BCW Among Coalition Opposed to Anti-Trust Bill That Would Destroy New York State’s Economy

The Business Council of Westchester is among 42 business organizations statewide that vehemently oppose the Twenty First Century Anti-Trust bill,(S335/A2015) In a letter to the Governor and Legislature, the coalition urges rejection of the legislation which is both anti-business and anti-consumer and would destroy the state’s economy.

“This legislation comes out of a national movement that intends to use New York as the stalking horse for federal antitrust reform. Advocates don’t seem to care what price New York State would pay if this bill were enacted, including fewer jobs, less tax revenue and reduced vital services for New Yorkers, less innovation and investment, and higher costs for business and consumers,” reads the letter. Adopting a New York-only antitrust standard would discourage job creation, business investment and economic growth across all sectors in New York,” the letter stated..

The letter notes an economic analysis study of the bill that shows if enacted, the bill would result in a 1% GDP loss, or $20 billion, and a loss of 58,000 jobs in the first year alone; by 2032, there would be a GDP loss of $281 billion and a loss of 597,000 jobs.

The coalition points out that the state’s most respected legal experts have analyzed the bill and concluded that it would impact all industries and companies of every size, whether directly or indirectly. Small and medium-sized businesses (SMB) that rely on digital platforms would be indirectly harmed, resulting in an estimated $47.5 billion in annual losses to SMBs across New York State, and over 265,000 SMBs would lose an average of $179,000 per business annually. These losses mean less tax revenue to the state and local governments and reduced funding for vital services.

It could also be a violation of the law to engage in ordinary and pro-competitive business practices that are beneficial to consumers, such as discounted prices, marketing incentives or exclusive agreements, if another competitor argues that this conduct harms them. 

The bill creates a first-in-nation requirement to notify a state Attorney General of M&A or similar transactions that have no direct impact on New York, creating a duplicative and huge additional burden on ordinary business transactions. In requiring any company that conducts business in New York to notify the AG of transactions, regardless of where the transaction is occurring or the extent to which it affects competition in New York.

If adopted, New York would be the only place in America where business transactions are subject to regulatory review by the New York Attorney General and private litigation based on foreign legal standards that are out of step and unfamiliar to U.S. businesses, courts, and regulators, and are inconsistent with federal law and precedent.

The law would grant a single individual — the Attorney General — authority to deem anything he or she wants as unlawful through rulemaking. This would provide the Attorney General with a disproportionate ability to influence and steer market outcomes because they (or their political supporters) do not like certain market behaviors or outcomes, even those that benefit consumers.

In conclusion, the coalition notes that in the five years since the bill was introduced, no impartial fiscal analysis has been conducted by the Legislature. Given such grave impacts this bill would have on New York economy, it would be irresponsible to even consider passage of this legislation.