Congress established the FTC in 1914 to prevent unfair competition and deceptive business practices. This has primarily meant “protecting Americans in their role as consumers,” according to Ferguson. The FTC enforces the Clayton Antitrust Act, which outlawed price discrimination between customers, exclusive dealing, interlocking directorates, and mergers or acquisitions that “substantially reduce competition.”

But Khan was more interested in Americans’ role as producers than consumers. In 2022 she signed a memorandum of understanding (MOU) with the National Labor Relations Board to “protect workers against unfair methods of competition, unfair or deceptive acts or practices, and unfair labor practices,” such as restrictive contract provisions. In August 2023, Khan signed a similar MOU with the Department of Labor recognizing both agencies’ shared commitment to protecting workers from deceptive earnings claims, restrictive noncompete and nondisclosure contracts, and the “impact of labor market concentration.”

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Ferguson’s endorsement of the 2023 joint merger guidelines, along with his hostility to the tech industry and support for enforcing the anti–price discrimination
Robinson-Patman Act, all suggest a continuation of Khan’s activist antitrust
ideology. The Joint Labor Task Force is yet more evidence.”

https://reason.com/2025/05/22/new-ftc-boss-same-as-the-old-boss/

What Antitrust ‘Reformers’ Got Wrong

Posted on by Lone Candle

“When the Justice Department successfully blocked a proposed merger between JetBlue and Spirit Airlines last year, the head of the antitrust division under President Joe Biden announced that it was “yet another victory” for American consumers.
The declaration may have been premature. After the deal fell apart, Spirit’s stock price cratered, and the company declared bankruptcy, fired hundreds of people and raised ticket prices. The company recently received court approval for a reorganization plan that will wipe out the company’s stockholders and hand control over to large bondholders led by hedge funds and asset managers.”

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“For decades, antitrust enforcement was guided by the notion that the effect on consumers should be regulators’ top priority. Biden’s antitrust enforcers rejected that approach — instead working from a relatively new, controversial and amorphous theory that, as Khan once described it, argues that antitrust law should instead focus on “workers, suppliers, innovators, and independent entrepreneurs” and try to dilute the economic and political power of large corporations. The unstated implication is that higher consumer prices may in fact be necessary and desirable to pursue these goals.”

…

“What the last four years show is that despite the best efforts of Khan, Kanter and their ideological allies, antitrust enforcement does not deliver broad, effective and durable economic policymaking.

Litigation is inherently fraught, and courts are not reliable or predictable enough for it to work. There can also be radical regulatory swings between administrations — like the one we are witnessing now — that can slow or even wipe out your work.

A conceptually simpler way to improve things for working-class Americans from a liberal economic perspective is one of the oldest around — redistributive taxing and spending. The Democratic Party has for years avoided anything that might look like a tax hike for the middle class, but one of the most reliably well-polling ideas in American politics is raising taxes on corporations and the wealthy.”

https://www.politico.com/news/magazine/2025/03/04/trump-biden-reverse-antitrust-revolution-00208848

Is the NFL ripping you off with monopolistic power? Video Sources

Posted on by Lone Candle

Is the nfl a monopoly or oligopoly? Femveratu. 2022. Reddit. Is the nfl a monopoly or oligopoly? Seth066. SwissyVictory. 2022. Reddit. Is the nfl a monopoly or oligopoly? Seth066. The Economic Structure of the NFL John Vrooman. K.G. Quinn (ED.). 2012. The

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USFL v. NFL: The Challenge Beyond the Courtroom

Posted on by Lone Candle

Trump played a key role in destroying the USFL in the 1980s?

“The NFL would later introduce extensive evidence designed to prove that the USFL followed Trump’s merger strategy, and that this strategy ultimately caused the USFL’s downfall. The merger strategy, the NFL argued, involved escalating financial competition for players as a means of putting pressure on NFL expenses, playing in the fall to impair NFL television revenues, shifting USFL franchises out of cities where NFL teams played into cities thought to be logical expansion (through merger) cities for the NFL, and, finally, bringing an upcoming antitrust litigation..”

https://www.law.berkeley.edu/sugarman/Sports_Stories_USFL_v_NFL__-_Boris_Kogan.pdf

Is this algorithm driving your rent higher?

Posted on by Lone Candle

“a software company called RealPage is being sued by the Department of Justice for using an algorithm that suggests rent prices to corporate landlords. The DOJ argues that its algorithm has driven rents higher, and constitutes an illegal information sharing scheme. That is, competitors (the landlords) who would otherwise be acting independently, have exchanged “nonpublic, competitively sensitive data” to the detriment of renters who don’t have access to such knowledge.”

https://www.vox.com/money/370351/realpage-doj-lawsuit-rent-algorithm-pricing

FTC Fights Grocery Store Merger That May Bring Down Prices

Posted on by Lone Candle

“a Kroger-Albertsons merger would not create a monopoly in the grocery market. According to a recent report by Retail Info Systems, Walmart remains the nation’s largest grocer, controlling 17 percent of the grocery market. The second and third largest grocers are Amazon and Costco. Kroger and Albertsons are only a distant fourth and sixth with market shares of 4.4 percent and 2.2 percent, respectively.
Grocery stores have experienced a declining market share, while superstores and online competitors have grown. For example, like many traditional grocers, Kroger’s market share has declined in recent years while Walmart’s has increased. Even if Kroger and Albertsons were to merge, it’s not clear that their combined market share wouldn’t continue to decline. The merger would simply enable Albertsons and Kroger to bulk up and compete with larger competitors, like Walmart.

In addition, Kroger’s decision to sell stores in overlapping markets where Albertsons operates means the merger would not increase concentration in any market. This has traditionally been enough for the FTC.

The national grocery market is also becoming more competitive, not less. No longer limited to brick-and-mortar supermarkets and independent grocery stores, the grocery market now includes a growing assortment of e-commerce stores, like Amazon, discount grocers like Aldi and Lidl, and delivery providers like FreshDirect and Instacart. These newer market entrants have fundamentally altered grocery shopping.

The merger will heighten competition among larger competitors, which will drive down prices for consumers. While a merger would not make Kroger and Albertsons the dominant industry players, it would allow them to compete more effectively with others, putting pressure on all major retailers to keep prices low as they fight to preserve their customer base. In fact, Kroger and Albertsons have indicated that the merger will generate $500 million in new cost savings for them that they plan to use to cut consumer prices. In addition, they plan to expand their lineup of affordable store brand products and spend $1.3 billion on improving customer service at Albertsons stores.”

https://reason.com/2023/11/24/ftc-fights-grocery-store-merger-that-may-bring-down-prices/