Small Business Rising Joins New Coalition Calling for Passage of Landmark Antitrust Bill in New York State

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

Small Business Rising Joins New Coalition Calling for Passage of
Landmark Antitrust Bill in New York State

WASHINGTON, D.C. (November 10, 2021) - Small Business Rising is joining with a diverse new coalition of unions, small businesses, and immigrant and community organizations in support of groundbreaking antitrust legislation that will be considered by the New York State Legislature when it convenes in January. The new coalition, called New Yorkers for a Fair Economy, held an event today in support of the Twenty-First Century Antitrust Act, a bill that would put New York at the forefront of antitrust enforcement in the nation, and would finally give New York’s small business owners the opportunity to compete fairly with dominant corporations.

The 21st Century Antitrust Act, sponsored by Senate Deputy Majority Leader Michael Gianaris and Assemblymember Jeffrey Dinowitz, will update inadequate antitrust laws to shift the dominant power of big corporations back to the hands of workers, small businesses, and communities. The bill passed the New York State Senate earlier this year, and was being considered by the State Assembly when the legislative session ended.

The sweeping reforms would simplify and strengthen New York’s antimonopoly laws, and would expand what kinds of harmful conduct the law can address. Among other measures, the Twenty-First Century Antitrust Act would:  

  • Lead to clear, bright-line rules prohibiting abusive and anti-competitive tactics by dominant corporations

  • Place New York at the cutting edge of combating monopolies and curbing corporate power by fundamentally redefining what constitutes dominance by a single firm

  • Allow lawsuits against corporations that act unilaterally to stifle competition — an expansion of current law which defines anticompetitive conduct as occurring only when two or more companies are collaborating or conspiring to restrain competition

Small Business Rising, a coalition of more than two dozen organizations representing more than 150,000 independent businesses, was formed this year to urge policymakers to rein in monopoly power and inject fairness into a system that has long left small businesses at a competitive disadvantage.

Members of Small Business Rising expressed their support for the 21st Century Antitrust Act. 

“Monopoly power is the single biggest threat facing small, independent businesses. Misguided court decisions have warped federal antitrust policy, allowing big, monopolistic corporations to engage in predatory and abusive tactics that are harming local businesses and stripping jobs and wealth from communities across the state,” said Stacy Mitchell, co-director of the Institute for Local Self-Reliance and a founding member of Small Business Rising. “With this bill, New York is leading the way in addressing one of the most pressing issues of our time. By establishing clear rules to stop dominant corporations from abusing their power, this legislation will safeguard democracy and create new vitality in struggling rural and urban areas alike.”

"Corporate monopolization is one of the biggest threats to a thriving small business economy,” said Didier Trinh, Director of Policy and Political Impact at the Main Street Alliance. “With the 21st Century Antitrust Act, New York small businesses will have simple and effective tools to combat anti-competitive tactics by corporations. As we continue to come out of the pandemic, which accelerated corporate consolidation and advantaged big businesses over small, now is the time to ensure we can build back a more resilient, vibrant, competitive local economy. Antitrust law is essential to that goal."

“New Yorkers love how local businesses contribute to the uniqueness of their neighborhoods and to the vitality of the entire city, but monopolies like Amazon continue to threaten independent businesses,” said Natasha Amott, owner of Whisk kitchen store in New York City.  “We urgently need this legislation to curb monopolistic behavior in the retail market in order to give local businesses a chance to compete.”

"Our local small independent businesses are the backbone of our communities," said Bob Giordano, President/Founder of the Westchester Independent Business Alliance. "They provide character and individuality while keeping jobs and money in the local community. The Big Box stores and dominant online retailers do none of those things. That's why the Westchester Independent Business Alliance is supporting the 21st Century Antitrust Act. Our small businesses do so much for our communities, but too often the deck is stacked in favor of dominant companies like Amazon, big box stores and national and regional chains. We need this legislation to give small, independent businesses a fair shot at competing."

"We believe the Twenty-First Century Antitrust Act is a strong first step in renewing antitrust enforcement and leveling the playing field for the thousands of independent businesses in New York," said Allison K Hill, Chief Executive Officer of the American Booksellers Association. "For too long, monopolistic companies such as Amazon have wielded their market dominance and concentrated power to box out small businesses and harm consumers. Senator Gianaris's bill passed the Senate last year, and we're pushing for it to clear the final hurdle this year to help restore free and fair competition in New York State."

"Our members have been battling Amazon for years now,” said Mike Tucker Executive Director, Independent Office Products and Furniture Dealers Association. “In the beginning they were considered a resource for hard-to-get products that dealers could add to their mix. 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 many lawmakers at the state and federal level now understand the extent of this carnage and pray they will take strong and effective measures to restore a free and fair playing field."

“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 will stock a product you're selling when they see it is popular and profitable, and then undercut your price. They charge the highest marketplace fees in the industry, and also take the longest to disburse your funds. 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.”

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