Showing posts with label Antitrust. Show all posts
Showing posts with label Antitrust. Show all posts

Monday, September 20, 2021

When Private Media ‘Colludes’ With Government, Blame the Government, Not Media: The Dollar is No Match for a Bullet.

There is a line of thought developing that holds that if social media companies restrict content that the government wants restricted, there is fascist collusion going on. Consequently, private social media companies should be subject to civil or criminal sanctions for anti-First Amendment violations.

 

As Lori Roman and Naomi Wolf write in Left and Right Should Unite to Stop Censorship for The Epoch Times


We, a former advisor to President Bill Clinton’s campaign and a former member of the George W. Bush Administration, may not agree on many public policy issues. Figuratively speaking, we wear different colored hats. But we have joined together to sound the alarm against censorship.


Viewpoint censorship threatens to destroy the country as it was intended to be—a beacon of freedom of speech, religion, and assembly. The First Amendment protects citizens from the government controlling speech, and the principle of free speech permeates our founding principles.


Just last week, the White House press secretary bragged that the Biden Administration is working with social media companies to flag speech they find unacceptable. They label it “misinformation” while a better description would be “inconvenient information.”


Corporations may think they are free to censor speech because the First Amendment was written to constrain government, but when they conspire and collude with the government to censor, they have crossed the line and left themselves open to litigation that could destroy their companies.


But this is very dangerous thinking. It assumes that Facebook et al are on equal footing with the government. That is entirely false. The government has a legal monopoly on the use of physical force -- the power of the gun. Facebook has no such power. It only has the market power of voluntarism -- the power of the dollar. 


To equivocate Facebook with the Biden Administration is a grave injustice. The New York Times reports how Joe Biden “has assembled the most aggressive antitrust team in decades,


stacking his administration with three legal crusaders as it prepares to take on corporate consolidation and market power with efforts that could include blocking mergers and breaking up big companies. 


Antitrust not only empowers the government to block mergers and dismantle private companies, but also to levy ruiness fines and even jail executives. What chance does Facebook have against that kind of power? Yes, it can fight in court. But there is no realistic defense against undefined accusations, like “intent to monopolize.” Ultimately, government wins because it has, through antitrust, arbitrary, undefined, unlimited powers -- not to mention unlimited resources.


Let’s take a look at a recent example of how this mismatch between private companies and the government. President Biden has pressured social media to take down so-called “misinformation” about the COVID-19 vaccines. As Jacob Sullum writes in Joe Biden Is Trying to Impose Online Censorship by Proxy for Reason, “The administration’s public pressure campaign against COVID-19 ‘misinformation’ cannot be reconciled with its avowed respect for freedom of expression.” 


President Joe Biden wants to suppress speech that discourages Americans from being vaccinated against COVID-19. Because the First Amendment does not allow him to do that, he is asking Facebook and other social media companies to do it for him.


Or at least that's the way White House Press Secretary Jen Psaki, who calls the Biden administration's demands for speech restrictions "our asks," describes the situation. But given the federal government's power to make life difficult for Facebook et al., the line between a request and a command is hazy, and so is the line between private content moderation and government censorship.


Psaki's assurances are hard to take seriously given the public pressure that the Biden administration is applying, its ability to launch litigation and support legislation that hurts social media companies, and its threat of "legal and regulatory measures." If those companies do what the president wants by cracking down on speech he does not like, they will be acting as the government's agents.


Emphasis is mine. Of course, a private company has a right to its political opinion. If it wants to help the Biden Administration advance a particular viewpoint about vaccines, it has as much right to take a political position as you or I have. It has as much right to ban what it considers “misinformation” on its platform as a lecture hall owner has to ban it in their venues or, for that matter, you or I have to ban it in our homes (although that would violate their stated purpose of fostering free expression and likely be commercially harmful over time). 


But that’s not what’s going on with the alleged “collusion” charges levied by the likes of Lori Roman and Naomi Wolf. These private companies literally have a governmental gun to their heads. New Jersey Representative Tom Malinowski captured the essence of this fact when, in support of his proposed Protecting Americans from Dangerous Algorithms Act, which is intended to force companies to reign in “extreme left-wing”--and right-wing--“ideas,” he warned, “And if they don’t do it voluntarily, we’re going to have to regulate them to death.”  If a sitting congressman can get away with such overt public threats, we can only imagine what's going on behind the scenes.


I've been warning about censorship-by-proxy for a long time. The politicians can't directly censor, because of the First Amendment. But they have a powerful backdoor weapon, the regulatory state. Politicians can "arm twist" companies into submission by threatening regulation, in particular antitrust enforcement. The antitrust "laws" are particularly powerful. They're not really laws. They are unAmerican statutes that grant government arbitrary power, the tool of authoritarianism. Antitrust gives politicians power to prosecute any business for anything, at any time, at will. And it's a powerful tool for politicians to pressure private entities to do its bidding. Antitrust is Al Capone "politics," not law. Given that politicians of both parties are already threatening social media companies with antitrust, how much choice do they have to resist the political demand to censor their users? After all, the only power companies have is voluntary market, or economic, power. The government has the coercive power of law. Facebook’s dollar is no match for the government’s bullet.


This demonstrates the integral nature of rights, in which intellectual freedom depends on economic freedom, and vice-versa—and both depend on political freedom. It also shows how individual rights depend on grasping the crucial distinction between economic and political power, or what philosopher Harry Binswanger symbolizes as The Dollar and the Gun. This case shows how economic controls are used to crush other freedoms, like free speech. Intellectual freedom is not possible without economic freedom. Roman and Wolf call this “collusion” “indicative of America’s freefall into fascism.” Yes, it is fascism. But don't blame the social media companies. They are victims of the government’s fascist attack. Blame the government, which holds the power of the gun—a power that neither Facebook nor Twitter nor any private company possesses. The Italian government of Benito Mussolini, the original fascist, explains in “the ninth declaration of the Charter of Labor,


The intervention of the state in economic production takes place only when private initiative is lacking or is insufficient or when political interests of the state are involved. Such intervention may assume the form of control, assistance, or direct management. 


Fascism can only be initiated by the state. Private entities, in and of themselves, by definition cannot initiate fascism under a proper, individual rights-securing constitution. We need to understand this distinction. Our freedom depends on it. 


Related Reading:


Malinowski's Censorship-By-Proxy 'Protecting Americans from Dangerous Algorithms Act' Advances


No, AOC, It's Not the Government's Job to 'Rein in Our Media': The First Amendment doesn't come with an exception for "disinformation," by Robby Soave for Reason


Americans Abandoning Free Speech Better Brace for the Consequences by J.D. Tuccille for Reason: Government will happily suppress misinformation in favor of misinformation of its own.


The Abolition of Antitrust by Gary Hull


The Dollar and the Gun by Harry Binswanger


Antitrust Prosecution of Apple is Rotten


My published letter-to-the-editor: Google not a Monopoly


The Banning of Alex Jones: Facebook Choice or Regulatory Extortion?


Fauci Can’t Get His Own Facts Straight, Yet the Government Wants to Decide What’s ‘Misinformation’ on Social Media by Hannah Cox for FEE


Biden’s Antitrust Team Signals a Big Swing at Corporate Titans By Jim Tankersley and Cecilia Kang for the New York Times: The president has stacked his administration with crusaders who have spent their careers challenging corporate consolidation.

Tuesday, December 4, 2018

Instead of an Antitrust Exemption for Newspapers, End Antitrust


America’s traditional newspaper publishers are struggling in the era of the internet. So, they’re looking to Congress for help. Representative David Cicilline obliged, introducing the Journalism Competition and Preservation Act of 2018 (JCPA). The Act would

provide a temporary safe harbor for the publishers of online content to collectively negotiate with dominant online platforms regarding the terms on which their content may be distributed.

That is, award an exemption from the antitrust laws.

The New Jersey Star-Ledger, not surprisingly, enthusiastically supports the law. In its 10/30/18 editorial, This website is under siege by Facebook and Google. Send help, the Star-Ledger wrote:

James Madison feared that our democracy cannot survive without the free and independent press -- "chequered as it is with abuses," he admitted, but essential for "all the triumphs which have been gained by reason and humanity over error and oppression."

That's still the mission statement. That is probably why journalism is the only profession Madison deemed important enough to be granted explicit protection in the Constitution [the First Amendment], and as he would have guessed, the press is just as crucial today as it was in the 1780s.

What is different is how we access it: Most of us read news in digital form, often through portals such as Facebook and Google News. Odds are you are reading this sentence through one right now. It is heartening that the demand for news remains extremely strong on the internet. Its appeal to advertisers remains very robust.

But only a few companies benefit financially from that digital ad revenue, and they do it without supplying any of the digital news content.

This is an economic imbalance that needs to change.

My emphasis. The Star-Ledger argues that

The only way to break the Facebook/Google duopoly is to allow 2,000 newspapers to take them on in a collective negotiation, but antitrust laws protect these trillion-dollar web behemoths from united actions by publishers.

The Star-Ledger concludes by again invoking James Madison and democracy:

These solutions cannot wait. At the time of year when we consume news at a voracious rate, this is an ideal moment to tell your Congressman that you care about the digital landscape and the future of news. Because our democracy, as Madison predicted, depends on it more than ever.

There’s undoubtedly an element of disingenuousness in the Star-Ledger’s position. The alleged “Facebook/Google duopoly” broke the predominantly Leftist mainstream press’s stranglehold on news. So, the demise of the newspaper business is probably driven in part by competition. Suddenly, people can bypass the newspapers for a more freewheeling news source. I’m a longtime reader of the Star-Ledger, and I see first hand the Leftist bias in the news reporting. So, I shed no tears for the newspapers.

Also, for all of the Star-Ledger’s invoking of the First Amendment, the editors “forget” that the First Amendment broadly protects freedom of speech, not just press. Yet the Star-Ledger has no qualms about stifling freedom of speech for non-journalists, including its opposition to Citizens United, one of the most important pro-free speech Supreme Court decisions ever.

And just five years ago, the Star-Ledger called for an antitrust assault  on Google. So it is really rich for the Star-Ledger to now plead for “help” today. (To be fair, perhaps the Star-Ledger has changed its views since then. It writes, “Nobody wants a war. Newspapers do not want to deny the digital platforms the ability to distribute their content.”)

That said, I left these comments:

The first paragraph tempted me to stop reading and turn the page. Madison didn’t want to protect democracy. He hated democracy. That’s why he championed a new constitution--to make America a republic that protects individual rights from the political power of electoral factions. He wrote the First amendment because free expression is an inalienable right, not to “save” democracy.

That little piece of fake news aside, I sympathize with the Star-Ledger. Newspapers should be exempt from antitrust laws. So should everyone else. The problem is precisely that these laws are "flexible and adaptive”--a zealous prosecutor’s dream. A flexible law is no law at all. It is the rule of men; i.e., tyranny. And that’s antitrust. Antitrust punishes competitive success but also hampers competition by forbidding companies from exercising their economic power earned in the marketplace. The call for this exemption proves the point. Why should 2,000 newspapers be banned from using collective negotiation in the first place? Why should these trillion-dollar web behemoths be protected from united actions by publishers?

Like I said, I sympathize with the Star-Ledger. But I also don’t like exemptions from laws for some, but not for others. That’s institutionalized cronyism. Law enforcement should be equal. Law enforcers should not have the power to dish out favors.

Antitrust has a long history of abuse. It is also based on myths about free markets. Yet antitrust has widespread support in our culture. It’s time to consider the argument against. The fact that the Journalism Competition and Preservation Act of 2018 (JCPA) has been introduced, and that traditional newspapers believe they need it to survive, is itself an indictment against antitrust. I recommend “The Abolition of Antitrust” by Gary Hull.

Related Reading:






My published letter-to-the-editor: Google not a Monopoly (Scroll down to the fourth letter)

Monday, August 4, 2014

Norquist/McAuliffe Fall Short on Antitrust

Grover Norquist, president of Americans for Tax Reform, and Katie McAuliffe, executive director of Digital Liberty, penned an op-ed in the New Jersey Star-Ledger blasting the antitrust attack on the Comcast/Time-Warner merger:


Histrionic warnings of a cable monopoly have all the credibility of Chicken Little.
When the Sherman Antitrust Act passed in 1890, its advocates promised a classically conservative use of law to keep markets competitive and free. But today, federal antitrust law distorts the market, exacts concessions under penalty of law, and has become a forum for rent-seeking by competitors, who hope to leverage government intervention when they cannot win in the marketplace.


Norquist and McAuliffe demolish the notion that the merger will lead to “monopoly,” pointing out the myriad choices consumers have in the video/communications market. They make a compelling practical case for why the merger should not be blocked by antitrust regulators.


Unfortunately, they stop short of condemning antitrust laws as such:


Antitrust laws should not be manipulated as a pretext to justify more central control and command of the economy by government bureaucrats. If critics can’t show in clear and demonstrable terms how consumers are harmed, then Congress and the administration should let companies do what is best for their customers and subscribers, including combine and merge.


How can a set of laws as non-objective as antitrust ever not be "a pretext to justify more central control and command of the economy?" Never, because antitrust itself is based in broader principles that can only lead to more command and control.

Norquist and McAuliffe accept the altruist/collectivist/statist justification for antitrust; that producers exist to self-sacrificially serve consumers, and the state has a duty to enforce that servitude. As such, they do not call for full repeal of antitrust laws, which consistent pro-free marketeers must do if they are to reverse the anti-capitalist trend in this country.


Even those conservatives who do call for full repeal of antitrust cling to self-defeating collectivist justifications. For example, Steve Forbes called for full repeal, but only because “Antitrust efforts serve no public good,” undercutting his whole case and leaving the moral high ground to anti-capitalists. What’s to stop any statist from finding a “public good” that antitrust produces? The term “public good” can’t even be rationally, objectively defined.


Antitrust should be abolished. But conservatives will never beat back antitrust statism—indeed, as Norquist and McAuliffe point out, antitrust is “a classically conservative use of law to keep markets competitive and free”—as long as they cling to altruism/collectivism ethics. Only egoism/individualism can lead to victory over antitrust tyranny.


I left these comments, focusing on the monopoly myth:


The antitrust laws were created in part on a myth; that free markets lead to monopolies. In fact, monopoly is impossible under free markets, because in a free market government is as neutral concerning business as it is concerning religion. Even if a company in a particular market were to achieve a dominant position, it is not a monopoly as long as it is market-driven; i.e., driven by voluntary choices of consumers and no competitors are legally barred from entering the market. Religiously, America is a dominant Christian nation, encompassing 80% of the population. Yet nobody fears a Christian monopoly. Why? Even if the Comcast-Time-Warner merger resulted in an 80% market share, it would not be a problem if consumers could readily choose from competitors freely operating on a level legal playing field.


The key is a level legal playing field. Only government intervention can create monopolies (e.g., cable franchise monopolies dictated by local governments). If you want to see what a monopoly looks like, consider K-12 education. The public schools collect their revenues by government force (taxation) and their "customers" by government force (truancy laws). Government has regulatory control over what minimal private alternatives exist. And if parents should choose a private school or homeschooling, they must still pay taxes to support the government schools, putting private schools at a severe competitive disadvantage (Imagine if Comcast were able to force its fees on everyone, even those who choose alternatives). The government dictates teaching methods, educational philosophy, and teacher credentialing. Everyone must pay, whether they agree with the ideas being taught or not (Imagine if you were forced to tithe the Catholic Church, even if you disagreed with their philosophy). Real competition against the government schools is legally barred, unless you consider parents paying double for choosing a private school from among a minimal range of choices "competition".


Those who scream monopoly against successful private companies while ignoring and even supporting the government school monopoly have no idea what they're talking about. If they were truly worried about monopoly, they'd want to apply the same free market principles operating in the video-communications market to the education market. Imagine what the same kind of competition could do for K-12 education; the robust innovation, rising quality, and falling prices. Imagine the same moral principles that govern a free market—the rights of producers and consumers to contract voluntarily to mutual advantage—being applied to education; people directing the course of their own children's education with their own money, and profit-seeking educators competing freely for the parents' business, as a matter of fundamental right.


It's a tragic shame that so many Americans can get so up in arms over the hint of "monopoly" when it comes to watching TV, while ignoring the monopoly issue when it comes to something as important as educating children.


Related Reading:




My published letter-to-the-editor: Google not a Monopoly



Thursday, July 11, 2013

Apple's Conviction: One of the Most Shameful Prosecutions in American History

To the shame of a nation that was founded on the principle of individual rights and the rule of objective law—"a government of laws and not of men"—Apple Inc. was found guilty of "conspiracy" to "fix prices."

What was their "crime?" According to The Los Angelos Times' Alana Semuels:

In a trial that lasted three weeks, federal prosecutor Mark Ryan argued that when it entered the e-book market in April 2010, Apple offered publishers a way to fight back against Amazon by raising the prices of e-books. Prices went up shortly thereafter, and Apple negotiated 30% of the profits.

So??? These companies negotiated voluntary agreements in an effort to maximize their profits through voluntary trade with consumers. No one was forced. There was no guarantee that the higher prices would stick, and be profitable. That they did and were is proof of good business judgement, not criminal behavior. This is called competition in a free market—a free market being a market that is free from physical coercion.

Free, that is, until the government intruded. "The Plaintiffs have shown that Apple conspired to raise the retail price of e-books and that they [presumably consumers] are entitled to injunctive relief. A trial on damages will follow," U.S. District Judge Denise Cote wrote in her opinion. "Apple was a knowing and active member of that conspiracy. Apple not only willingly joined the conspiracy, but also forcefully facilitated it."

But there was no force involved, except in what the government is doing (George Orwell, are you listening?). These were voluntary agreements among the companies. Consumers voluntarily paid for the e-books, and got the e-books they paid for. There was no fraud or force involved. Yet, the government will now forcibly seize money from Apple, under the legalese guise of "injunctive relief" and "damages," and presumable turn it over to consumers who were not harmed in any way, shape, or form. 

No consumer is entitled to any particular "low" price for any product. Producers are not entitled to any particular "higher" price. Prices are set in the market by voluntary agreement of buyers and sellers. Apple did not, and can not, "fix" prices. It offered products for sale at a price it believed would be advantageous to itself. Consumers paid a price that was advantageous to themselves. Apple's judgement prevailed, and the higher prices "stuck." What the government is doing—allegedly on behalf of consumers—is attempting to forcibly override the market and fix prices according to its own whims. If what Apple did was fix prices, then every trade is based on fixed prices, and every business is guilty of it.

The only criminal here is the government. Employing the grotesque premises of antitrust, the government has turned innocent producers into criminals, branding them as "conspirators." This moral and legal inversion is not consistent with a free and just society. It is consistent with tyrannical government.  

Related Reading:

Antitrust Prosecution of Apple is Rotten

Barbara Straniero's Mistaken Understanding of "Free Market"

The Abolition of Antitrust by Gary Hull

3 Things Everyone Needs to Know About the Apple Antitrust Case by Yaron Brook and Don Watkins

Wednesday, July 10, 2013

The Google "Monopoly" vs. True Monopolies

Google is not a monopoly, as the NJ Star-Ledger claims in Google's Growing Monopoly. A true monopoly entails the ability to forcibly forbid competition. The editors write:

   Just 14 years old, the company has become a $200 billion behemoth and borders on a global internet monopoly. Beyond search — where Google owns 70 percent of the U.S. market, 95 percent in Europe — its domination includes video (YouTube), mobile (Android) and web browsing (Chrome, Firefox). It’s challenging Face­book (Google+), selling smartphones and laptops (Chromebook), and is working on computers worn as glasses and wristwatches.   In the United States, 76 cents of every online ad dollar goes to Google.


Yes, Google is a great company. Their growth to $200 billion was achieved by successfully competing in the market, not by hiding behind legal protection from competition.  That's not what the editors want you to conclude, of course. They want you to cower in fear of the "behemoth" Google--a behemoth created by free consumer choice.

The editors also hint darkly against "this monster," which it accuses of "invading users' privacy" and "scraping of personal information from home WiFi networks." Maybe there's something to it, but that is a legal matter that has nothing to do with the issue of monopolies.

There is only one institution that can create true monopolies--the government. That's because only the government has a monopoly on the use of physical force, by means of its law-making powers which people are compelled to obey under threat of armed assault by government agents. No private company has that power. The US Post Office, for example, is a true monopoly: No other company is legally allowed to compete with it in first class mail.

If the editors were truly concerned about monopolization, they would focus their attention on the government's growing abuse of its lawmaking monopoly, which is increasingly used to violate rights of innocent people rather than prosecute criminals and protect rights. They would use this year's 100th anniversary of the Federal Reserve System to call for its elimination. It destructive monopoly over the monetary system is entrenched by legal tender laws

The editors would also be beating the drums for an end to the destructive government "public" school quasi-monopoly, which gains its "customers" and stifles competition by compulsory taxation and compulsory attendance laws. 

They would fight against the government's growing monopolization over healthcare, including their beloved ObamaCare with its myriad boards and committees wielding the power to decide who gets what kind of health care and health insurance and when. 

And don't forget the local electric utility and, as noted, the US Post Office.

If the editors are truly concerned about privacy issues and information gathering and how it is used, it should recognize that the government is the elephant in the room that we all should be worried about. Unless Google uses its information for criminal purposes like extortion or blackmail, it has a moral right to profitably  "leverage" its information gathering prowess as it sees fit, so long as its information gathering techniques do not violate rights (this is a complex legal matter). 

Leave Google alone. It has done nothing wrong but successfully compete in the freest market in the world--the internet. When people decide that they would be better off patronizing some other company or venue, Google's "monopoly" will disintegrate as fast as IBM's dominance in mainframes dissolved in the face of the personal computer revolution. 

And while we're at it, we should advocate for the complete abolition of the antitrust laws, whose sole purpose is to empower government control over private business, penalize success and ability, and enable less successful competitors to gain by government force what they couldn't legitimately gain in the marketplace. The editors worry about "the impunity with which Google does business." The impunity with which government wields its power is the real danger.

Related Reading:

My published letter-to-the-editor: Google not a Monopoly
What Are the Search Results When You Google 'Antitrust?',  by Thomas A. Bowden

Antitrust Prosecution of Apple is Rotten

Apple followup: Barbara Straniero's Mistaken Understanding of "Free Market"

Wednesday, June 5, 2013

The Government's Shameful Antitrust Persecution of Apple Reaches Trial

The government's antitrust suit against Apple went to trial this week. The judge in the case urged Apple to settle because he believed the government had "a strong case," but Apple CEO Tim Cook vowed to fight, saying Apple would take "a very principled position on this." Let's hope so.

Apple is accused of "price-fixing," because it allegedly contracted voluntarily with major book publishers to set the e-book price for its iPad a few dollars above Amazon's $9.99 price. Amazon's price was well below the $25 to $35 price of hard cover versions, which would have hit publishers' profits pretty hard. So, the publishers signed agreements with Apple in which they, rather than Apple, would set the price, guaranteeing Apple a 30% commission on each sale (the so-called "agency model"). The hope was that Amazon, which at the time had an "iron grip on the electronic book market," would follow suit with the publishers. They eventually did. The strategy apparently worked. The agreement apparently raised the price of e-books by anywhere from $2-$5.

For this, Apple is charged with "conspiracy" because, according to the government, Apple didn't want to "compete" with Amazon. This is the bizarro world of antitrust: When a producer takes the risk of raising prices because it believes existing prices are below what the market could bear, that's "price-fixing." When the government forcibly forbids producers from doing so, thus keeping prices unnaturally low, that's not price-fixing. "Competing" means charging whatever the absolute lowest price some competitor is currently charging. Risking a loss of sales by raising prices to what one believes consumers are willing to pay is, somehow, not competing.

But what Apple and the book publishers (all of whom caved in and "settled") did was, precisely, to compete. Apple leveraged the economic power it earned in the market by proposing a deal with the publishers, allegedly to raise the price of e-books. The publishers, who were eager to thwart Amazon's cut-rate pricing because of the harm it could do them, agreed. Apple believed this strategy would work, and indeed it did. Consumers willingly paid the prices set by these agreements (Apple claims that average prices actually went down, not up). Whatever the case, what Apple did was precisely to successfully compete in the market, in pursuit of the honorable goal of maximizing its profits. Despite all of the antitrust thugs' blustering, the result of Apple's "price-gouging" is a cut in book prices by more than 50% from hard-cover versions!

It's interesting that the government is claiming that Apple cheated consumers. Apple could raise the market price of e-books because of its economic power; a power that consumers themselves granted to Apple. Economic power is a measure of the value that consumers place on a producers products by virtue of their willingness to voluntarily buy them. Economic (or market) power is achieved through consumer satisfaction. Apple used its consumer-granted power to influence the market for e-books--successfully, in this case---which is exactly what successfully competing is all about.

Through it all, nothing but voluntary agreements to mutual advantage are evident--between Apple and the publishers, the publishers and Amazon, and Apple, Amazon, and the publishers with consumers. Apple's only "crime" was to contract voluntarily with publishers on a pricing model. For this, they are smeared as "conspirators." Who is wielding force? The government, allegedly on behalf of consumers who were not defrauded or wronged in any way; who, in fact, benefited from the e-book revolution created by the likes of these companies--an achievement that the antitrust thugs could not even conceive of, let alone match.

If Apple successfully managed to get prices up a bit, to a level the market was proven to be able to sustain, kudos to them. There is no inherent right of consumers to some government-dictated "low" price. Prices are legitimately set only y the market, which includes the cumulative voluntary choices and agreements of and between producers and consumers. The governments only job is to fight fraud and breech of contract, but otherwise protect the rights of all to voluntary trade and contract.

Shame on our government for its attack on Apple and the book publishers. The government is criminalizing legitimate business practices, which highlights the tyrannical essence of the antitrust laws. And good luck to Apple in its fight to defend itself, and its courageous willingness to do so.

For some background on this case, I found this article via Voices for Reason.

Related Reading:

Antitrust Prosecution of Apple is Rotten

Apple Followup: Barbara Straniero's Mistaken Understanding of "Free Market"

The Abolition of Antitrust, by Gary Hull

Tuesday, February 12, 2013

Antitrust Attack on Beer

My latest post at The Objective Standard blog is up. Here are the opening lines:


The U.S. Justice Department has filed a lawsuit to block Anheuser-Busch InBev’s $20 billion buyout of Mexican beer-maker Grupo Modelo, the maker of the Corona beer brand. The Wall Street Journal calls the Busch-Modelo agreement “the latest deal to fall prey to global antitrust regulators.”

Why is this bad? Read the rest of  Antitrust Suit against Anheuser-Busch and Grupo Modelo Violates Rights and find out why.

Related Reading:

Antitrust Prosecution of Apple is Rotten

Barbara Straniero's Mistaken Understanding of "Free Market"

The Abolition of Antitrustby Gary Hull