The Libertarian Party of Georgia is opposed to the concept of anti-trust regulation. We are unashamed supporters of laissez faire capitalism, and therefore we oppose unwarranted government interference in private business. All too often, anti-trust laws are used by government to settle personal or ideological scores rather than protect any meaningful area of public interest.
The latest example of the abuse of anti-trust policy is highlighted at The Wall Street Journal today (December 31, 2008). The Journal’s editorial boarddiscusses the vendetta the Federal Trade Commission (FTC) has been waging against the Whole Foods grocery chain for 18 months. It is a tale of wasted resources and petty vindictiveness that demonstrates why economic matters are too important to be trusted to the government.
In mid-2007 the FTC sued to prevent a merger between Whole Foods and Wild Oats on the grounds that it would create a monopoly in organic health food sales. A federal court disagreed, permitting the merger — which has been completed. But rather than surrender to the rule of law, the FTC has continued to harass Whole Foods. Its latest tactic is to change its definition of the competitive niche that Whole Foods allegedly is monopolizing.
How does this work? In 2009, every grocery chain has a section for organic foods, and even discounters like Wal-Mart and Wegmans have gotten in the game. Yet the FTC continues to “send hither swarms of officers to harass” Whole Foods by now claiming the retailer’s merger has created a monopoly among “premium natural and organic supermarkets.” The FTC has filed an appeal of the original court approval of the merger, an appeal likely to go nowhere. But as an administrative agency, the FTC has persisted in pursuing internal administrative action against the chain.
The Wall Street Journal points out this amounts to double jeopardy — attempting to punish Whole Foods for an action for which they have already been acquitted. The Federal Trade Commission’s persistence in hounding Whole Foods demonstrates too clearly why government agencies should not be allowed to interfere with private business; and in the rare cases where oversight be appropriate, the rules must be so clear as to give bureaucracy no wiggle room to engage in vendettas.
Whole Foods will be fine. There is a good chance the change in Presidential administrations will lead the FTC to abandon its crusade. And beyond that, US House Judiciary Committee Chairman John Conyers has said he wants to hold hearings on revamping the FTC’s administrative proceedings. THIS is government action even Libertarians can support!
