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'Plutocracy Is Its Own Kind of Dictatorship,' Biden Antitrust Chief Warns in Farewell Address
"When companies larger, wealthier, and more powerful than most world governments threaten individual liberty with coercive private taxation and regulation, it threatens our way of life," said U.S. Assistant Attorney General Jonathan Kanter.
Dec 18, 2024
Assistant Attorney General Jonathan Kanter, the antitrust head at the Department of Justice who helped turbocharge the agency's efforts to rein in monopoly power, bid farewell to his post in a speech Tuesday during which he warned that "plutocracy is its own kind of dictatorship."
Kanter's deputy, Doha Mekki, will take over leading the Antitrust Division starting Friday. President-elect Donald Trump has tapped Gail Slater, a tech and media policy advisor who worked for Vice President-elect JD Vance, to permanently replace Kanter.
In his speech, Kanter described how President Joe Biden's administration had a clear mandate from the public to break with the antitrust approach of previous decades: "When I took office in 2021, questions about monopoly power were no longer just a technocratic concern relegated to the narrow halls of white-shoe law firms and elite academic institutions. Our nation was experiencing a remarkable moment unlike any I had seen in my lifetime. Americans across the country had become acutely aware of the powerful forces that were suppressing their economic freedom."
To get himself ready for the role, he looked for inspiration from the "storied trustbusters of yesteryear"—particularly Assistant Attorney General Robert Jackson, who led antitrust enforcement at the Department of Justice under FDR. "In 2021, the similarities to 1936 were unmistakable. They say that history rhymes. Well, it sure does. And this time it had 'bars,' as the youth say."
Then, as now, antitrust enforcement is an engine for economic prosperity, Kanter said. It can lower prices by limiting the market power of large companies, increase growth and prosperity by curbing corporate-imposed private regulation that "sap entrepreneurs of opportunity," and provide greater mobility and higher wages for workers, he argued.
With that "why" in mind, the division "confronted the Herculean task of operationalizing our mandate to restore, revive, and reimagine antitrust enforcement for our nation."
In many respects, Kanter was successful in that mission. During his time with the Department of Justice, the agency notched a major legal victory over the company Google, which Kanter's team and states had argued held an illegal monopoly in the search engine and advertising market. In August, a federal judge ruled that Google was an illegal monopolist for spending tens of billions on default search deals, a decision that has been called the "biggest antitrust case of the 21st century."
The Antitrust Division has also filed ongoing cases against Visa, the rent-fixing software RealPage, Ticketmaster, and others. Cases brought by the division also successfully blocked a merger between publishing giants Penguin Random House and Simon & Schuster, as well as JetBlue's acquisition of Spirit.
In response to the news that Kanter is stepping down, Nidhi Hegde, interim executive director at the American Economic Liberties Project, said Tuesday that under Kanter's leadership "the DOJ Antitrust Division has become an enforcer fit for the modern economy—and a powerful ally of American consumers, workers, and small businesses."
Kanter offered advice to future enforcers, such as engaging people outside of the Beltway and "dispel[ling] the myth that less competition at home helps the U.S. compete more abroad."
The stakes of lax enforcement are high, he warned: "When companies larger, wealthier, and more powerful than most world governments threaten individual liberty with coercive private taxation and regulation, it threatens our way of life."
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Judge Blocks Iowa Book Ban, 'Don't Say LGBTQ' Law
"We deserve to be able to express ourselves safely at school and we deserve to see ourselves in media at school, especially in books," said an eighth grade student who joined one of the lawsuits.
Dec 29, 2023
A U.S. federal judge on Friday blocked key parts of what critics called a "sweeping Iowa law that seeks to silence LGBTQ+ students, erase any recognition of LGBTQ+ people from public schools, and bans books with sexual or LGBTQ+ content."
Judge Stephen Locher determined that none of the plaintiffs in a pair of cases filed against Senate File 496 has standing to challenge the provision requiring school districts to notify parents if a child seeks an accommodation relating to gender identity, including the use of pronouns that does not match registration records.
However, Locher issued a preliminary injunction blocking enforcement of a ban on any book containing "descriptions or visual depictions of a sex act"—except for the Bible—in all public school classrooms and libraries, and a prohibition on "any program, curriculum, test, survey, questionnaire, promotion, or instruction relating to gender identity or sexual orientation" in kindergarten through sixth grade.
"This decision sends a strong message to the state that efforts to ban books based on LGBTQ+ content, or target speech that sends a message of inclusion to Iowa LGBTQ+ students cannot stand."
The law—part of a national wave of GOP-led book bans and other policies targeting LGBTQ+ youth—was passed by the Iowa Legislature and signed by Republican Gov. Kim Reynolds this spring. The Associated Press noted Friday that it "was set to take effect January 1 but already had resulted in the removal of hundreds of books from Iowa schools."
The two lawsuits against S.F. 496 were filed last month. The Iowa State Education Association, Penguin Random House, and some popular authors partnered for one of the cases. The ACLU of Iowa, Lambda Legal, and the law firm Jenner & Block also sued on behalf of Iowa Safe Schools and several students and their families—including Berry Stevens, an eighth grader from West Des Moines.
"I've known since I was in third grade that I am a part of the LGBTQIA+ community," said Stevens—whose mother, Rev. Brigit Stevens, is also a plaintiff in the case—when the suit was launched in November. "In sixth grade, I first changed my name and started using they/them pronouns because I knew I wasn't a boy or a girl. I'm just a person. This is a concept that a lot of adults have trouble understanding."
The younger Stevens explained that "I am participating in this lawsuit because this new law hurts all kinds of kids and it hurts many of my friends. We deserve to be able to express ourselves safely at school and we deserve to see ourselves in media at school, especially in books. This law is trying to shut us down and make us be quiet and not openly discuss our lives, who we like, or who we truly are."
"I know what it's like to be bullied and harassed because of being in the LGBTQIA+ community. I wish my school would do something to actually prevent bullying before it happens, not just tell kids it's wrong after the fact," they added. "But because of this law, I feel like the school is too worried about getting in trouble with the state if they try to speak out. This law gets in the way of educators trying to make a safer, more inclusive space for all students."
Another plaintiff, high school senior Puck Carlson of Iowa City, said that "like it or not, sex and sexuality are parts of the teenage experience. Refusing to provide adolescents with information about it means they'll seek out their own information—from the Internet, or from others, in ways that are significantly less safe than books reviewed by teachers or librarians."
"Removing books that discuss queer topics or people from our schools tells our queer students that they do not belong there, that their existence is shameful. I am not shameful," they added. "School is one of the main places that children read, and being able to access literature in which you can see yourself can be instrumental to a student's discovery of themselves—it certainly was to me."
In response to the judge blocking Iowa's book ban and "don't say LGBTQ" provisions, Lambda Legal senior attorney Nathan Maxwell said that "we are glad our clients, Iowa families, and students will be able to continue the school year free from the harms caused by these parts of this unconstitutional law."
"This decision sends a strong message to the state that efforts to ban books based on LGBTQ+ content, or target speech that sends a message of inclusion to Iowa LGBTQ+ students cannot stand," Maxwell added. "Lambda Legal and the ACLU of Iowa will continue our fight to ensure Iowa schools are safe for LGBTQ+ students."
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Critics Rip Private Equity Firm's Deal to Buy Simon & Schuster as 'Dark Day for Publishing'
"I guess all of corporate book publishing is beholden to investors above all else but this really makes it blatant," said one literary podcaster.
Aug 07, 2023
American literati recoiled in howls of articulate indignation Monday following news that multinational mass media conglomerate Paramount Global has agreed to sell venerable publishing house Simon & Schuster to KKR, described by one critic as "possibly the most vile example of a private equity firm that acquires, eviscerates, and kills off companies for profit."
The New York Times reports KKR will pay $1.62 billion in an all-cash deal for the 99-year-old publishing giant, which was first put up for sale in 2020.
Last October, a proposed $2.2 billion sale to Penguin Random House (PRH) collapsed after a federal judge sided with the U.S. Department of Justice (DOJ), which opposed the deal on antitrust grounds.
"I guess all of corporate book publishing is beholden to investors above all else but this really makes it blatant," tweeted Maris Kreizman, host of the Maris Review literary podcast. "As we saw in DOJ v. PRH, the people at the top truly don't know how the sausage gets made. And now a private equity firm will be at the tippy top. What could go wrong?"
Dashka Slater, the New York Times bestselling author of The 57 Bus—which won the Stonewall Book Award in 2018—said she was "horrified" to get an email from Simon & Schuster "announcing their acquisition by kleptocrats KKR."
"This is a dark day for publishing," Slater added.
According to Words Rated, an international data and analytics research group focusing on the publishing industry, over 80% of the nearly $91.4 billion annual U.S. book trade is controlled by the "Big Five" publishers—Penguin Random House, Hachette, HarperCollins, Macmillan, and Simon & Schuster.
Often referred to as "vulture capitalists" because they target financially floundering companies for acquisition before gutting their operations and personnel to maximize profit, private equity firms own or control scores of publishers, according to the market research site mergr.
KKR media chair Richard Sarnoff called the deal "a compelling opportunity to help Simon & Schuster become an even stronger partner to literary talent by investing in the expansion of the company's capabilities and distribution networks."
Jamie Ford, another Times bestselling author, had just "one question for the KKR board."
"What," he asked, "was the last book you read?"
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