New York has a monopoly problem. Across the state, independent businesses are being harmed by the outsized political and economic power amassed by a few large corporations.
In Crain’s New York Business, Katy Milani, Senior Policy Advocate with the Institute for Local Self-Reliance and Director of Small Business Rising, and Sue Warfield, President of the American Specialty Toy Retailing Association, explain that the proposed 21st Century Antitrust Act would level the playing field for small businesses. They also share the story of Bill Stewart, owner of LI Toy and Game and member of Small Business Rising, who has experienced first-hand the negative impact of Amazon’s monopoly power.
For far too long, New York's small-business owners have been competing on an uneven playing field. Lax enforcement and antiquated state and federal antitrust laws have allowed monopolies, such as Amazon and others, to amass unprecedented economic and political power, dwarfing the ability of independent business owners to compete fairly and leading to waves of closures. Amazon's rise coincides with a sharp decline in the number of independent businesses across the country; between 2007 and 2017, the number of small retailers fell by 65,000.
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“Amazon makes it nearly impossible for small-business owners like myself to make a profit selling on their Marketplace," Stewart said recently. Charging exorbitant and ever-growing fees is just one way Amazon exploits independent sellers on its platform. Stewart shared some of his experiences, including Amazon's copying product listings and undercutting his prices, pulling listings with no warning and withholding funds from sales.
If enacted, the 21st Century Antitrust Act would modernize and reform New York's antitrust laws and create a pathway for clear rules of road about what conduct is and isn't illegal. It would ensure that small businesses have an opportunity to be heard in court by enabling businesses to band together in class-action lawsuits against monopolists for their abusive conduct.