[Editor’s note: This story originally was published by Real Clear Markets.]
By Daniel Savickas
Real Clear Markets
Sometimes, especially in politics, the slippery slope fallacy is not a fallacy at all, but merely a basic observation. Perhaps nothing in the last year or two has illustrated that better than many GOP politicians flirting with a return to the Teddy Roosevelt era of the Republican Party.
The desire to weaponize antitrust against big tech companies these politicians see as biased against conservatives has opened the floodgates for Democrats to use it in all sorts of ways. Republicans now stand unable to push back without being hypocrites on the issue. That is exactly what we are seeing take place in New York.
While Republicans look back to Roosevelt, Democrats in New York are now taking that a step further, taking their cues from modern day Europe. Antitrust in the U.S. typically seeks to protect consumers from harmful behavior. Europe, on the other hand, also seeks to protect competitors from what they call, “abuse of dominance.” Even when there’s no consumer harm, regulators will step in.
With this logic, if Company A sets its prices below that of a competitor, Company B, and Company B loses business, the Attorney General could sue Company A on behalf of Company B. You’ll notice that consumers still have two viable options and prices are going down.