Pluralistic: The first days of Boss Politics Antitrust (24 Jan 2025)


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An altered version of a Gilded Age editorial cartoon titled 'Who controls the Senate?' which depicts the Senate as populated by tiny, ineffectual politicians ringed by massive, bloated, brooding monopolists. A door labeled 'people's entrance.' is firmly locked. A sign reads, 'This is a senate of the monopolists, by the monopolists and for the monopolists.' The image has been altered: an editorial cartoon of Boss Tweed, portrayed as a portly man in a business suit with a money-bag for a head, stands in the foreground. He is wearing a MAGA hat. On his shoulder perches a tiny, 'big stick' swinging FDR from another editorial cartoon. The logos of the monopolists in the background have been replaced with logos for Chevron, Coinbase, Google, Microsoft, WB, PGA, Apple, Comcast, Realpage and KKR.>

The first days of Boss Politics Antitrust (permalink)

"Boss politics" are a feature of corrupt societies. When a society is dominated by self-dealing, corrupt institutions, strongman leaders can seize control by appealing to the public's fury and desperation. Then, the boss can selectively punish corrupt entities that oppose him, and since everyone is corrupt, these will be valid prosecutions.

In other words, it's possible to corruptly enforce the law against the guilty. This is just a matter of enforcement priorities: in a legitimate state, enforcers prioritize the wrongdoers who are harming the public the most. Under boss politics, priority is given to the corrupt entities that challenge the boss's power, without regard to whether these lawbreakers are the worst offenders. Meanwhile, worse wrongdoers walk free, provided that they line up behind the boss.

This is how Xi Jinping prosecuted his purges in the run up to his lifetime appointment as Party Secretary (2012-2015). Xi prosecuted the guilty, but not the most guilty. The public officials who were defenstrated and/or imprisoned during Xi's purges were all corrupt, but they were also the power base of Xi's rivals. Meanwhile, corrupt officials in Xi's own orbit were untouched:

https://web.archive.org/web/20181222163946/https://peterlorentzen.com/wp-content/uploads/2018/11/Lorentzen-Lu-Crackdown-Nov-2018-Posted-Version.pdf

Trump is a classic boss politician – that's what people mean when they call him "transactional": he doesn't act out of principle, he acts out of self interest. The people who give him the most get the most back from him. This means that Biden's brightest legacy – militant antitrust enforcement of a type not seen in generations – is now going to become "boss antitrust," where genuine monopolists are attacked under antitrust law, but only if they oppose Trump:

https://pluralistic.net/2024/11/12/the-enemy-of-your-enemy/#is-your-enemy

We're now living through the first days of boss antitrust. Remember all those monopolistic tech billionaires who donated millions of dollars to Trump's inauguration and arranged themselves in a decorative semicircle behind him on the dias? Trump just went to Davos to speak up for them, arguing that EU and other offshore prosecutions of these companies were attacks on "American businesses" and saying he would defend them with the full might of the US government (this is the same government that, under Biden, secured multiple convictions against these same companies for monopolistic conduct):

https://gizmodo.com/trump-returns-big-techs-ass-kissing-at-davos-2000554158

The Federal Trade Commission has lost its Biden-era chair, the extraordinary Lina Khan, who did more in four years than all her predecessors did in the preceding forty years, combined. The new chair is Republican Andrew Ferguson, whose first day on the job was a bloodbath, in which he killed off multiple, significant actions aimed at producing real, material benefits from Americans who are being absolutely screwed by corporations:

https://prospect.org/politics/2025-01-24-executive-action-reaction-day-4/

Ferguson killed off a public comment process on "surveillance pricing," where companies spy on you and then reprice their goods based on their estimation of how desperate you are:

https://pluralistic.net/2025/01/11/socialism-for-the-wealthy/#rugged-individualism-for-the-poor

Uber pioneered this when they started increasing the cost of cab rides for riders whose phone batteries were about to die. But other companies took it way further: McDonald's is co-owner of a company called Plexure that sells companies the ability to charge you more for your normal order at the drive-through if you've just been paid:

https://pluralistic.net/2024/06/05/your-price-named/#privacy-first-again

But surveillance pricing is even worse for workers than it is for shoppers. Nurses in the USA increasingly work for Uber-like nurse-on-demand apps like Shiftkey, Carerev and Shiftmed. These apps can buy nurses' financial data from the unregulated data-broker industry, and then offer nurses with overdue credit-card bills lower wages, on the grounds that they're so desperate they'll take a paycut:

https://pluralistic.net/2024/12/18/loose-flapping-ends/#luigi-has-a-point

Ferguson also killed off a notice-and-comment action on predatory pricing – when companies sell goods below cost in order to destroy competitors, then drive up prices. This is what Uber did, setting $31b of Saudi royal money on fire over 13 years, losing $0.41 on every dollar they brought in. This killed off all the regular taxis, and convinced city governments to abandon public transit investment on the grounds that Uber was cheaper than a bus. Once they'd captured the market, Uber doubled the price of a ride and halved the wages that they paid drivers.

So this is what Ferguson has killed off. In its place, Ferguson has instituted an internal action, aimed at rooting out "DEI" and "wokeness." The agency's top priority right now is running a snitch line where FTC officials can rat each other out for being anti-racist. This isn't just offensive, of course – it's also deeply unserious. Even if you stipulate that "woke" has some meaning (it doesn't, but go with me here), then killing off all the "woke" at the FTC will not make Americans more prosperous, let alone protect them from corporate predators.

In his dissenting statement, FTC Commissioner Alvaro Bedoya didn't mince words:

Andrew Ferguson could have made his first public act as Chairman a motion to study the rising cost of groceries. He could have acted on a pending public petition from a group of wall and ceiling contractors to investigate how lawbreaking contractors can effectively rig contract competitions in the commercial construction industry. He could have moved to investigate a pending public petition from shrimpers from Louisiana, Mississippi, and Alabama to investigate potentially false and misleading claims about shrimp imports from India that are farmed with forced labor and shot full of antibiotics…

I have met with corn growers and cattlemen in Iowa. I have met with shrimpers in Biloxi. I have met with pharmacists in Knoxville, grocers in Tulsa, and patients and their doctors in Charleston, West Virginia. I met with the men who build Miami’s million-dollar skyscrapers in 110-degree heat.

Let me tell you what they didn’t talk about: “DEI.”

What they do talk about is how powerful companies are skirting or abusing the law to force farmers, workers, and small businessmen to do what they want, when they want, or else. How the government isn’t doing anything about it. And how they’re going broke because of it.

But Chairman Ferguson seems uninterested in the challenges that regular human beings face.

https://www.ftc.gov/system/files/ftc_gov/pdf/bedoya-statement-emergency-motion.pdf

Bedoya is still hanging in there at the FTC; these administrative agency appointments outlast the presidents that made them. It's common for agency heads to step down when there's a changeover – Lina Khan didn't stay – but the commissioners often hang in there. I hope Bedoya stays at the FTC: he's one of the good ones and we're all better off for his presence.

There's one Biden agency head who hasn't left, and surprisingly, it's one of Biden's best appointees: Rohit Chopra, head of the Consumer Finance Protection Bureau. Chopra is the first CFPB head to explore just how much power this new-ish agency has, and has seen his far-reaching, muscular regulations upheld unanimously by the Supreme Court.

Trump's corporate backers hate the CFPB, and Elon Musk really hates the CFBP, and crypto grifters really, really hate the CFPB. Ironically, the demonization of the CFPB seems to be the key to Chopra's enduring tenure. According to David Dayen at The American Prospect, no one in Trumpland wants his job. The Supreme Court ruled in 2020 that presidents can fire CFPB heads, but there's no one who wants to replace Chopra and take their turn in the barrel:

https://prospect.org/economy/2025-01-24-rohit-chopra-still-has-a-job/

Chopra's using his time well: he's brought a flurry of new actions, most lately against the credit bureau giant Transunion. And in the final weeks of the Biden administration, Chopra launched a whole boatload of enforcements, investigations, and other actions against the most predatory companies in America. As Dayen notes, over the past four years, Chopra has forced American rip-off businesses to pay back $6b in stolen loot, and to cough up more than $3.2b in fines.

Replacing Chopra is hard for Trump in part because Trump has imposed a federal hiring freeze. That means that anyone who replaces Chopra has to already be working for the US government, and all the finance grifters are cashing out of the government to go work for giant financial institutions they've been carrying water for while drawing a public salary. Even the people who might take the job can't, because then no one could be hired to do their job – for example, there's a ghoul at the FDIC who'd fit the bill, but if he takes over from Chopra, then the FDIC will have just two members. If the GOP stooge on the FCC quits to take the job, then the Democratic commissioners will have a majority. You love to see it, really.

But – as Dayen points out – they're almost certainly gonna give Chopra the axe eventually. When they do, the CFPB will continue to do some enforcements. It's likely that Ferguson will eventually direct the FTC to do something apart from peering under their beds looking for "woke." When they do take action, they'll probably take action against companies that are wildly, lavishly corrupt. After all, that describes basically all of American big business, a sector that has festered thanks to 40 years of antitrust negligence.

It will be tempting for Trump's opponents to decide that if Trump hates these giant, evil companies, well, then, they must be good. Think of when "progressives" fell in love with the "intelligence community" just because a couple spooks decided they hated Trump. The FBI isn't your friend, folks – this is the agency that tried to blackmail MLK into killing himself:

https://en.wikipedia.org/wiki/FBI%E2%80%93King_letter

The enemy of your enemy? Still your enemy, provided that they're a big, predatory monopolist. Boss politics is about punishing corruption – selectively. Trump-style antitrust is going to target a ton of bad businesses. That won't make them good.

Hey look at this (permalink)


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Object permanence (permalink)

#20yrsago 1970s Homebrew Computer Club newsletter scans https://www.digibarn.com/collections/newsletters/homebrew/

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#10yrsago San Francisco ponders letting luxury property developers take away symbolic “public spaces” https://socketsite.com/archives/2015/01/little-known-public-open-spaces-soon-history.html

#5yrsago Cheating term-paper-for-pay businesses recruited customers through subsidized on-campus parties https://www.edsurge.com/news/2020-01-23-how-the-contract-cheating-industry-has-gotten-more-aggressive-in-recruiting-students

#5yrsago The cum-ex scam stole $60b from European tax authorities: it’s monumentally boring, complicated, and very, very important https://www.nytimes.com/2020/01/23/business/cum-ex.html

#5yrsago Chicago PD’s predictive policing tool has been shut down after 8 years of catastrophically bad results https://twitter.com/sh4keer/status/1220470166355468288

#5yrsago The answer to the Clearview AI scandal is better privacy laws, not anti-scraping laws https://memex.craphound.com/2020/01/25/the-answer-to-the-clearview-ai-scandal-is-better-privacy-laws-not-anti-scraping-laws/

#5yrsago I reviewed William Gibson’s novel “Agency” for today’s LA Times https://www.latimes.com/entertainment-arts/books/story/2020-01-24/agency-william-gibson

#5yrsago Warner claims ownership over the numbers 36 and 50, and demonetizes Youtube videos that incorporate them https://www.dexerto.com/entertainment/annemunition-bizarre-copyright-strike-youtube-random-numbers-1317750/

#1yrago Tabs give me superpowers https://pluralistic.net/2024/01/25/today-in-tabs/#unfucked-rota

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  • Picks and Shovels: a sequel to "Red Team Blues," about the heroic era of the PC, Tor Books, February 2025

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Colophon (permalink)

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