New York could face significant economic challenges if state-level antitrust laws like the New York Twenty-First Century Antitrust Act are enacted, according to a recent study by the CCIA Research Center. The report, titled “Assessment of Economic Costs of Imposing Abuse of Dominance Standards in New York State,” projects a $24 billion GDP loss, 61,000 job eliminations, and an average wage decrease of $692 per worker within the first year.
The proposed legislation would establish a more stringent state-level antitrust regime compared to federal standards for companies operating in New York. Over the next decade, the negative impacts could grow significantly, resulting in a projected GDP loss of $318 billion, 615,000 fewer jobs, and an average lost wage per worker of $9,283.
The Twenty-First Century Antitrust Act is noted for its potential adverse effects on New York's economy as similar policy proposals gain traction across the United States. The inclusion of "abuse of dominance" language may lead to increased regulatory burdens and uncertainty for businesses.
High compliance costs and legal uncertainties associated with these regulations could deter investment and stifle growth and innovation in New York. The CCIA study warns that lowering the threshold for litigation under this act might inundate businesses with costly lawsuits.
Trevor Wagener, Chief Economist and Research Center Director at CCIA, commented on the findings: “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.”