RECENT DEVELOPMENTS

Prices

• PEPSI & WALMART COLLUSION UNVEILED. The Robinson-Patman Act (RPA) requires wholesalers to offer retailers of all sizes the same pricing options. Before leaving office, former FTC Chair Lina Khan sued PepsiCo for violating the RPA. In May, Trump’s FTC dropped the case, questioning its legal merits. Last week, a federal court granted a motion by the Institute for Local Self-Reliance to unseal the heavily redacted complaint, which revealed Pepsi was not just offering Walmart better prices, the beverage giant executed a complex scheme to track Walmart’s competitors’ sales raise their prices to intentionally driving customers away from small grocers and back to Walmart. The FTC has not responded to the revelations.
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• SURVEILLANCE PRICING FOCUS. Surveillance pricing refers to utilizing consumer data to set personalized prices. New evidence suggests the tactic has hit online grocery delivery services like Instacart, costing users an additional $1,200 per year for groceries, as detailed in a new More Perfect Union video. In response, Rep. Craig (D-MN-02) is demanding answers from Instacart on their pricing practices. Sen. Ruben Gallego (D-AZ) also introduced the One Fair Price Act to ban surveillance pricing nationally. The legislation follows Rep. Casar’s (D-TX-35) Stop AI Price Gouging and Wage Fixing Act introduced this summer that also prohibits the practice. These federal developments build off momentum for tackling abusive pricing at the state level. Check out Economic Liberties The Fair Price Fight for more info.
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• WHAT’S THE BEEF? Despite the fact that beef prices are up nearly 15% this year, beef ranchers are earning less and their input costs are soaring. Instead, the price hikes are padding the wallets of four meat packers that control 85% of the market, including JBS, Cargill, Tyson, and National Beef. In November, President Trump directed the DOJ to investigate the largest U.S. meat packing companies for potential collusion and price fixing, in response to backlash against the Administration for planning to increase beef imports from Argentina and sore soy bean farmers hit by trade wars. And separately, Tyson and Cargill agreed to pay $87M to settle a class action lawsuit that alleged the companies fixed prices and restricted supply to inflate U.S. beef prices.  The meat giants’ ill-gotten gains don’t seem to be making their way to workers. In November, Tyson announced it would close a meatpacking plant in Lexington, Nebraska, which will put 3,200 people out of work, prompting a swift reaction from Rep. Flood (R-NB-01) and Sen. Fischer (R-NB) to keep the plant open, and JBS is closing a plant in Riverside, California that will cut 374 jobs.

Admin

• A-I, E-O, UH-OH. From Oklahoma to South Carolina, state legislators are introducing bipartisan online safety bills to protect kids from predatory content and to protect consumers’ privacy and data. Americans overwhelmingly support these efforts. But for the past year, federal lawmakers have attempted to pass a national AI state law moratorium to block these state bills regulating the use of AI, most recently and unsuccessfully in the NDAA. Now, President Trump is taking matters into his own hands, introducing an executive order that would direct federal agencies to sue states over AI legislation. Bipartisan opposition to the EO has already emerged, including from Florida Gov. DeSantis and Rep. Foushee (D-NC-04), and some are anticipating lawsuits from state AGs.
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• STATE AGs CHALLENGE HPE SETTLEMENT. In January, the Trump Administration’s DOJ filed a lawsuit to block Hewlett Packard Enterprises (HPE) from acquiring Juniper Networks, the second and third largest wireless local area network companies respectively. This summer, DOJ Antitrust reversed course and settled with HPE, likely influenced by White House-aligned lobbyists. Sens. Booker (D-NJ,) Klobuchar (D-MN,) and Blumenthal (D-CT) called on the DOJ inspector general to investigate the settlement, and pursuant to the Tunney Act, federal courts must confirm the agreement is in the public’s interest. In November, a federal court granted 13 state AGs’ motion to intervene in their Tunney Act review, though it remains to be seen whether the court will interrogate only the settlement terms or also the alleged corruption. Economic Liberties filed a brief urging the court to investigate the HPE settlement. An evidentiary hearing will take place March 23^rd.

Building Worker Power

• SCORE ACT STOPS SHORT OF ENDZONE. For decades, uncompensated athletes created billions of dollars in revenue for colleges and athletic conferences. Successful antitrust lawsuits in recent years have started to give athletes a cut of that revenue, but in response, the NCAA and the largest schools and conferences have pushed Congress to enact the SCORE Act—legislation that would strip away athletes’ newly gained rights and hand the NCAA immunity from further lawsuits. Bipartisan opposition, however, has stalled the bill. After meeting with the NFL Players Association, the Congressional Black Caucus, led by Rep. Yvette Clark (D- NY-09,) would oppose the deal, and Rep. Trahan (D-MA-03) announced the Democratic Women’s Caucus would join them. Rep. Chip Roy (R-TX-21) also called the bill “not ready for prime time.” The Act was removed from a scheduled floor vote and no future vote date has been announced.

Airlines

• DUFFY’S BIG AIRLINE GIVEAWAYS. During the 2022 holiday travel season, Southwest Airlines left 2 million passengers stranded due to operational failures. In response, Department of Transportation Secretary Buttigieg fined Southwest Airlines $140M, DOT’s largest ever. In 2024, DOT also fined American Airlines $50M for mistreating disabled passengers by failing to provide adequate accommodations. Now, Trump DOT Secretary Sean Duffy is letting both “Big Four” airlines off the hook. He  waived the remaining $11M of Southwest’s fine, and $16.7M of American’s, supposedly given service improvement investments both firms will make. These moves follow a series of consumer protection rollbacks amid outside pressure from airline lobbying groups. In fact, a recent Pro Publica report revealed that Duffy’s DOT has rolled back 30 rules that “could prevent as many as 1,000 deaths and 40,000 injuries each year,” by DOT’s own estimates.

Reining in Big Tech 

• GOOGLE AD TECH NEARS REMEDIES. The online advertising market (AdTech) has three components, buy side, sell side, and the exchange, where deals are cut for ad space. Google controls up to 90% of each of these markets, and in 2023 DOJ sued, claiming the big tech firm illegally monopolized the overall AdTech market. Earlier this year, a federal court in Virginia agreed with DOJ and ruled against Google. Though Google has plans to appeal, both parties were back in court last month for closing arguments on remedies the court should impose to eliminate Google’s monopoly and restore competition to AdTech. DOJ requested the court impose structural remedies, including requiring Google to divest the exchange technology, AdX, while Google sought behavioral changes, like allowing advertisers to use more than one bidding platform. A decision is expected next year. Check out Big Tech on Trial for a deeper dive into the Google AdTech case.
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• META’S MONOPOLY THAT WASN’T? Meta, owner of Facebook, Instagram, and WhatsApp, has over 3B daily users and is worth more than $1T. It grew by acquiring Instagram and WhatsApp, because, as CEO Zuckerberg stated, “it is better to buy than compete.” In 2020, a bipartisan FTC and 46 states sued Meta for monopolizing the social media market. Last month, however, a federal judge ruled against the FTC, citing a changed personal social networking market and competition from apps like YouTube and TikTok. The congressional Monopoly Busters Caucus called the decision “dead wrong and dangerous,” citing Meta’s record of privacy violations, harming kids’ mental health, and amplifying hate speech. The FTC has not yet indicated whether they will appeal, but FTC officials state they are reviewing their options.

Media

• WARNER BROS UP FOR GRABS. Netflix, the world’s largest subscription streaming video service, is trying to acquire Warner Bros. Discovery (WBD) for $82B, which would create a 430M subscribers streaming giant. In response, Paramount launched a hostile bid for WBD with backing from the public investment funds of Saudi Arabia, Abu Dhabi, and Qatar. Sen. Chris Murphy (D-CT) expressed concern about the deals, as did Hollywood stars like Ben Stiller. President Trump, however, has said he will be directly involved in DOJ’s merger review after having been in touch with Netflix CEO Ted Sarandos and Larry Ellison, father of Paramount CEO David Ellison. Trump has also pushed for the spinoff of WBD’s CNN as part of any deal. WBD’s board is recommending shareholders reject Paramount’s offer and go with Netflix. A shareholder vote is expected in early spring Now, Sens. Warren (D-MA) and Blumenthal (D-CT) are asking AG Bondi to recuse herself from the DOJ’s review. Check out Economic Liberties’ Matt Stoller on CNBC discussing why the Netflix deal would be the end of Hollywood.
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• BROADCAST OWNERSHIP CAPS UNDER REVIEW. Since the passing of 2004’s Consolidated Appropriations Act, Congress has prohibited a single company from owning local TV broadcast stations that cumulatively reach more than 39% of U.S. households to ensure access to diverse local news sources. In September, the Federal Communications Commission (FCC) began its quadrennial review of these broadcast ownership levels. The National Association of Broadcasters, representing the largest broadcasters, wants FCC Chair Brendan Carr to override Congress and increase the ownership cap. Such a change would be necessary for Nexstar’s proposed acquisition of TEGNA to close, a deal congressional Democrats like Sen. Van Hollen (D-MD) and Sen. Rosen (D-NV) are questioning. Newsmax CEO Christopher Ruddy has said lifting the cap would increase the power of the largest television networks like ABC and NBC, and facilitate additional broadcaster consolidation in a market where three companies already own 40% of stations. Carr has not indicated whether he will make a decision to lift the cap.

Improving Health Care

• TRUMP EMBRACES MEDICARE DRUG NEGOTIATIONS. Advancing the fight against Big Medicine, President Biden gave Health & Human Services the authority to negotiate prices directly with drug companies for Medicare patients as part of the Inflation Reduction Act. Last year, his Administration kicked off negotiations, with the first batch of new prices for 10 popular drugs set to take effect on Jan. 1.  Now, the Trump Administration is implementing the policy, negotiating down prices for 15 additional high expenditure drugs without generic competition, including drugs for type 2 diabetes, cancer, and asthma. The new prices will take effect in January 2027, and the administration anticipates additional savings of 44%, or $12B.

Promoting National Security

• MILITARY LOSES OUT ON RIGHT TO REPAIR. Big defense firms preclude DOD from repairing its equipment, leading to billions in higher costs for taxpayers. Army Secretary Daniel Driscoll decried the harms to national security these contracts cause, and Trump supported the military gaining the right to repair. The Senate’s 2026 NDAA included a provision granting this right to DoD, but it was cut in the House version after contractor opposition.

Merger Mix

• PE BAGS MED TECH MONOPOLY. In March, the Trump FTC filed one of its only lawsuits to block a merger, seeking to prevent GTCR, a Chicago-based private equity firm, from acquiring Surmodics. The FTC alleged the combination would threaten competition in the medical device coatings market. GTCR owns Biocoat, the second largest player in the market, while Surmodics is the largest. In November, a federal court rejected the FTC’s challenge and allowed the $627M deal to move forward on the condition that GTCR divest some of Surmodics’ assets. The FTC announced it does not plan to appeal the decision.

Private Equity

• YOUTH SPORTS TAKEOVER. Youth sports has exploded into a $40 billion industry, with the prices increasing 46% in five years, making it harder for families of all incomes to participate. Much of the cost increases are driven by PE firms using serials acquisitions to vertically integrate youth sports —controlling leagues, tournaments, venues, and governing bodies to extract maximum revenue from captive families. This week, the House Education and Workforce subcommittee Chair Kiley (R-CA-03) and Ranking Member Bonamici (D-OR-01) held a hearing to dive into the issue. Check out Economic Liberties’ Senior Fellow Katherine Van Dyck’s testimony from the hearing urging Congress to use antitrust tools to restore youth sports as an affordable public good. Watch the full hearing here.

Housing

• BIG BUILDERS DRIVE HOUSING SHORTAGE. The U.S. needs 3-8 million more homes, and median home prices are up to $460K. Instead of trying to boost supply and bring down prices, a new report from Economic Liberties details how big builders and landlords are profiting off the scarcity due to deregulation, eliminating government-backed financing, and the lack of sufficient financing alternatives for single family homebuilders that aren’t publicly traded. The report offers a series of policy solutions, including disincentivizing large builders from holding onto land without building, providing funding for small builders, and banning private equity roll ups of rental housing. A package of bills passed out of Senate Banking also offers solutions like removing policy barriers to increase the supply of manufactured housing. Check out Economic Liberties’ Matt Stoller on MSNow on how a financialized housing market is slowing down new construction and driving up costs for consumers.

Rethink Trade

• NORTH AMERICAN TRADE IN LIMBO: In 2020, Congress enacted the United States-Mexico-Canada Agreement (USMCA), an update of NAFTA President Trump negotiated, promising it would create thousands of new manufacturing jobs. The USMCA requires a six-year review. The legislation implementing USMCA requires the U.S. Trade Representative (USTR) to report to Congress on the agreement’s outcomes and the administration’s plans for renegotiations by January 2. Senate Finance Chair Mike Crapo (R-ID) and Ways and Means Chair Jason Smith (R-MO-08) granted current USTR Jamieson Greer’s request to verbally brief the committees in lieu of publishing a report, despite protests from Ranking members Ron Wyden (D-OR) and Richard Neal (D-MA-01) and other Senate and House Trade Committee Democrats about the lack of transparency. Democratic members of Congress including Reps. Debbie Dingell (D-MI-06) and Lloyd Doggett (D-TX-37) wrote Trump demanding the agreement be renegotiated to remove limits on domestic Big Tech anti-monopoly regulation and right to repair policy, and to add stronger labor and environmental protections. Nearly 700 unions and civil society groups also support renegotiation. USMCA must be extended as-is or amended by July 1, 2026, otherwise the agreement defaults to an annual review process until a 2036 sunset.  Check out Rethink Trade’s submission to USTR asking for renegotiation.
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• TRUMP REVERSES CHIP EXPORT CONTROLS. The Biden administration in 2022 imposed export controls on advanced computing chips in part to counter development of foreign military uses for AI. Now Trump is allowing Nvidia to sell H200 processing microchips to China—making them the most advanced U.S. artificial intelligence (AI) chips available for sale to Chinese companies. Trump said Nvidia will pay 25% of its chip sales to the United States as a condition of the export approvals. Sen. Hawley and other GOP members worried the arrangement threatened the U.S.’s competitive edge in AI.

ICYMI

• Sen. Blumenthal (D-CT) is calling on the FTC to investigate dialysis center duopolists, DaVita and Fresenius, that control 75% of the market, driving up prices and reducing quality of care for patients.
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• Check out Economic Liberties’ new paper on how hearing aids can become more accessible after entering the over-the-counter market.
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• Reps Riley (D-NY-19) and Van Drew (R-NJ-02) introduced the No Bonuses for Utility Executives Act to cap utility CEO compensation if their companies raise rates for customers.
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• Google settled with 53 AGs for $700M for monopolizing the app store on Android devices.
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• Visa and Mastercard proposed another insufficient settlement to resolve claims they engage in anticompetitive behavior to impose swipe fees on business owners. Economic Liberties and other advocacy groups submitted a letter urging the judge to reject the settlement, as they did in 2024.
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• The judge proposed final remedies in DOJ’s case against Google’s search monopoly, and Economic Liberties urged state AGs to appeal, given the remedies will not restore competition to the online search market.
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• Newstead Fire Company, a volunteer fire department in Western New York, filed a class action lawsuit against the largest fire truck manufacturers for inflating truck prices and restricting supply.
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• Rep. DeLauro (D-CT-03) and Rep. Nadler (D-NY-12) introduced a bill to ban price gouging with respect to goods subject to tariffs.
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• SCOTUS seems likely to rule against Rebecca Slaughter who challenged her termination as FTC Commissioner by President Trump, overturning 90 years of agency independence.