- Sen.
Elizabeth Warren and Rep.Alexandria Ocasio-Cortez will introduce legislation to stop mergers of large companies during the coronavirus pandemic, the lawmakers said on Tuesday. - The "Pandemic Anti-Monopoly Act" would ban large mergers until the FTC says small businesses and workers "are no longer under severe financial distress" from the pandemic.
- The progressive lawmakers' bicameral effort comes after David Cicilline, the House Antitrust Subcommittee chair, called for a similar ban on mergers.
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Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez are planning to introduce a bill to stop mergers of large companies during the coronavirus pandemic, the lawmakers said on Tuesday.
The "Pandemic Anti-Monopoly Act" would ban large mergers until the Federal Trade Commission "determines that small businesses, workers, and consumers are no longer under severe financial distress," the lawmakers said in a statement.
The legislation, first reported by NBC News, would define large companies as businesses with over $100 million in revenue or market capitalization; private equity companies, hedge funds, or companies majority-owned by them; businesses that have a patent on coronavirus-related products, like personal protective equipment; or transactions otherwise required to be reported to the FTC.
"As we fight to save livelihoods and lives during the coronavirus pandemic, giant corporations and private equity vultures are just waiting for a chance to gobble up struggling small businesses and increase their power through predatory mergers," Warren said in a statement.
"Antitrust agencies have already admitted their capacity to review mergers is reduced by the crisis," Ocasio-Cortez said. "Meanwhile, reports say that Rite Aid, private equity and other big businesses are actively looking to scoop up smaller businesses and consolidate industry for their gains. These companies should be using their cash reserves to help their employees not to acquire more power."
The progressive lawmakers' effort comes after Rep. David Cicilline, head of the influential House Antitrust Subcommittee, said that a wider ban on mergers should be added to the next coronavirus relief package, fearing the pandemic could spur a "buying spree" among companies.
While the legislation from either set of lawmakers would likely face opposition in the Republican-led Senate, it signals a growing push in Congress for antitrust regulation over concerns that companies could take advantage of the pandemic. Sen. Josh Hawley, a Republican, said on Tuesday that antitrust concerns over Amazon's data practices could be especially urgent because of the coronavirus.
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