FOR IMMEDIATE RELEASE
Contact: Virgil McDill, vmcdill@ilsr.org, 202.294.9187
Small Business Coalition Urges Support for Federal Big Tech Bills
Statements below from independent business associations and small business owners reflect strong support for the federal action to address concentrated corporate power.
The House Judiciary Committee will consider the Big Tech bills on Wednesday.
WASHINGTON, D.C. (June 18, 2021) - A coalition of independent businesses urged lawmakers to back new legislation being considered by the House Judiciary Committee that will curb the outsized power of the Big Tech firms —Amazon, Apple, Google, and Facebook — and allow small businesses to compete and succeed online.
The Small Business Rising coalition, which formed earlier this year, is comprised of more than 25 independent business organizations representing more than 150,000 independent businesses owners.
The bipartisan legislative package includes several policy provisions that Small Business Rising has been advocating for:
A structural separation bill. Breaking up Amazon is essential to stopping its abuse of independent businesses. The bill includes a clear rule that a company may not own both a dominant platform and any business lines that sell products or services on that platform.
A nondiscrimination bill that includes important provisions to protect third-party sellers and other businesses from predatory behavior by Amazon.
And a merger bill that creates a high hurdle that the four tech giants must overcome to be allowed to acquire other companies.
Members of Small Business Rising expressed their support for Congressional action to address market power abuses by dominant corporations.
“We literally help build communities across the country, and if the 45,000 independently owned hardware stores, home centers, lumberyards, paint and decorating retailers businesses are going to continue to be a part of our communities, it is imperative that they’re able to compete on a level playing field,” said Dan Tratensek, Chief Operating Officer of the North American Hardware and Paint Association (NHPA). “That’s why NHPA feels that the introduction of several recent pieces of legislation targeting unfair business practices are a major step forward in creating a fair and equitable market place where small business owners can compete. We see this bipartisan legislation as an opportunity to stop the runaway market advantages that big corporations and online sellers have benefitted from at the expense of Main Street America.”
“Concentrated market power is the single biggest threat facing independent businesses like mine, and the introduction of this legislation is a major step forward in addressing the outsized power and destructive harm of companies like Amazon,” said Gina Schaefer, Owner & Chief Localist A Few Cool Hardware Stores. “In the past several years, thousands of small businesses have closed and thousands more are struggling to stay afloat, while Amazon has seen its dominance grow. It’s a relief to see Congress stepping up and bringing some basic fairness back to our economy.”
“We are heartened to see bipartisan members in the House take real action on legislation to update and better enforce antitrust policy,” said Christopher Jones, Senior Vice President of Government Relations and Counsel at the National Grocers Association (NGA). “While these bills are focused on the technology marketplace, they touch on the biggest issues NGA’s members face in the grocery industry: consolidation, buyer power, and economic discrimination. We hope these bills are just the start of Congress’ efforts to rein in anticompetitive abuses by dominant firms as NGA continues to push for scrutiny of food retail power buyers. Antitrust enforcement and reform would mean more support for local economies and small and independent businesses, more innovation across sectors, and more choices for consumers of all income levels. We look forward to working with the House and the Senate to reinvigorate the antitrust laws for the first time in decades.”
“Everyone likes competition – it keeps us all on our toes. However, when any business begins to grow by buying up the competition, then competition ceases to exist,” said Sue Warfield, Interim President of the American Specialty Toy Retailing Association (ASTRA). “Not only does this mean fewer independent businesses, it also means the loss of community involvement and support by the independent businesses that often support local schools, teams, and their tax base.”
“Amazon keeps charging third-party sellers more and more to sell on its Marketplace because they’re the only game in town and they feel that sellers don’t have another good option for reaching their customers,” said David Guernsey, President and CEO, Guernsey, Inc. “By including a rule that the owner of the platform can’t also sell on that platform, this legislation will help thousands of small business owners who have been forced to compete against Amazon on its own platform. This levels the playing field for sellers to compete fairly.”
“Our members have been battling Amazon for years now,” said Mike Tucker, Executive Director of the Independent Office Products and Furniture Dealers Association. “In the beginning, there was an interest among dealers in being a reseller on their marketplace. But when Amazon Business was introduced, it became apparent that Amazon was not looking for partners, but rather a gateway to the end customers, where they could use their abusive anti-competitive tactics to dominate the market. I believe Congress now understands the extent of this carnage and pray they will take strong and effective measures to restore a free and fair playing field.”
“We need Congress to step in and stand up to giant businesses like Amazon that are undermining our communities,” said Yelake Meseretu, Managing Director at U.S. Office Solutions.
"The hard work of the U.S. House Judiciary Committee’s Subcommittee on Antitrust has shed a bright light on the toll that the unchecked power of hyper-dominant corporations has taken on innovation, job creation, consumer choice, and the economic health of local communities,” said Allison K Hill, CEO of the American Booksellers Association. “The bipartisan bills will put into law the reforms, safeguards, and enforcement necessary for a vibrant economy moving forward. These bills will also ensure that the long tradition of fair play and equity in America's antitrust enforcement meets the significant challenges of the 21st century."
“Amazon makes it nearly impossible for small business owners like myself to make a profit selling on their Marketplace,” said Bill Stewart, owner of LI Toy & Game in Kings Park, New York. “They ask for documentation they know you can't provide. They stock a product you're selling when they see it is popular and profitable, and then undercut your price. They pull your products off the site for no legitimate reason. Because Amazon controls so much of the online selling market share, we don't have a choice and need to be there. Small business owners need this kind of legislation so that our government has better tools to stand up to monopoly bullies like Amazon. They treat small business owners poorly because they know we don’t have the power it takes to stand up to them.”
“Local First Arizona represents over 3,000 unique small businesses across the state. An important part of our mission is educating people about the interconnectedness of our state’s economy - about the importance of buying local and supporting our home town businesses.” Thomas Barr, Vice President of Business Development at Local First Arizona. “But when it comes to a company as dominant as Amazon, local solutions like those just aren’t enough. That’s why we need Congress to step in and help level the playing field for our independent businesses.”
“For too long, Main Street has felt the impact of the unabated growth and uneven playing field of large monopolies,” said Stephen Michael, Executive Director of the Main Street Alliance. “The consolidation of corporate power not only limits competition, but also squeezes small businesses out of supply chains and other core economic access points. Main Street Alliance small businesses applaud the package of antitrust legislation introduced today. For policymakers interested in a robust, competitive small business economy, passing new anti-monopoly laws must be a key federal priority in 2021. Antitrust regulation is one place where we can look to build a more resilient and fair economy coming out of the pandemic.”
“Amazon can sell books at a loss because they see books as loss-leaders. If I did that, I’d be out of business,” said Danny Caine, Author and Owner of The Raven Book Store. “That’s predatory behavior and it’s already cost our country thousands of small businesses who couldn’t compete in this rigged system. I’m glad to see Congress take action on this by allowing small businesses harmed by predatory behavior to pursue a private-right-of-action without having to rely on enforcers to act.”