NYS Policy Alert: Anti-Trust Law Expansion 7/16/20

Anti-Trust Law Expansion

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Hi All,

The State Senate just finished a closed-door conference with their members ahead of next week’s legislative session. We’ve received information that the Senate has begun ongoing discussions on S.8700-A, which has a strong Senate champion and which you may have already heard about. The bill would amend NY's anti-trust law to include any actions or practices that attempt to establish a monopoly as illegal and void, and allow recoverable damages to be recovered in any action which a court may authorize as a class action.Even though at this time this is a one-house bill (meaning it does not have a companion in the Assembly, although we hear an Assembly sponsor is lined up) and the bill is unlikely to pass next week, if you have any concerns, we should relay them to the sponsor, Deputy Majority Leader Mike Gianaris, as well as to the majority counsel's office as soon as possible. The bill is likely to come back soon, as early as next month.Please note that the sponsor's memo includes this justification:Anti-trust laws are designed to promote a diverse economy by allowing for competition and preventing monopolies. Unilateral actions that seek to create a monopoly are just as harmful as contracts or agreements of multiple parties to do the same, and thus, such actions must also be banned by law. Powerful corporations, particularly in Big Tech, have engaged in practices such as temporary price reduction with the purpose of forcing competitors to sell their business to them. Such actions are contrary to the interests of the people of the state of New York and should be penalized accordingly.Please be in touch if you have any questions or would like to discuss issues with this bill.Thanks,Ryan