Brown: Leftists out to slay ‘monster’ Amazon
With Americans still not buying “Bidenomics,” the federal government took the unusual step of celebrating economic misfortune after iRobot laid off one-third of its Massachusetts-based staff. The pink slips followed the scuttling of the company’s proposed merger with Amazon amid increasing pressure from the Federal Trade Commission and the European Commission.
In response, the FTC took a victory lap, declaring, “we are pleased that Amazon and iRobot have abandoned their proposed transaction.” The EC had launched an investigation into the merger, during which they admitted being, “in close contact” with the FTC.
See the problem? It is bad enough that the European-style mentality of the FTC, chaired by Lina Khan, a protege of Massachusetts Senator Elizabeth Warren, is stifling economic growth, and Americans are paying the price with their jobs. But in the alternative left-wing universe, this news is being celebrated.
From the outset, Warren and other leftists have opposed the Amazon-iRobot merger, claiming – without evidence – that it “would open up a new market to Amazon’s abuses.” The online marketplace – whose popular Prime feature is relied on by more than 7 in 10 Americans for convenient purchasing of everyday goods – has been at the top of the hit list for both Warren and Khan. Warren has described Amazon as a “monster,” while Khan rose to prominence for her law school dissertation calling for a break-up of the company, an objective she has continued pursuing at the FTC.
It isn’t the first time Khan has looked across the pond for inspiration. After a slate of bills targeting homegrown tech firms failed to gain traction in Washington, Khan dispatched taxpayer-funded officials to Europe to help implement the Digital Markets Act. The law, as described by The Wall Street Journal editorial board, is ostensibly aimed at helping European companies compete with American tech firms, “though Chinese companies like ByteDance may turn out to be the biggest beneficiaries.” The goal is always the same: use the levers of government to punish companies deemed too successful by politicians.
The foremost concern of Warren, Khan and those who subscribe to their worldview is never the consumer. It’s reordering the winners and losers according to their preferred line-up, and ensuring that companies that they don’t like face withering attacks from politicians and regulators.
For decades, under both Democratic and Republican administrations, the “consumer welfare standard” has been the north star of American antitrust law. Predictable and effective, the philosophy is as it sounds: focused on what is best for the consumer.
Not anymore. Khan has dismissed the consumer welfare standard as “somewhat narrow and outdated,” and called for a “holistic approach” that goes beyond just consumers. Anytime a liberal calls for a “holistic approach” from the government, hold on to your wallets, because it almost always translates to overreach with dire consequences.
Which brings us back to the 350 lost jobs at iRobot. In the aftermath, the company announced the “offshoring of non-core engineering functions to lower-cost regions.” In other words, those Massachusetts-based jobs are headed overseas.
Warren has fallen silent since the debacle, but Khan remains “pleased” with the outcome. Most Americans are probably unable to pick her out of a line-up, but Khan’s agency’s power is far-reaching. Consisting of five members, the FTC only has three members, all Democrats. It has been almost a year since the last Republican resigned, citing Khan’s abuse of power and disregard for the law. It’s incumbent on Senate Republicans to break through the current impasse and confirm both Republican appointees. Conservatives have an opportunity to finally restore a sense of checks and balance to this runaway agency and further delay only cedes more power to Khan’s activist agenda.
It’s no wonder polls show voters prefer the Republican frontrunner over the Biden Administration by more than 20 points when it comes to who can better handle the economy. While a lot of the noise out of D.C. can seem like just that, remember that some of these whacky policies can lead to painful real-life consequences.
A former United States Senator and Ambassador, Scott Brown is chair of the Competitiveness Coalition