Why antimonopoly policy is so crucial to building a better future

Hi Everyone and Welcome Back! 

This week on The Nick Halaris Show we are featuring Barry Lynn, the Executive Director of the Open Markets Institute, an organization dedicated to using competition policy to build stronger democracies, more just and equitable societies, and more innovative and sustainable economies. Barry, a highly-regarded journalist, is also the author of 3 important books and a sought-after advisor for politicians on both sides of the aisle concerned about things like supply-chain fragility and the extreme concentration of economic power.  

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I wanted to have Barry on the show to highlight the important work he’s doing at the Open Markets Institute and to try to get a sense of what we might do to improve the competitive landscape in our economy. You don’t have to do much looking around to realize that we have a monopoly problem in our economy. A few very large and powerful companies have come to dominate economic life in almost every major industry. This concentration of power has introduced fragility into our system—as we saw during the COVID lockdown era—and has contributed to other problems like labor market stagnation and wealth inequality. It’s even harmed our democratic processes as well. Tune in to this important episode to learn: 

• How the 1999 Earthquake in Taiwan and the subsequent disruptions in the semiconductor industry woke Barry up to the concentration risks in the global economy

• The huge risks to our economy and our democracy from the extreme concentration of economic power in the age of AI

• How it came to be that, until very recently, there wasn’t a single antitrust case filed in the US in several decades

• Why anti-monopoly enforcement is so crucial for creating a better, more efficient, and more equitable economy

• The positive steps taken by the Biden administration, with the support of many prominent Republicans, in stepping up antitrust enforcement

  &

• Much, much more

Stay tuned to the end to learn why Barry remains optimistic in the face of these challenges and believes that just by relearning how to use the tools of the past we can make a huge difference in shaping a more competitive future.

As always, I hope you all enjoy this episode. Thanks for tuning in! 

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Summary

Barry Lynn, the executive director of the Open Markets Institute, discusses the concentration of economic power and the harms it causes. The Open Markets Institute is focused on addressing this issue and finding solutions. They gather information, tell stories, and advocate for change. Lynn became interested in this topic after witnessing the extreme concentration of industrial capacity following an earthquake in Taiwan in 1999. He realized that competition policy needed to be reevaluated. The Biden administration has made significant strides in addressing concentration of power, but there is still more work to be done. The conversation explores the concentration of power in AI and technology companies, the need for antitrust reform, and the challenges faced in addressing this issue. It highlights the intentional use of AI by corporations like Google, Microsoft, and Amazon to further concentrate power and the bipartisan resistance to reform in Congress. The conversation also touches on the relationship between economic power and political influence, the role of regulation in ensuring fair competition, and the potential consequences of not addressing these issues. The vision for Open Markets is to use existing laws and regulations to fight against monopolistic practices and reclaim control of the future.

Keywords

concentration of economic power, Open Markets Institute, solutions, journalism, competition policy, industrial capacity, Biden administration, antitrust enforcement, monopolies, EU, AI, AI power, concentration of power, antitrust reform, technology companies, political influence, regulation, fair competition, monopolistic practices

Takeaways

• The Open Markets Institute focuses on the concentration of economic power and its harms, as well as finding solutions.

• Barry Lynn became interested in this topic after witnessing the extreme concentration of industrial capacity following an earthquake in Taiwan in 1999.

• The Biden administration has made significant strides in addressing concentration of power, but there is still more work to be done.

• Antitrust enforcement has been seen as a cost of doing business for large corporations, but efforts are being made to change this and impose structural fixes.

• The economy is evolving rapidly, and new threats such as AI need to be addressed to prevent further concentration of power. AI is being used intentionally by corporations like Google, Microsoft, and Amazon to concentrate power in their hands and make themselves more powerful vis-a-vis other companies and users.

• The Department of Justice, the Federal Trade Commission, and enforcers in Europe and the UK understand the issue of AI concentration of power, but there is bipartisan resistance to reform in Congress.

• There is a need to regulate technology companies to ensure that their power is used for good and not bad, and to limit their ability to manipulate and extract value from users.

• The existing laws and regulations in the US provide a strong foundation to fight against monopolistic practices and reclaim control of the future.

• The future belongs to the people, and by relearning how to use the tools of the past, it is possible to take back control and create a better future.

Titles

• The Evolution of Competition Policy

• Challenges in Antitrust Enforcement Reclaiming Control of the Future

• Using Existing Laws to Fight Monopolistic Practices

Sound Bites

• "Tell me more about the Open Markets Institute. What are you all focused on there?"

• "How did you come to believe this is such an important issue and choose to dedicate your life to it?"

• "What is the work that still needs to be done?"

• "AI is being used to further concentrate power in the hands of Google, Microsoft, and Amazon especially."

• "There's a group of Republican and Democrats who are working together to block actual reform."

• "The whole idea of a unicorn is to carve out a monopoly and then make it as big as you possibly can."

Chapters

00:00 Introduction to Barry Lynn and the Open Markets Institute

02:57 Barry Lynn's Interest in Concentration of Economic Power

09:45 The Biden Administration's Efforts to Address Concentration of Power

24:19 Addressing New Threats: AI and Concentration of Power

27:55 The Concentration of AI Power in Technology Companies

30:06 The Need for Antitrust Reform and Resistance in Congress

32:10 The Relationship Between Economic Power and Political Influence

34:39 Regulation to Ensure Fair Competition and Limit Manipulation

53:37 Reclaiming Control of the Future