1. For at least 10 years, Pepsi has conspired with Walmart to force up grocery prices. That’s the shocking evidence made public today in an unsealed FTC lawsuit. The suit was dropped in May by @AFergusonFTC just before it was to be un-redacted. We went to court to get it unsealed & won. 2. The evidence we can now see demolishes the core argument made by opponents of the Robinson-Patman Act. They claim not enforcing the law has led to lower prices. But this new material shows the opposite: Pepsi forced all grocers besides Walmart to raise their prices.

1. This is now unsealed. The FTC filing shows Pepsi worked closely with Walmart to force other retailers to raise their prices on Pepsi products. The Khan-era FTC brought the case; Trump/Ferguson dropped it as “weak.” It looks anything but. It directly targets high prices.

https://twitter.com/stacyfmitchell/status/1952717552385245369

2. The evidence shows that Pepsi punished Walmart’s competitors if they discounted Pepsi products. Pepsi would increase their wholesale cost or eliminate promotional payments to force Walmart's rival to raise its price to consumers.

1. ILSR has filed a motion in federal court to unseal the FTC’s antitrust complaint against PepsiCo. The case bears directly on high grocery prices & food deserts—and would've marked a crucial revival of the neglected Robinson-Patman Act. But the public may never get to see it. 2. Most of the complaint is heavily redacted, including the name of the favored retailer (reportedly Walmart). The complaint alleges that Pepsi gave a favored big-box retailer illegal price breaks — while raising prices to competing independent grocers and their customers.

1. My colleague Ron Knox just published a killer guide to resisting monopolies. It shows that fighting monopoly power isn't just a job for the government — it's something regular people can do every day in their communities and workplaces. microcosmpublishing.com/catalog/zines/… 2. Resist Monopolies! — published by the great folks at Microcosm — weaves together the stories of people across the country pushing back against corporate domination — and winning.

1. How strong are your state’s antitrust laws? Does your state AG have all the tools s/he needs to go after corporate abuse? What can your state legislature do to fight monopolies? ILSR has new resources for you, created by my colleague @ronmknox: ilsr.org/independent-bu… 2. Back in the 19th century, states were the first on the scene when corporations started to amass too much power. They came up with the first antitrust laws, which inspired federal law.

1. Big news! The FTC took action today to end Walmart’s stranglehold on the grocery market. The agency filed suit against Pepsi for giving illegal and unfair price advantages to Walmart while charging competing grocery retailers higher prices. ilsr.org/articles/stacy… 2. It is a violation of the Robinson-Patman Act for a large supplier to collaborate with a big retail chain to help it drive smaller retailers out of business and dominate the market. But for the last 40 years — until now — the FTC declined to enforce the law.

1. A hallmark of the dark ages of antitrust was that the agencies often went after small players for collusion if they banded together to survive against a dominant corporation. @linakhanFTC just undid part of that legacy & offered a critique of it. ftc.gov/news-events/ne… 2. During the dark years, antitrust enforcers treated anything that might be deemed collusion among small businesses or other small players as a cardinal sin — even as they viewed the exercise of market power by a single large dominant corporation as benign or even beneficial.

1. For decades, local grocery stores thrived. Then in the 1980s, the government stopped enforcing a key antitrust law. Rapid consolidation followed, giving rise to food deserts & a price spike. Our new graph shows the dramatic impact of this policy shift. ilsr.org/articles/polic… 2. Today, when growing corporate concentration seems to be an inevitable fact in every sector, it’s remarkable to look back at the grocery industry in the period from the 1930s to the 1980s.

1. The conventional explanations for food deserts—that these places are too poor or too rural to generate enough spending on groceries, or too Black to overcome racist corporate redlining—fail to grapple with a key fact: food deserts didn’t used to exist. theatlantic.com/ideas/archive/… 2. Poverty and ruralness have been with us forever, but food deserts arrived only in the late 1980s. Prior to that, even the smallest towns and poorest neighborhoods could generally count on having a grocery store — and often they had several.

1. I just read the judge’s unsealed ruling posted yesterday: The FTC’s monopolization case against Amazon survives handily and fully intact. Despite early headlines to the contrary, this is a complete win for the agency. We’re going to trial. 2. The judge finds that the FTC’s evidence is sufficient to make a reasonable inference that Amazon is liable for monopolizing the market. This was true of the agency’s various claims under the Sherman Act.

1. It’s stunning that we’ve been unable to escape Visa’s stranglehold on debit payments — despite legislation mandating competition, despite disrupters like PayPal & Apple, despite loads of businesses eager to shed the crushing fees.

The DOJ’s monopolization case explains why. 2. First, just to note: The price of Visa's stranglehold is extraordinary. It amounts to billions in fees across the economy, simply for executing transactions that have near-zero costs.

Visa makes margins 83% in the US!

1. I'm so sorry to see @jbouie fall into a trap that big corporations & the GOP have long used to weaken the left. Since the 1980s, the right has been allowed to define who small businesses are, claim their voice, and use it to drive reactionary policies.
nytimes.com/2024/04/23/opi… 2. The left has not contested this version of small business politics. In fact, it has helped the right at every turn — as Bouie is doing in this piece. This is very bad strategy. It costs progressives and ultimately costs working people.

1. Many environmental groups began taking huge donations from the Waltons — the family that owns most of Walmart — starting about 15 yrs ago.

Today our fisheries, food, and water policies have been thoroughly corrupted.

civileats.com/walanthropy/ 2. You should make time to read @CivilEats amazing series on this. "Greenwashing" doesn't do justice to what Walmart is doing; it's much more sophisticated...

1. Amazon is in a world of legal hurt — I just read the less-redacted version of the FTC’s monopoly lawsuit. Lots of evidence of Amazon execs knowingly screwing consumers & killing competition, aware of their own wrong-doing.

A few highlights. First, destroying evidence. 2. Here’s an exec saying that blocking sellers from offering lower prices on other sites is "a dirty job, but we need to do it."

1. Weird to see the FTC’s Amazon lawsuit described as restrained, a pulled punch. It’s so not that. It strikes at the core of Amazon’s monopolization strategy.

Why the disconnect? One reason is that the commonly told story of Amazon’s strategy is the wrong story. 2. The story most people know is that Amazon spies on sellers and copies their products — that Amazon’s monopoly strategy is to exploit its control over the platform to advantage its own products and sales.

This story has been chased and told by media again & again.

1. For 40 years, we’ve allowed big chains like Walmart to use their financial hold over suppliers to wrest deep discounts for themselves — while driving up the prices that small retailers pay.

This was a huge mistake, and it’s costing us all.

nytimes.com/2023/05/29/opi… 2. Walmart & Kroger “have a handle on suppliers that I can’t touch,” explains Michael Gay, owner of Food Fresh, the only grocery store in a rural stretch of Georgia. With suppliers charging Fresh Food much higher prices, the store can’t come close to matching the chains’ prices.

It’s wild how quick libertarians are to use poor people as props to legitimize corporate power.

And also to erase their agency! Laws limiting dollar stores are the result of bottom-up efforts by people to protect their neighborhoods.
1/ Often people have to fight City Hall pretty hard to get these measures passed.

Their motivation is simple and universal: Who wants to live in a neighborhood that has dozens of dollar stores and no full-service grocery store? No one.
2/

Why are Dollar General and Family Dollar so lethal to grocery stores? Why does their arrival so often leave communities with no place to buy fresh food?

The chains use 3 predatory tactics to ensure they face no competition. 1/
ilsr.org/report-dollar-… First, they open lots of stores close together. In cities, this means dozens of dollar stores concentrated in particular areas. In small towns, especially in the South, you’ll often see 2-3 dollar stores at the main intersection. 2/
ilsr.org/new-maps-dolla…

1. If you live in California and buy something online from Best Buy, 50% of the local sales tax you pay goes not to local government, but to Best Buy.

Another 10% goes to a lawyer named Robert Cendejas.

bloomberg.com/news/features/… 2. It's not just Best Buy. Walmart, Apple, QVC, and others have all cute deals with cities where they get to pocket a huge share of the sales tax from e-commerce.

This is an impressive piece of reporting by @schwahoney

1. The FTC’s action today to ban noncompete clauses will not only benefit workers. It will also provide a major boost to small businesses and entrepreneurship in two ways. A quick thread.

https://twitter.com/linakhanFTC/status/1611025895388577792

2. First, non-compete agreements act as a kind of barrier-to-entry for would-be entrepreneurs by preventing workers from leaving their jobs to start their own, competing businesses.

1. Yesterday the DOJ won a major antitrust case. A judge blocked the merger of two publishing giants — Penguin Random House and Simon & Schuster.

The ruling is great news for authors and readers. It’s also a big deal because of what it says about where antitrust is headed. 2. Rather than focus on the merger’s effect on consumer prices, the government instead argued that the deal would harm authors. By merging, Penguin/Simon would cut the number of major publishers from 5 to 4. With fewer houses competing for new books, authors would be paid less.