To break up corporations in our food system, we must demand that Congress pass the Prohibiting Anticompetitive Mergers Act.

A wrecking ball that says "collective people power" knocking down the letters to the words "consolidated corporate power."

John,

Food prices are skyrocketing.1 Black farmers are being crushed under debt.2 Black-owned grocery stores have become rare, and it’s all because of anticompetitive practices within our food system, such as mergers and acquisitions as well as predatory pricing.3-5 Corporations, such as Walmart and John Deere, engage in these practices which impact the food we eat—from forgoing quality to dictating the foods that are available. We need Congress to limit these corporations’ power by passing the Prohibiting Anticompetitive Mergers Act, which would do the following:

  • Require regulators to evaluate the impacts of a merger on communities of color.
  • Ban the biggest, most anticompetitive mergers.
  • Overhaul the merger-review process to allow the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to reject deals without a court order.
  • Strengthen the FTC’s and DOJ’s tools to break up harmful mergers.6

SEND A POSTCARD TO YOUR LEGISLATORS TELLING THEM TO PASS THE PROHIBITING ANTICOMPETITIVE MERGERS ACT

When profit is the priority, corporations’ decisions to eliminate their competition harm Black-owned grocery stores, Black farmers, and Black consumers. Corporations like Walmart have put Black-owned grocery stores out of business through predatory pricing, where they undercut competitors’ prices to steal their customers.7 Then, when no competing grocery stores are left, Walmart has a history of marking up the food prices in those areas.8 Currently, Walmart takes up at least half of the grocery sales in 43 metropolitan areas and 160 smaller markets.9 Black farmers are stuck using farming equipment to produce our food from one corporation, John Deere. In the past two decades, John Deere spent billions of dollars buying up and eliminating over a dozen of its competitors through mergers and acquisitions.10-12 John Deere leverages this power to withhold repair information, parts, and tools from farmers, making repairs exclusive to them and subject to their prices. Therefore, if the farming equipment breaks, farmers are stuck paying exorbitant fees to John Deere instead of being able to go to a locally owned repair shop.13 With these anticompetitive practices, corporations are pricing small businesses and farmers out of the ability to make a living and pricing us out of affordable food. 

After squeezing small businesses, farmers, and consumers, John Deere and Walmart use their massive profits to fund advocacy efforts that protect themselves and devastate our communities. John Deere backed a lobbying group to advocate against legislation that would make its farming equipment easier to fix, while Walmart mounted a campaign to defeat the reconciliation bill that included crucial climate policies.14,15 Congress needs to limit John Deere’s and Walmart’s power by breaking them up and blocking future harmful mergers in our food system.

SEND A POSTCARD TO YOUR LEGISLATORS TO LIMIT CORPORATE POWER

Corporations have tipped the scales of power in their favor, but passing antitrust reform will help balance the scales for farmers, small business owners, workers, and consumers. Antitrust reform and enforcement would restrict predatory pricing and require these corporations to sell off their acquisitions. Right now, we need your support in demanding that Congress pass antitrust legislation—with a racial justice focus—that breaks up this consolidated corporate power. This is especially important as Big Tech companies branch out into other sectors (e.g., Amazon acquiring Whole Foods) and have hired armies of lobbyists to defeat any efforts to rein in their out-of-control power over our food systems.16 Bad policies have led to unwieldy corporations, but we have the power to dismantle them.

A better future is on the horizon—a future that centers the livelihood and well-being of Black people. Black farmers would have the freedom to implement farming practices that are sustainable and improve the quality of the food.17 There would be more Black-owned grocery stores. Black-owned businesses, which are more likely to invest in our communities, would be better able to hire from our communities and support political movements.18 Black consumers would have better options for food. But we have to act now. 

TELL YOUR LEGISLATORS WE NEED ANTITRUST REFORM

Until justice is real, 
—Jade Magnus Ogunnaike

References: 

  1. “Food prices jump 20.7% yr/yr to hit record high in Feb, U.N. agency says,” Reuters, March 5, 2022, https://act.colorofchange.org/go/351050?t=8&akid=53155%2E4731121%2EDUSlIY.
  2. Alan Rappeport, “Black farmers fear foreclosure as debt relief remains frozen,” The New York Times, February 21, 2022, https://act.colorofchange.org/go/351051?t=10&akid=53155%2E4731121%2EDUSlIY.
  3. “Predatory Pricing,” Merriam-Webster, https://act.colorofchange.org/go/344950?t=12&akid=53155%2E4731121%2EDUSlIY. 
  4. “Mergers and Acquisitions: What’s the Difference?” Investopedia, https://act.colorofchange.org/go/344951?t=14&akid=53155%2E4731121%2EDUSlIY.
  5. Tom Perkins, “Why are there so few Black-owned grocery stores?” Civil Eats, January 8, 2018, https://act.colorofchange.org/go/351052?t=16&akid=53155%2E4731121%2EDUSlIY.
  6. “Warren, Jones Introduce Bicameral Legislation to Ban Anticompetitive Mergers, Restore Competition, and Bring Down Prices for Consumers,” Elizabeth Warren, March 16, 2022, https://act.colorofchange.org/go/351053?t=18&akid=53155%2E4731121%2EDUSlIY.
  7. Stacy Mitchell, “Report: Walmart’s Monopolization of Local Grocery Markets,” Institute for Local Self-Reliance, June 26, 2019, https://act.colorofchange.org/go/351054?t=20&akid=53155%2E4731121%2EDUSlIY.
  8. Ibid.
  9. Ibid.
  10. “Mergers and acquire businesses,” U.S. Small Business Administration, https://act.colorofchange.org/go/351055?t=22&akid=53155%2E4731121%2EDUSlIY. 
  11. “Cheat to Win: The John Deere Story,” American Economic Liberties Project, October 14, 2021, https://act.colorofchange.org/go/351056?t=24&akid=53155%2E4731121%2EDUSlIY.
  12. “Competitive Effects,” Federal Trade Commission, https://act.colorofchange.org/go/351057?t=26&akid=53155%2E4731121%2EDUSlIY.
  13. Claire Kelloway, “Legal actions from all sides threaten to break up farm equipment repair monopolies,” Food & Power, February 3, 2022, https://act.colorofchange.org/go/351058?t=28&akid=53155%2E4731121%2EDUSlIY.
  14. Claire Kelloway, “Legal actions from all sides threaten to break up farm equipment repair monopolies,” Food & Power, February 3, 2022, https://act.colorofchange.org/go/351058?t=30&akid=53155%2E4731121%2EDUSlIY.
  15. Judd Legum, “Walmart calls for ‘strong climate policy now,’ backs campaign to kill strong climate policy,” Popular Information, September 30, 2021, https://act.colorofchange.org/go/351059?t=32&akid=53155%2E4731121%2EDUSlIY.
  16. Lauren Hirsch, “A year after Amazon announced its acquisition of Whole Foods, here’s where we stand,” CNBC, June 15, 2018, https://act.colorofchange.org/go/351060?t=34&akid=53155%2E4731121%2EDUSlIY.
  17. Hiroko Tabuchi and Nadja Popovich, “Two Biden priorities, climate and inequality, meet on Black-owned farms,” The New York Times, February 18, 2021, https://act.colorofchange.org/go/351061?t=36&akid=53155%2E4731121%2EDUSlIY. 
  18. Brian S. Feldman, “The Decline of Black Business,” Washington Monthly, March/April/May 2017, https://act.colorofchange.org/go/344952?t=38&akid=53155%2E4731121%2EDUSlIY.