Watchdog Opposes Radical, Expensive Overhaul of Antitrust Enforcement

For Immediate Release

Contact: MacKenzie A. Morales

(615) 512-3936

Washington, D.C. – The Taxpayers Protection Alliance (TPA) is greatly concerned about Senator Amy Klobuchar’s (D-Minn.) recent antitrust reform bill that would greatly expand the government’s antitrust enforcement power and authorize a $300 million increase to the annual budgets of the Department of Justice’s Antitrust Division and the Federal Trade Commission, which enforce antitrust laws.

In response, TPA Vice President of Policy Patrick Hedger offered the following statement:

“Sen. Klobuchar wants to greatly increase the government’s power to arbitrarily enforce antitrust laws. Her approach rejects the notion that, in America, freedom is the default setting. It is this kind of thinking that has resulted in the stagnant economic growth we’ve grappled with for decades, that you must first have the blessings of the government, not your customers, to do business. Shifting the burden of proof from the government to the private citizen in any matter of legal consequences should deeply trouble all Americans.

“The proposed legislation further stacks the deck for the government by eliminating the market definition requirement. If the government is a hammer, the purpose of this is to make anything and everything look like a nail and punish businesses that have achieved exceptional success with unique products and innovations. How is this pro-consumer?

“Another goal of this legislation is to discourage large firms from engaging in new acquisitions and so-called “mega-mergers.” This is the ultimate stepping-on-a-rake of competition policy. Mergers and acquisitions are key drivers of investment and innovation in new companies and products that better serve consumers. Investors and entrepreneurs deserve to be rewarded for their efforts and this legislation closes one of those avenues. In addition, large mergers often help existing firms survive in the face of new, innovative competitors, and are usually a sign of weakness, not strength. Let’s not forget that the government foolishly discouraged the merger of Blockbuster and Hollywood Video, only for them both to be put out of business by Netflix.

“Finally, taxpayers should balk at the proposal’s additional $300 million of taxpayer dollars to enforce these dangerous, counterproductive measures.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the econom