A report by the Institute For Public Policy Research and Common Wealth suggests that major energy and consumer companies contributed to higher and more persistent inflation in 2022 by passing on greater cost increases than necessary to protect their margins. The report argues that market power, particularly in the oil and gas, food production, and commodities sectors, amplified inflation. The analysis of financial reports from 1,350 companies found that nominal profits were on average 30% higher at the end of 2022 compared to the end of 2019, indicating that higher prices were shouldered by consumers. The report highlights the need to consider the impact of corporate profits and market power in the current debate on inflation.
The antitrust case against Google draws parallels to the landmark lawsuit against Microsoft 25 years ago, with both tech giants accused of using their dominant market power to stifle competition. However, the Google trial lacks the same cultural impact as the Microsoft proceedings, which captivated the public and media attention. While Microsoft was a singular tech titan with Bill Gates as a national icon, Google is now just one member of the Big Tech club, alongside Amazon, Apple, Meta (Facebook), and Microsoft, all of which are under scrutiny. The outcome of the Google trial will depend on the evidence presented, and while the legal theory mirrors the Microsoft case, the government has acknowledged that its evidence lacks the vivid language seen in the Microsoft trial.
Italian consumer rights group, Assoutenti, has called for a consumer "pasta strike" for fifteen days, blaming corporate profiteering for the surge in pasta prices, despite wheat prices being down significantly. This echoes a successful effort in 1914 by the Providence, Rhode Island Italian Socialist Club to resist price gouging by the "Macaroni King" Frank Ventrone. The lesson is that prices and inflation are not mechanical forces of nature, but always the outcome of multiple social forces, and that collective bargaining through a socialist organization tempered the monopoly power of a local retailer, bringing prices closer to the "competitive price."
Germany's antitrust regulator, the Federal Cartel Office, has launched an investigation into Microsoft's market power and whether the company is abusing its dominant position in the market. The probe will focus on Microsoft's Office suite of software, which is widely used in Germany, and whether the company is using its market position to force customers to use its cloud-based services.
