AMC and the Downside of What Shares Are Truly Value
New York could change the way America handles antitrust law
The New York State Legislature will meet for another week and competition law is on the agenda. Senator Michael Gianaris told DealBook that he is confident there will be action on the “21st Century Anti-Trust Act,” a piece of legislation he sponsored that would dramatically change current standards. The conversion is necessary, said Gianaris, because “now we have a digital and tech economy that has turned everything upside down”.
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June 3, 2021, 9:10 a.m. ET
The passage of the law would put New York at the “vanguard” of a national movement 15 state and national working and policy groups wrote in a letter to lawmakers that DealBook will be the first to report. The organizations argue that the law would “curb many abusive tactics companies use against other firms and workers that are difficult to challenge under applicable antitrust law and precedent.”
With a 40 percent market share, a dominance of the market would be presumed. Companies are currently considered to be dominant when they own 70 to 90 percent of a market. “It’s not illegal to be dominant,” said Pat Garofalo of the American Economic Liberties Project, one of the groups that signed the letter. “It’s just illegal to unfairly block others from the market.” In the law, a “abuse of dominance” standard would replace the current “consumer welfare” standard.
“Where New York goes, the rest of the country often follows,” Garofalo said, and federal lawmakers could be motivated “when they see the ship leave port.”
“The draft law adopts a European standard for the definition of a monopoly”, Kathryn Wylde, who heads the partnership for New York City, a group that represents the city’s CEOs, said.
Yellen takes part in a tax race to the bottom
Treasury Secretary Janet Yellen is at the UK Treasury Group meeting starting tomorrow with a mission: to convince their global counterparts to adopt a global minimum tax and eliminate tax havens. It will not be easy.
Yellen wants to end a “race to the bottom” where countries cut their tax rates to trick companies into relocating their headquarters and shifting profits. This has to do with efforts by the Biden administration to raise the U.S. corporate tax rate, which would be more effective if fewer low-tax countries competed to woo businesses.
The US is also exerting pressure. In response to efforts by other countries to tax American digital giants, the Biden government has announced a 25 percent levy on goods valued at around $ 2.1 billion. However, tariffs have been suspended – for 180 days – while the US is negotiating with other countries.