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1 1 (April 6, 2022)

handle is hein.crs/govefnx0001 and id is 1 raw text is: Congressional *.Research Service ~~~ ~informing the egislative debate since 1914___________________ Antitrust Issues in Labor Markets April 6, 2022 The typical antitrust case involves sellers in a product market. For example, rival manufacturers might conspire to fix the price of memory chips. A tobacco giant may monopolize the cigarette industry. The merger of two large agriculture firms might threaten to significantly reduce competition in the markets for various seed products. The potential harm in each case is similar. Cartels and monopolists raise prices by restricting output, while concentrated markets are often susceptible to coordinated conduct and unilateral price hikes. As a result, production that would have taken place in a competitive market does not occur-a deadweight loss. Noncompetitive product markets also lead to wealth transfers from consumers to producers, which some commentators have cited as a contributor to economic inequality. While most antitrust cases concern sellers in product markets, comparable problems arise in employment markets, where firms often exercise market power as buyers of labor. For example, rival tech companies might enter into no-poach arrangements that prevent them from recruiting each other's workers. Fast-food restaurants may require employees to sign non-compete agreements that bar the employees from working for a competitor during a defined period. A hospital merger could significantly reduce competition in the labor market for nurses. The results can include lower wages, decreased output, and greater inequality. Many commentators are increasingly concerned about these issues. Several academics have recently called on antitrust enforcers to take a more aggressive posture toward anticompetitive conduct in labor markets. Policymakers have responded. The White House, the Department of Justice (DOJ), the Federal Trade Commission (FTC), and the Treasury Department have all expressed interest in the role that antitrust can play in combatting labor market power. Regulators have some tools at their disposal. As a formal matter, the antitrust laws apply to all markets, for products and labor alike. Certain conduct-like naked wage fixing (see below)-is per se illegal under current law. In other cases, however, legislation could help plaintiffs grapple with doctrinal difficulties and practical barriers they might face in labor-side antitrust lawsuits. This Sidebar provides an overview of the current state of antitrust law vis-i-vis labor markets and proposals for legislative reform. Congressional Research Service https://crsreports.congress.gov LSB10725 CRS Legal Sidebar Prepared for Members and Committees of Congress

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