New York could change the way America’s antitrust
The New York State Legislature is still in for a week and competition law is on the agenda. State Senator Michael Gianaris told DealBook he was confident there would be measures to “21st Century Antitrust Law”, A law he sponsored that would significantly change current standards. The overhaul is necessary, said Gianaris, because “we now have digital and technological economies that have turned everything upside down.”
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Passage of the law would place New York at the “vanguard” of a national movement, 15 state and national labor and policy groups written in a letter to lawmakers that DealBook is the first to report. Organizations claim that the law “Will remember many abusive tactics companies use against other companies and workers that are difficult to challenge under current antitrust law and its precedents.”
Market dominance would be assumed with a 40 percent market share. Currently, companies are qualified as dominant if they hold 70 to 90% of a market. “It’s not illegal to be dominant,” said Pat Garofalo of the American Economic Liberties Project, one of the groups that signed the letter. “It is just illegal to unfairly block others in the market. In law, an “abuse of dominance” standard would replace the current “consumer welfare” standard.
“Where New York City goes, often the rest of the country follows,” Garofalo said, and federal lawmakers might be motivated “if they see the ship leaving port.”
“The bill adopts a European standard to define a monopoly”, said Kathryn Wylde, head of the Partnership for New York City, a group that represents the city’s CEOs. , she said.
Yellen embarks on a tax ‘race to the bottom’
Treasury Secretary Janet Yellen is at Britain’s Group of 7 Finance Ministers meeting, which begins tomorrow, with one mission: to convince her global counterparts to adopt a global minimum tax and eliminate tax havens. It won’t be easy.
Yellen wants to end a “race to the bottom”, in which countries reduce their tax rates to encourage companies to relocate their headquarters and shift profits. This ties in with the Biden administration’s efforts to raise the corporate tax rate in the United States, which would be more effective if there were fewer low-tax jurisdictions competing to attract business.
The United States is also pushing. The Biden administration has unveiled 25% levies on some $ 2.1 billion in goods in response to efforts by other countries to tax America’s digital giants. Tariffs, however, have been suspended – for 180 days – while the United States negotiates with other countries.