This podcast episode delves into the recent lawsuit by the Federal Trade Commission against Amazon, accusing the company of engaging in monopolistic practices and anti-competitive behavior. It traces the history of monopolies in the United States, starting with John D. Rockefeller in the oil industry during the 1860s. The episode highlights the Standard Oil case, which resulted in the company's breakup and established a precedent for government intervention to ensure fair competition. Additionally, it examines the resistance to government intervention led by Judge Robert Bork and how it changed the perception of antitrust laws. The episode introduces the consumer welfare standard and its impact on antitrust regulation, particularly focusing on Bork's influence. Finally, it discusses the current battle against tech giants like Amazon, emphasizing concerns about their monopoly power and the implications for both consumers and competition.
Takeaways
• The Federal Trade Commission has filed a lawsuit against Amazon, alleging monopoly practices and anti-competitive tactics.
• The history of breaking up big companies in America, starting with the oil industry boom in the 1860s, serves as a backdrop for understanding the context of the Amazon lawsuit.
• Ida Tarbell's investigative journalism exposed the monopolistic practices of the oil industry, particularly the Standard Oil company led by John D. Rockefeller.
• The Standard Oil case resulted in the breakup of the company and set a precedent for government intervention in the free market to ensure competition.
• Judge Robert Bork played a significant role in challenging the prevailing viewpoint of pro-little guy and advocating for limited government intervention in the market.
• Bork's ideas led to a shift in the perception of antitrust laws, with a focus on promoting consumer welfare and protecting competition.
• The consumer welfare standard became the guiding principle in interpreting and applying antitrust law, favoring consumer welfare over protecting competitors.
• The rise of big tech companies like Google, Facebook, and Amazon is seen as a consequence of the Bork revolution and raises concerns about monopoly power.
• Lena Khan, Chair of the FTC, is leading the battle against big tech companies and their market power, drawing parallels to the challenges faced during the Gilded Age.
