Antitrust

Death of the Category Killers

smitchell — Tue, 23 Jun 2009 11:42:32 -0500

Borders Books is on "death watch," according to one industry observer. Virgin shut down its last U.S. record store this month. Office Depot and Staples are struggling. Circuit City is gone. Best Buy has launched a desperate ad campaign.

While the decline of independent businesses has leveled off, the rest of the retail sector is undergoing dramatic consolidation as a small number of massive companies become ever more dominant. This is an ominous trend for manufacturers and consumers, and it exposes serious flaws in U.S. antitrust policy.

Soaring Credit Card Transaction Fees Squeeze Independent Businesses

smitchell — Tue, 05 May 2009 14:09:46 -0500

Independent businesses are largely at the mercy of Visa and MasterCard when it comes to the fees they must pay every time they swipe a credit card. These fees, which are ultimately passed on to consumers in the form of higher prices, have soared from $27 billion in 2004 to $48 billion last year (or $427 per household).

Recognizing the tremendous market power held by card processors, many countries now regulate credit card transaction fees, setting them at rates as low as one-sixth of what U.S. businesses pay.

Letter-to-the-Editor Exchange: Doesn't "Shop Local" Author Know Barnes & Noble is Selling Her Books?

smitchell — Mon, 06 Apr 2009 10:48:53 -0500

To the editor: Regarding, "Author brings case for supporting locally owned businesses to Belknap County."

Please note that author Stacy Mitchell's book is sold by Amazon, Borders, and Barnes and Noble. In other words, at all the "big box" bookstores nationwide. The Wal-Mart website even links you to Barnes and Noble for her book. Do as I say, not as I do?

Read our response after the jump...

Suit Charges that Visa and MC Squeeze Small Retailers

admin — Wed, 29 Jun 2005 00:00:00 -0500

A lawsuit filed this month alleges that Visa and MasterCard illegally fix the price of fees that small retailers pay for credit card transactions. The suit further charges that the fees levied on small retailers are much higher than those charged to large chains and that this price discrimination is unjustifiable and a violation of US antitrust laws.

The suit was brought by five retailers, but seeks class-action status to cover the millions of small businesses who accept Visa and MasterCard.

Independent Theaters Fight Chains for Access to Hit Movies

admin — Wed, 04 May 2005 00:00:00 -0500

At the request of independent movie theaters across the state, California Attorney General Bill Lockyer is investigating claims that major movie theater chains use their clout with distributors to prevent independent theaters from showing many of the most popular first-run films.

At issue is a common industry practice called clearance, whereby theaters are given exclusive rights to show a film within a certain radius around their theaters.

Britain to Review Supermarket Merger

admin — Tue, 01 Apr 2003 00:00:00 -0600

In March, British officials launched an inquiry to examine the competitive impacts of a merger between two of the country's top supermarket chains. The findings could derail attempts by Britain's top three and number five chains—Tesco, Sainsbury, Wal-Mart-owned Asda, and Morrison—to purchase the fourth largest grocery chain, Safeway.

Mexico Impose Code of Conduct on Wal-Mart

admin — Tue, 01 Apr 2003 00:00:00 -0600

After a ten-month investigation of Wal-Mart, Mexican antitrust officials have imposed a code of conduct on the company and other large supermarket chains.

The Mexican Federal Competition Commission (CFC) launched the investigation last May to determine whether Wal-Mart was using its market power to pressure suppliers into providing prices substantially lower than those available to other retailers (after accounting for reasonable volume discounts).

Puerto Rico Okays Wal-Mart Acquisition

admin — Tue, 01 Apr 2003 00:00:00 -0600

Small business owners are crying foul over an agreement reached between the Puerto Rican government and Wal-Mart. The deal allows Wal-Mart to proceed with its purchase of an island supermarket chain, which will give it control of 40 percent of Puerto Rico's grocery sales.

Last year Wal-Mart won approval from the Federal Trade Commission to purchase the Amigo supermarket chain. Puerto Rican officials said the deal violated local antitrust laws and sued to block the merger.

German High Court Convicts Wal-Mart of Predatory Pricing

admin — Sat, 01 Feb 2003 00:00:00 -0600

Germany's highest court has ruled that Wal-Mart's below-cost pricing strategy undermines competition and violates the country's antitrust laws.

Two years ago, the federal Cartel Office accused Wal-Mart and two other large supermarket chains of selling goods below cost and ordered the companies to raise their prices. The items in question included about a dozen staple products like milk, butter, and vegetable oil.

Wal-Mart's Purchase of Puerto Rico Chain Challenged

admin — Sat, 01 Feb 2003 00:00:00 -0600

Puerto Rico's Department of Justice has asked the U.S. Court of Appeals for the First Circuit to block Wal-Mart's acquisition of the island's largest grocery store chain, Supermercados Amigo Inc. The outcome of the case could affect the ability of states to review and challenge mergers.

Wal-Mart already operates 19 outlets in Puerto Rico, including eight Sam's Club stores and one supercenter.