WASHINGTON D.C.—Ahead of today’s debut of the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law’s series of hearings on legislative proposals addressing the rise and abuse of market power, Aurelien Portuese, ITIF’s Director for Antitrust and Innovation Policy, released the following statement:
These hearings are an excellent opportunity to begin envisioning the possible directions for antitrust reforms. Digital innovation generates countless benefits for society but also calls for regulations; it is therefore crucial for any legislative proposal, such as the Competition and Antitrust Law Enforcement Reform Act of 2021, to ensure that envisaged regulations are duly embedded into an innovation-based approach. Such an approach would best respond to market realities without assuming that large companies are inherently harmful to society, and would instead best promote consumer welfare and a competitive environment conducive to an ever-increasing number of innovations.
Congress must avoid the pitfalls of a static approach for the regulation of dynamic markets, and should push for regulation that ultimately helps foster, preserve, and increase innovation as an essential source of competition. Congress should not disregard this fundamental aspect of competing through innovation. Otherwise, future antitrust reforms will generate costs for consumers and deter innovation. Instead, it must ensure that firms’ innovation capabilities enable competition, ultimately benefiting American consumers.
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