Private antitrust cases against Equifax, Pepsi, American Express, the Ultimate Fighting Championship, and Corteva are going through the courts. And it turns out, judges get the monopoly problem.
And corporate America is noticing.
Two days ago, Verisign, one of the economic termites that we’ve been discussing on BIG, added new risk language to its corporate annual report. Verisign is the government-designated monopolist backed by Warren Buffett that runs the registration of .com addresses. It routinely raises prices, and has operating margins of roughly 70% on $1.5 billion in revenue. Its pricing, Verisign warned, could be challenged through “publicity campaigns, governmental scrutiny, media interest and legal challenges,” which is to say, they believe they are under political and legal threat.
#1 Equifax : In 2023, I wrote up an explanation of how the credit reporting giant Equifax had monopolized an important business, which is the sale of information about our salary and income to third parties through a product line called ‘The Work Number.’ If a bank or auto dealer wants to lend someone money to buy a home or car, they need a verification that the person works where he says he works and makes the income he says he makes.
To get this information, third parties buy it from Equifax, which is pretty much a monopolist in this area, and thus can constantly raise prices.
More at the link regarding court cases against Pepsi, Corteva/Syngenta, and American Express.
Why is this important. Before a judge accepts the lawsuit; they determine if the alleged conduct is unlawful if true.
In the past, usually judges would side with corporations saying:"Yup, that’s not monopolization, it’s just tough competition, case dismissed without a trial.”
That is no longer the case.
Will this trend continue? Quién sabe?