Coalition Representing More Than 150,000 Small Businesses Responds to Antitrust Legislation Unveiled Today in the U.S. Senate  

***Statement***

FOR IMMEDIATE RELEASE
Contact: Virgil McDill, vmcdill@ilsr.org, 202.294.9187

WASHINGTON, D.C. (October 14, 2021) - The following statement was issued today by Small Business Rising, a coalition of over twenty national and local associations representing over 150,000 small and independent businesses, in response to legislation released today in the United States Senate aimed at addressing the concentrated corporate power of the Big Tech companies. 

“We applaud Senator Klobuchar’s leadership on antitrust issues and her focus on the ways America’s monopoly problem negatively affects small businesses across the country. The legislation released today by Senator Klobuchar and Senator Grassley, along with a bipartisan group of co-sponsors, will move this conversation forward and ensure that Washington’s recent focus on antitrust issues continues.

“Concentrated market power remains the single biggest threat facing independent, small businesses. America’s small businesses are the backbone of our local economies and our local communities — and, yet, every day we lose more independent businesses because of the abusive and anti-competitive tactics of monopolistic corporations like Amazon. 

“We look forward to working with Senator Klobuchar and Senator Grassley to strengthen key parts of this legislation, and ensure the Senate adopts structural separation legislation, along the lines that passed in the House Judiciary Committee, to remove the underlying conflicts of interest and incentives that give rise to their anti-competitive behavior in the first place.”

Comment from Douglas Mrdeza
CEO and Founder, Top Shelf Brands, and member of Small Business Rising

“As a third-party seller on Amazon’s platform, I experienced the hardship and pain that comes when Amazon engages in anticompetitive practices, from stealing trade secrets to engaging in predatory pricing. After experiencing these tactics first-hand, I’m convinced that structural separation must be part of any legislative solution aimed at Amazon. The company’s ‘blending’ of its various lines of business lies at the root of all the problems small businesses have with Amazon, and only breaking these businesses apart and making them stand and compete on their own will address the problem.


“As I saw first-hand, Amazon presents itself as a partner, but in reality, it’s a competitor that steals proprietary information and uses it to put third-party sellers out of business. This bipartisan Senate legislation is a welcome first step. Our Small Business Rising coalition looks forward to working with the Judiciary Committee on the legislation we need to ensure small businesses are allowed to compete online.”

About Small Business Rising

Small Business Rising is a coalition of over twenty national and local associations representing over 150,000 small and independent businesses from all corners of the country, united around the goals of reining in monopoly power and urging policymakers to build an economy that is more prosperous, equitable, and innovative.

Small businesses need strong leaders at the DOJ — stand up to #BigTech.


Independent Business Groups Urge Swift Confirmation for Jonathan Kanter to the DOJ Antitrust Division

October 5, 2021

Small businesses need strong leaders at the DOJ — stand up to #BigTech.


Small Business Rising coalition partners, representing over 150,000 businesses across the country, submitted a letter to the U.S. Senate Committee on the Judiciary expressing strong support of Jonathan Kanter’s nomination as Assistant Attorney General for the Antitrust Division at the Department of Justice (DOJ). The letter urges Chair Durbin and Ranking Member Grassley to lead a swift confirmation process through the Judiciary Committee.

Mr. Kanter is an obvious choice to lead the DOJ’s Antitrust Division. His deep legal experience and longstanding record advocating for aggressive action make him an excellent choice to work alongside Lina Khan at the Federal Trade Commission to rein in corporations wielding monopoly power over their smaller competitors. Concentrated market power is the biggest threat facing independent businesses, which has taken a particular toll on businesses in rural communities and businesses owned by Black, Indigenous, people of color and women. With Jonathan Kanter at the DOJ, it will be a new day to restore enforcement of our country’s antitrust laws and fair competition for independent and small businesses.

Read the full letter here.


Small Business Rising Responds to Amazon's Claims About Big Tech Bills

FOR IMMEDIATE RELEASE

Contact: Virgil McDill, vmcdill@ilsr.org, 202.294.9187

The following statement was issued by Small Business Rising in response to Amazon’s recent emails to 3rd party sellers on its site offering to meet with them and claiming that the federal Big Tech bills could lead Amazon to take actions that could harm their businesses.


“When Amazon suspends a seller’s account or disrupts their business without cause or warning, the business owners can’t get anyone at Amazon on the phone and are routed to endless automated email loops while their business goes down the drain. So it’s pretty galling that Amazon suddenly has time for one-on-one calls. 


“Small businesses urgently need Congress to pass these bills. Without this legislation, Amazon will continue to use its control over market access to prey on small businesses, saddling them with steep fees to reach their customers while stealing their best product ideas.   


“Once again, Amazon is using its outsized market power to threaten and strong-arm small businesses in order to maintain its stranglehold over them. We need this legislation to level the playing field and rein in Amazon’s anticompetitive and bullying behavior”



About Small Business Rising

Small Business Rising is a coalition of over twenty national and local associations representing over 150,000 small and independent businesses from all corners of the country, united around the goals of reining in monopoly power and urging policymakers to build an economy that is more prosperous, equitable, and innovative.

Hardware Group Says Big Tech Bills are an Urgent Opportunity for Small Businesses

In Washington and at the local level, we are at a pivotal moment for small businesses. There has been an incredible shift in the number of federal policymakers and local communities that are thinking deeply about independent, small businessess as a key part of how we have a vibrant economy and healthy communities.

Listen to Stacy Mitchell’s conversation with Dan Tratensek of the North American Hardware and Paint Association, as she explains this historic moment.

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On the Taking Care of Business podcast, Stacy distills the new set of antitrust bills the House Judiciary committee passed that would break up Amazon and other big tech companies; the mandate for protecting small businesses, farmers, and ranchers that the new FTC chair, Lina Khan, brings to the Federal Trade Commission; and President’s Biden’s groundbreaking executive order to reverse corporate concentration.

They also talked about local governments that are using American Rescue Plan funding to reverse course on how they approach local economic development.

Small business owners, using their political voices, have helped make this moment possible. We have come so far, but the next weeks and months will be critical for moving the House’s historic antitrust legislation to break up and regulate Amazon. Lend your voice by going to Small Business Rising, a coaltion of 25 independent business organizations representing more than 150,000 independent businesses owners.

You can listen to the podcast here.

Small Business Rising Applauds White House Executive Order to Promote Competition

FOR IMMEDIATE RELEASE
Contact: Virgil McDill, vmcdill@ilsr.org, 202.294.9187

Small Business Rising Applauds White House Executive Order to Promote Competition 

The coalition of 20+ business groups urges federal agencies to act swiftly to carry out the order and ensure independent businesses have the opportunity to compete.

WASHINGTON, D.C. (July 9, 2021) -- The following statement was issued today by Small Business Rising, a coalition of over twenty national and local associations representing over 150,000 small and independent businesses, in response to the White House’s executive order aimed at reducing corporate concentration and expanding opportunity for independent businesses, farmers, workers, and consumers.

“Today’s executive order is another sign that federal policymakers are serious about restoring competition and leveling the playing field for independent businesses, and we applaud the Biden Administration for taking this important step forward. 

“This executive order will help to reduce market concentration, stop monopoly abuses, expand opportunities for small businesses, and strengthen local economies.

“Importantly, the order directs the Department of Justice to strengthen antitrust enforcement and encourages the Federal Trade Commission to establish rules barring dominant internet platforms from exploiting independent businesses.

“The order also directs federal agencies to reduce concentration and promote competition through their procurement and spending decisions. It includes important provisions to address concentrated power in the pharmaceutical and healthcare industries, and it directs the Department of Agriculture to level the playing field for farmers and ranchers, and dedicate funds to support local and regional food systems.

“Concentrated market power has long been the single biggest threat facing America’s small and  independent businesses. Coming on the heels of landmark antitrust legislation that passed the House Judiciary Committee last month, it’s clear that policymakers at both ends of Pennsylvania Avenue are finally intent on challenging corporate power. 

“After decades of lax federal enforcement of our nation’s antitrust laws, we are heartened to see federal officials standing up for the independent businesses that are a vital part of our economy and our local communities.”  

About Small Business Rising
Small Business Rising is a coalition of over twenty national and local associations representing over 150,000 small and independent businesses from all corners of the country, united around the goals of reining in monopoly power and urging policymakers to build an economy that is more prosperous, equitable, and innovative.

Statement On House Judiciary Committee’s Vote Approving Legislation to Break Up and Rein In Big Tech

WASHINGTON, D.C. (June 24, 2021) — Small Business Rising issued the following statement in response to the House Judiciary Committee’s vote approving a sweeping package of antitrust legislation to break up and rein in the four Big Tech companies: Amazon, Apple, Google, and Facebook.

“We’re thrilled that the House Judiciary Committee passed sweeping bipartisan legislation to rein in Big Tech. The package included one of our top priorities: legislation to break up Amazon and the other Big Tech companies. It also included a bill to block some of Amazon’s abusive practices against businesses that depend on its platforms and another measure that would restrict Big Tech acquisitions.

“Small Business Rising members and partners worked hard to make sure Committee Members heard from small businesses. We applaud Chairman Cicilline, Ranking Member Buck, Congresswoman Jayapal, and other committee members for standing up to Amazon and not letting Big Tech lobbyists drown out our voices.

“We look forward to continuing to work closely with Congress to create vibrant, competitive online markets and reinvigorate our antitrust laws.”

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Small Business Rising Response to Amazon Statement on Antitrust Bills

FOR IMMEDIATE RELEASE
Contact: Virgil McDill, vmcdill@ilsr.org, 202.294.9187

Small Business Rising Response to Amazon Statement on Antitrust Bills

“Amazon executives are panicking because they know these bills will break the company's stranglehold on small businesses”


WASHINGTON, D.C. (June 22, 2021) -  In response to an Amazon statement opposing the push for sweeping antitrust reforms in Congress, the Institute for Local Self-Reliance released the following statement from Co-Director Stacy Mitchell and Doug Mrdeza, the Chief Executive Officer of Top Shelf Brands, a barber supply company and Amazon third-party seller:

Stacy Mitchell, Co-Director, Institute for Local Self-Reliance: 

“Amazon executives are panicking because they know these bills will break the company's stranglehold on small businesses and consumers, and force it to compete on a level playing field. These bills are the result of an extensive, 15-month long investigation that demonstrated beyond a doubt that Amazon used its monopoly power to unfairly advantage its own products and line its pockets with seller fees at the expense of entrepreneurs and innovation. 

By breaking up Amazon, we can end these abuses once and for all and restore vital dynamism and innovation to the economy."

Doug Mrdeza, CEO, Top Shelf Brands, and a member of the Small Business Rising coalition:

“Amazon likes to say that it’s helping small businesses, but as someone who’s experienced the hardship and pain that comes with trying to do business on Amazon, I can tell you that the opposite is true. 

I built a company that was a top seller on Amazon, employed more than 40 people and was named as one of America’s fastest growing companies. But Amazon began forcing us to accept ever-higher fees that cut into our revenue and new conditions that made it hard to grow our business - everything from higher charges for warehouse space to unilaterally changing our advertising approach. Today, I’m the single remaining employee at my company, drowned in debt I personally guaranteed. 

I know I’m far from the only business owner to have this experience. In fact, the overwhelming majority of third-party sellers say that Amazon is a threat to their business. It’s why we badly need to pass legislation that would curb Amazon’s power - and it’s why we should be deeply skeptical of Amazon when they say they support small businesses.”

Earlier this week, ILSR released a fact sheet explaining how Amazon exploits and undermines small businesses, including survey data that shows three out of four of independent retailers ranked Amazon’s dominance as a major threat to their survival, and only 11 percent of those selling on its site described their experience as successful. 

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Small Business Coalition Urges Support for Federal Big Tech Bills

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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.”