Economic Freedom and Financial Security for Working People Act of 2018

Bill: 115-hr-5630
Sponsor: full_name: Rep. Cicilline, David N. [D-RI-1]
Introduced: 2018-04-26
Policy area: Commerce
Subjects: Competition and antitrust

Corporate finance and management

Labor market

Wages and earnings
Latest action: action_date: 2018-05-22
text: Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

Summaries:
action_date: 2018-04-26
action_desc: Introduced in House
text: <p><strong>Economic Freedom and Financial Security for Working People Act of 2018</strong></p> <p>This bill amends the Clayton Act to establish that a corporate acquisition that tends to create a monopsony (i.e., a situation where a single buyer substantially controls the purchasing power in a market for a good or service) is a violation of antitrust law. Currently, the Clayton Act prohibits only acquisitions that would lead to a monopoly (i.e., where a single supplier of a good or service substantially controls the market).</p>

tv_txt: I 115th CONGRESS 2d Session H. R. 5630 IN THE HOUSE OF REPRESENTATIVES April 26, 2018 Mr. Cicilline (for himself, Mr. Nadler , Mr. Ellison , and Mr. Crowley ) introduced the following bill; which was referred to the Committee on the Judiciary , and in addition to the Committee on Education and the Workforce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Clayton Act to clarify that an acquisition that tends to create a monopsony violates the Clayton Act.

1. Short title This Act may be cited as the Economic Freedom and Financial Security for Working People Act of 2018 . 2. Findings and purpose (a) Findings Congress finds the following: (1) Competition is a critical for promoting innovation and entrepreneurship, creating economic opportunity and spurring growth, promoting an equitable distribution of wealth, and ensuring choice for consumers and workers. (2) Growing concerns over declining competition are driven by evidence of higher levels of concentration, slower rates of market entry, and widening inequality gaps. Evidence also shows a decline in business dynamism, which reduces the mobility of workers. (3) In competitive labor markets, employers compete hard to provide better wages, benefits, and conditions for workers. In the absence of competition, employers in concentrated labor markets have monopsony power. If exercised, monopsony power allows employers to dictate wages and other critical factors to the detriment of workers. Employers with market power may also use anticompetitive contracts to restrict the opportunity and mobility of workers. (4) Much like monopoly power, the exercise of monopsony power can harm workers, consumers, innovation, and economic growth. (5) The antitrust laws are an important tool for promoting competition in all markets, including markets for consumer goods and services, and for inputs, including labor. (b) Purpose The purpose of this Act is to promote working Americans’ economic opportunity by ensuring that they have the full benefit of competition by amending the Clayton Act to include the term monopsony to clarify that an acquisition that tends to create a monopsony violates the Clayton Act. 3. Unlawful acquisitions that tend to create a monopsony Section 7 of the Clayton Act ( 15 U.S.C. 18 ) is amended by inserting or a monopsony after monopoly each place that term appears. 4. Study on monopsony power in labor markets Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall conduct and publish a study incorporating public comment on the economic and social effect of rising concentration in labor markets, including the impact of monopsony power on the wages and benefits, mobility, and income equality of workers, including employees and independent contractors.