Chuck Schumer is leading 22 other Democratic senators to push federal regulators to investigate multibillion-dollar acquisitions by ExxonMobil and Chevron, saying the deals could lead to higher prices at the gas pump. Oh, come on, guys -- when has expanding a monopoly ever not benefitted consumers? Via Associated Press:
In a letter Wednesday to the Federal Trade Commission, the lawmakers said Exxon’s proposed $60 billion acquisition of Pioneer Natural Resources and Chevron’s proposed $53 billion purchase of Hess Corp. are two of the largest petroleum deals in U.S. history and could violate antitrust law.
“These deals are likely to harm competition, risking increased consumer prices and reduced output throughout the United States,’' the senators wrote. The deals threaten to harm small operators and suppress wages, they added.
The letter is signed by 23 senators, including Minnesota Sen. Amy Klobuchar, chair of the Judiciary Committee’s antitrust panel, and antitrust hawks such as Sens. Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont.
Can you say "monopoly"? I knew you could! And since Lina Khan is the head of the FTC, odds are good that they'll look into the deal.
Schumer and other Democrats also targeted the oil industry last year, as they made a failed bid to give the FTC increased authority to crack down on companies that engage in price gouging. Responding to concerns about high gasoline prices, Democrats said the FTC needs more tools, including stiffer fines and penalties and a team of dedicated experts to monitor markets and go after price gouging.
A bill to crack down on price gouging was not approved in the last Congress. A similar bill is pending before the Senate Commerce, Science and Transportation Committee.
