Washington – New York could suffer a staggering $24 billion GDP loss, the elimination of 61,000 jobs, and an average lost wage per worker of $692 within just the first year if states enact draconian antitrust laws like the New York Twenty-First Century Antitrust Act. The bill could create ripple effects that will reverberate throughout the global market, according to projections in a new CCIA Research Center study, “Assessment of Economic Costs of Imposing Abuse of Dominance Standards in New York State.” In fact, the bill would create a state-level antitrust regime that is stricter than the federal antitrust regime for companies operating in New York.
The research also finds that the negative effects of the law will grow over time, costing New York a GDP loss of $318 billion, 615,000 fewer jobs, and an average lost wage per worker of $9,283 over the next decade.
As state-level antitrust policy proposals expand across the United States, the Twenty-First Century Antitrust Act stands out for its potentially profound negative effects on the state’s economy. According to the study, the inclusion of “abuse of dominance” language would create undue regulatory reach and uncertainty for businesses.
Excessive regulatory burdens could stifle growth and innovation. High compliance costs and legal uncertainties may discourage investment, leading to a substantial reduction in New York’s GDP and job creation, the CCIA study found. Additionally, the Twenty-First Century Antitrust Act lowers the threshold for individuals and companies to sue for damages, potentially flooding New York businesses with costly and time-consuming litigation.
The following can be attributed to CCIA Chief Economist and Research Center Director Trevor Wagener:
“The economic repercussions of enacting state-level ‘abuse of dominance’ laws would reverberate globally given the substantial presence of leading companies operating in U.S. states. Over a decade, such legislation could precipitate a staggering $318 billion GDP loss and the elimination of up to 615 thousand jobs across New York State. Such extensive economic fallout would bear severe consequences for the broader American and global economy.”
