Corporate consolidation leads to increased lobbying spending: study
As industries become increasingly dominated by a small number of firms, they tend to spend more on federal lobbying, according to a new study published Wednesday.
The American Economic Liberties Project, an anti-monopoly group, found the correlation to be most apparent in the tech industry, which has steadily increased its lobbying spending over a 10-year period as the industry titans such as Amazon, Google and Facebook bought hundreds of competitors.
âConcentrated markets are bad for consumers, bad for workers and bad for innovation. But this research suggests that America’s concentration crisis is even more than a purely economic problem – it’s also a democracy problem, âsaid Reed Showalter, group member and study author.
Big tech companies and powerful firms in other industries have aggressively pressured lawmakers to influence antitrust invoices advances by the House Judiciary Committee in June, including legislation that would make it easier for regulators to dismantle larger companies.
In the first half of the year, Amazon and Facebook spent $ 10.2 million and $ 9.6 million on lobbying, respectively, more than any other company.
The American Economic Liberties Project is one of many recently launched groups pushing lawmakers to aggressively enforce antitrust regulations. The group successfully urged President BidenJoe BidenUS & Israeli Security Officials Talk Iran & Palestinians In Washington Over Money – Presented By NRHC – Biden Plays Hard With Debt Limit With The Long, Winding Road Of Bill McConnell Highway MORE to appoint several Big Tech critics to his administration.
The group’s study found that the increase in lobbying spending typically occurs a few years after an industry has become more highly concentrated, suggesting that dominant companies are more threatened by potential government regulation than by competition. industry as they develop.
He found that the correlation between corporate consolidation and lobbying spending also applies to the pharmaceutical and oil and gas industries. The report cites figures from lobbying the money watchdog in the OpenSecrets policy and measures market concentration levels using the Herfindahl-Hirschman Index.