September 20, 2018
In a joint letter released this week, thirty free market groups urged House Ways and Means Chairman Kevin Brady (R-TX) to oppose “any effort to expand the current electric vehicle tax credit in any way.” The federal government currently provides a tax credit of up to $7,500 for the purchase of a plug-in electric vehicle. The credit begins to phase out for a manufacturer’s EVs when 200,000 of those vehicles have been sold in U.S. markets.
August 28, 2018
The Federal Trade Commission (born in 1914, fathered by Woodrow Wilson) is hosting a series of hearings and discussions on “Competition and Consumer Protection in the 21st Century,” particularly as these are affected by emerging business models in the modern high-tech economy. We at the Competitive Enterprise Institute provided a brief filing and there will be more opportunities for the public to weigh in.
August 9, 2018
Yesterday, the New York City Council voted to impose a one-year cap on the number of ride-hailing vehicles able to operate in the city. The bills also allowed the city to impose a minimum level of compensation for ride-hailing drivers.
August 7, 2018
Social media outlets have been filled with commentary this week about the decisions by Apple, Facebook, YouTube, and Spotify to remove content created by talk show host and conspiracy theorist Alex Jones. This is a useful opportunity to clarify what actually counts as “censorship” and what responsibilities that media platforms have to the public.
August 1, 2018
Today, the Competitive Enterprise Institute launches its new video about the platform economy. Platforms are an ancient way of doing business—think of matchmakers, city fairs, and town markets—that bring together two or more parties to make economic transactions. Today, digital platforms allow a far wider reach, bringing together people in a way that was unthinkable just a generation ago.
July 18, 2018
Dominance and popularity are not the same as a coercive monopoly. The European Commission is behaving in protectionist fashion, not in a manner benefitting consumers, and the fines are inappropriate, unwarranted, and plain wrong. Google is no monopoly, as the existence of Apple’s iPhone and other options attest. There is always some new disruptive technology on the horizon (remember the MySpace monopoly? The AOL one?).
July 17, 2018
T-Mobile and Sprint—the third and fourth largest mobile carriers in the United States, respectively—are in the process of merging into a single company under the T-Mobile brand. Together, T-Mobile–Sprint would have roughly 127 million subscribers, meaning the merged firm would for the first time rival the nations’ two largest wireless companies, Verizon Wireless and AT&T, which have long led the pack among U.S. carriers.
July 8, 2018
Every time a major corporate merger is announced, pundits predictably warn of impending doom if regulators allow it to happen. Yet, pundits and regulators don’t know any better than you or I how a merger will turn out. And unlike investors and entrepreneurs, they don’t have their own money at stake, so they don’t have any incentive to innovate or react to changing conditions.
May 31, 2018
When an American company wishes to merge with or acquire another company, reaching an agreement that satisfies both firms’ owners and managers is not always enough. For most mergers and acquisitions valued at over roughly $80 million, companies must submit tons of paperwork and pay a sizable fee to the Federal Trade Commission and the Department of Justice before they can finalize any deal. Once these filings are complete, the companies can’t finalize their transaction until a waiting period of up to 30 days has elapsed.
May 9, 2018
The future has arrived, and it is a radically different economy. Havas Media’s Tom Goodwin pointed out in 2015, “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.”