Washington – The U.S. could face a $123 billion GDP loss and the elimination of 346,000 jobs within the first year if states enact stringent antitrust laws similar to New York's Twenty-First Century Antitrust Act, according to a new study. The research also projects that these negative effects will increase over time, resulting in a 4.4% GDP loss of $1.7 trillion and 3.5 million fewer jobs over the next decade. The Computer & Communications Industry Association’s Research Center released the study titled “Assessment of Economic Costs of Imposing Abuse of Dominance Standards at the State Level,” highlighting the adverse impacts of the New York proposal.
The study emphasizes that state-level antitrust policies, particularly the Twenty-First Century Antitrust Act, could significantly harm the state's economy. It argues that including "abuse of dominance" language would create excessive regulatory reach and uncertainty for potential violations. This term refers to actions by companies with dominant market positions that negatively impact other businesses, establishing stricter state-level regulations than federal ones for all companies operating in New York.
The heightened likelihood of intervention could inhibit efficient business behaviors benefiting consumers, especially in the technology sector. The proposed law targets successful corporations popular among consumers, particularly tech companies, characterizing their popularity as dominant market positions to impose costly regulations on workers, consumers, and businesses in New York.
Excessive regulatory burdens on tech companies could stifle growth and innovation—key elements in today's economy driven by social media and technology. High compliance costs and legal uncertainties may discourage investment, leading to a substantial reduction in New York’s GDP and job creation, according to the CCIA study. Additionally, lowering the threshold for individuals and companies to sue for damages under this act could result in costly litigation that might further deter business operations and investments in the state.
Trevor Wagener, CCIA Chief Economist and Research Center Director stated: “The economic repercussions of enacting state-level ‘abuse of dominance’ laws would reverberate both nationally and internationally, given the substantial presence of leading companies, particularly tech firms, operating in U.S. states. Over a decade, such legislation could precipitate a staggering $1.7 trillion GDP loss and the elimination of up to 3.5 million jobs across the country. Such extensive economic fallout would bear severe consequences for the broader American and global economy.”
