Josh Hawley on Big Tech Antitrust: Empowering Private Enforcement and Curbing Monopolies

The Pillars of Antitrust Enforcement

• 🏛️ Antitrust enforcement is described as resting on three pillars: the federal government, state attorneys general, and private plaintiffs.
• ⚖️ Private enforcement is considered essential for a functional antitrust regime, allowing individuals to vindicate their economic rights.

Barriers to Private Antitrust Suits

• 🚫 Many companies, particularly in big tech, use user agreements with contracts of adhesion that force users to waive their right to sue in court or bring class action cases.
• 📉 This significantly diminishes the ability of private citizens to bring meaningful antitrust suits.
• 🧑‍⚖️ Forced arbitration clauses are a major hurdle, making it more difficult for individuals to seek redress.

The Case for Legislative Action

• 📜 Congress should legislate on this topic to give antitrust enforcers more tools and allow private litigants to get into court.
• 🤝 Stopping forced arbitration clauses in the antitrust context is predicted to lead to significantly more private enforcement.
• 💰 While class action suits are effective for monetary damages, federal government action is crucial for injunctive and equitable relief, such as opening up markets.

Beyond Big Tech: Antitrust in Other Sectors

• 🏭 Competition concerns seen in the tech sector are common in many other sectors, requiring enforcement across the entire economy.
• 🥩 Examples include the beef processing industry, where four companies control over 80% of the market, leading to plant closures, cancelled contracts, and reduced farmer payments.
• 📈 This consolidation results in higher prices for consumers and lower payments for producers, with monopolists being the primary beneficiaries.
• 🎯 The FTC and Department of Justice can take action against such monopolistic practices, though specific divisions handle different aspects of the supply chain.