Showing archive for: “Labor Law”
‘Production, Information Costs, and Economic Organization,’ by Armen Alchian & Harold Demsetz
In “Production, Information Costs, and Economic Organization,” Armen Alchian and Harold Demsetz ask when joint production works better inside a firm than across markets, and what form that firm takes. Their answers turn on a measurement problem: When people produce together, total output doesn’t reveal what each person contributed. Measuring individual contributions is costly, and ... ‘Production, Information Costs, and Economic Organization,’ by Armen Alchian & Harold Demsetz
Prime Targets: Amazon, No-Poach Rules, and the Limits of Antitrust
The State of New Jersey’s antitrust case against Amazon begins with a serious allegation: that Amazon restricted drivers from moving among competing delivery contractors. But the state’s complaint goes much farther. It argues that Amazon’s entire Delivery Service Partner (DSP) system unlawfully gives the company monopsony power over both the small businesses that deliver its ... Prime Targets: Amazon, No-Poach Rules, and the Limits of Antitrust
Who, Exactly, Does New York City’s Delivery Protection Act Protect?
New York City has found an unlikely culprit for unsafe deliveries: the name on a driver’s paycheck. Its proposed cure would force Amazon to bring thousands of drivers in-house. The evidence that this would improve safety is thin. The implications for union organizing are anything but. Last month, New York City Mayor Zohran Mamdani formally ... Who, Exactly, Does New York City’s Delivery Protection Act Protect?
Cartels With Benefits: The Trouble With Extending Labor’s Antitrust Exemption
Antitrust law’s usual instruction to competitors who agree on price is admirably brief: Don’t. Labor law makes a deliberate exception for employees who bargain collectively. Advocates now want that exception to cover at least some independent contractors, including rideshare drivers, truck owner-operators, consultants, and other small-business owners. The proposal may sound like a tidy way ... Cartels With Benefits: The Trouble With Extending Labor’s Antitrust Exemption
Killer Theories and Acqui-Hire Alibis
Antitrust agencies have a habit of giving new labels to old anxieties. In artificial intelligence, the latest worry is that partnerships between large technology firms and startups are not partnerships at all, but mergers in clever disguises. In the first article in this series, we examined how Brazil’s Administrative Council for Economic Defense (CADE) has ... Killer Theories and Acqui-Hire Alibis
Discretion Without Guardrails: Canada’s Competition Experiment
When competition authorities expand their legal toolkits, the most consequential policy choices often do not appear in the statute. They emerge later—in enforcement guidelines, presumptions, and priorities that determine how aggressively agencies will deploy new powers. Canada now finds itself squarely in that phase. Recent amendments to the Competition Act illustrate the shift. Reforms enacted ... Discretion Without Guardrails: Canada’s Competition Experiment
Curbing Monopoly Union Abuses Benefits Workers and the Economy
U.S. labor unions have long enjoyed an antitrust exemption covering collective bargaining and related activities. But this exemption does not extend to anticompetitive monopolization undertaken by unions. Recent economic research demonstrates that the creation of monopoly unions may actually harm workers, in addition to undermining free-market competition. The administration may wish to consider a new ... Curbing Monopoly Union Abuses Benefits Workers and the Economy
Claims of Monopsony in the Wireless Industry Don’t Add Up
A recent report prepared for NATE: The Communications Infrastructure Contractors Association by the Brattle Group paints a troubling picture of the U.S. wireless-infrastructure industry. But a closer look at the report’s narrative demonstrates that it is built on faulty premises, misapplied economics, and a failure to connect the dots. While the report serves as a ... Claims of Monopsony in the Wireless Industry Don’t Add Up
Antitrust Applies to Unions as Well as to Employers
The Trump administration has signaled its interest in applying antitrust law to protect workers from harm. Business conduct that distorts competition in labor markets is, indeed, covered by the antitrust laws, and various labor-related antitrust-enforcement initiatives have been undertaken in recent years. In contrast, labor-union collective bargaining to improve wages and conditions of employment is ... Antitrust Applies to Unions as Well as to Employers
Last-Minute Biden Labor-Antitrust Initiatives May ‘Have No Future’
The Federal Trade Commission (FTC) issued an unprecedented policy statement Jan. 14 titled “Exemption of Protected Labor Activity by Workers from Antitrust Liability,” which provides that the commission will not sue nonunionized workers who engage in certain potentially anticompetitive joint conduct. This statement could undermine competition and reduce consumer welfare, without providing any real benefits ... Last-Minute Biden Labor-Antitrust Initiatives May ‘Have No Future’
Kroger/Albertsons: Is Labor Bargaining Power an Antitrust Harm?
The Federal Trade Commission’s (FTC) recent complaint challenging the proposed merger of the supermarkets Kroger Co. and Albertsons Companies Inc. has important implications for antitrust enforcement in labor markets. Central to the FTC’s case is how it chooses to define the relevant markets, and particularly the commission’s focus on unionized grocery workers. The complaint alleges ... Kroger/Albertsons: Is Labor Bargaining Power an Antitrust Harm?
NLRB Targeting of Noncompetes Lacks a Sound Legal Foundation
Jennifer Abruzzo, general counsel of the National Labor Relations Board (NLRB), recently issued a memo claiming that certain noncompete clauses in labor contracts are illegal, on grounds that they violate employees’ right to organize and negotiate better working conditions under Section 7 of the National Labor Relations Act (NLRA). The NLRB isn’t the first Biden ... NLRB Targeting of Noncompetes Lacks a Sound Legal Foundation
