Huge Tech, the FTC, and Ordoliberals: ProMarket’s High Tales of 2021

As 2021 attracts to a detailed, we glance again at ProMarket’s most-read and most-widely shared tales of the previous yr.

In a yr marked by a profound shift in the way in which that antitrust regulation is enforced and thought of in Washington, with an rising Congressional consensus concerning the dangers related to the dominance of digital platforms and “New Brandeis” thinkers Lina Khan, Jonathan Kanter, and Tim Wu successfully answerable for America’s competitors coverage, it’s hardly stunning that the query of tips on how to regulate Huge Tech and the broader debate round the way forward for antitrust enforcement within the US dominated our protection in 2021. Because the pandemic continued to disrupt provide chains and in any other case problem long-established assumptions, it must also come as no shock that most of the items that almost all resonated with ProMarket’s readers this yr centered on whether or not capitalism—and the sector of economics—must be reformed. 

As we bid goodbye to the tumultuous 2021, we have a look again at ProMarket’s hottest tales of the previous yr. Completely satisfied studying! 

1. Congress Is Leaning In direction of a Huge Tech Breakup

“Latest developments indicate that sure platforms have amassed a lot financial and political energy that they is probably not governable, which militates in favor of slicing them down in measurement,” writes Hal Singer on this commentary piece, which proved to be our most-read piece of 2021.  (March 9) 

2. The Actual Dish on the T-Cell/Dash Merger: A Disastrous Deal From the Begin 

“The Trump-era DOJ’s choice to permit the T-Cell/Dash merger will go down as one of many worst merger-enforcement errors in a long time,” wrote Melody Wang and Fiona Scott Morton, who went on to write down that the 2019 merger “will probably be chargeable for transferring billions of {dollars} in wealth from common People to the T-Cell/Dash shareholders.” (April 23)

3. The Sophisticated Legacy of the “Chicago Boys” in Chile

How did a gaggle of Chicago-trained economists handle to show Chile into the cradle of neoliberalism? As Chile strikes away from their method to financial coverage, Chilean writer and journalist Daniel Matamala explores the controversial legacy of the Chicago Boys as a part of our Historical past of Financial Thought article collection. (September 12)

4. How the FTC Protected the Market Energy of Pharmacy Profit Managers

Pharmacy Profit Managers (PBMs) have been established within the Nineteen Sixties to regulate drug prices however have since morphed into some of the extremely concentrated segments within the well being care trade, write Stacy Mitchell and Zach Freed. “Regardless of proof that PBMs undermine competitors and lift prescription costs, the FTC—beneath the management of each Democratic and Republican Chairs—has discouraged states from regulating them and allowed the sector to consolidate additional by a collection of mergers.” (February 19)

5. The Finish of the Capitalist-Employee Dichotomy and the Rise of a New Elite?

Economists usually assume that capitalists and employees are completely different folks. A brand new examine by Yonatan Berman and Branko Milanovic, nonetheless, finds that the intersection between the highest decile of capital-income recipients and labor-income earners is rising. (January 27)

6. Digital Markets Act: Coverage Selections and Circumstances for Success

Late final yr, the European Fee launched an formidable new algorithm for digital platforms, the Digital Markets Act. On this piece, Alexandre de Streel explains what it says and the way it can succeed. Additionally, comply with the remainder of our protection of the DMA right here. (January 13)

7. How Will the FTC Consider Vertical Mergers?

“The Federal Commerce Fee’s current withdrawal of its 2020 vertical merger pointers is flatly incorrect as a matter of microeconomic concept and is opposite to an intensive financial literature about vertical integration,” write Carl Shapiro and Herbert Hovenkamp. Additionally, learn Hal Singer and Marshall Steinbaum’s response to Shapiro and Hovenkamp, in addition to the remainder of our vertical merger pointers protection right here. (September 23)

8. The Silent Coup

“President Donald Trump’s seditious actions are exposing the political energy that Twitter, Amazon, Google, Apple, and Fb (TAGAF) get pleasure from,” Luigi Zingales wrote on this piece, printed after the occasions of January 6. “This weekend’s occasions present {that a} coordinated motion by TAGAF can put any enterprise on its knees,” he writes. (January 11)

9. The Incoming Forex Struggle

“4 highly effective forces—cryptocurrencies, the decoupling of geographical and financial boundaries, ad-based digital platforms’ foray into the world of funds, and the worth of knowledge—are threatening the acquainted world of cost programs. The EU has to decide on the correct path to comply with, and it should accomplish that sooner quite than later,” writes Luigi Zingales. (July 14)

10. “Energy Is Evil in Itself”: The Ordoliberal Quest for a Privilege-Free Order

“The lesson from the search of German ordoliberals for a privilege-free order from the Nineteen Thirties to the Fifties is that when in movement, the refeudalization of society by the entanglement of personal and state energy could be very troublesome to reverse,” writes Stefan Kolev on this piece, which opened our Historical past of Financial Thought collection. (March 28)

Originally posted 2021-12-28 22:01:54.