July 21, 2024

Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project. In this installment we have:

• European Commission delays Bunge-Viterra merger decision as Canada stays mum on potential harms
• Crowdstrike-Microsoft glitch brings airlines, hospitals and banks around the world to a standstill
• Vance VP selection breaks with Republican economic orthodoxy and spooks consolidated corporate power

Let’s dive in.

EU Delays Bunge-Viterra Decision, Leaving Farmers in Limbo

The European Commission has extended its review of agribusiness giant Bunge’s proposed US$34 billion acquisition of Viterra as the companies offer European concessions to address the agency’s concerns. This development comes as Canadian regulators remain silent on their own pending review of the deal, which threatens to further consolidate global grain markets at the cost of farmers around the world.

European review of the transaction runs parallel with a damning report from Canada’s Competition Bureau which found the merger “likely to harm competition in markets for grain purchasing in Western Canada, as well as for the sale of canola oil in Eastern Canada.” Among other concerns, the Bureau noted that Bunge’s control of Viterra competitor G3 would enable coordination in the grain handling market, costing farmers millions annually.

These concerns were echoed in research from the University of Saskatchewan assessing the transaction, which estimated the deal could cost Canadian grain farmers over $700 million annually – far higher than the Bureau’s $20 million annual projection.

As regulators run out the clock on issuing a decision on the transaction, Canadian farmers are left in limbo. It remains to be seen whether the long march of consolidation that has left them with fewer options in every area of their business will continue apace or if policy makers are ready to turn the page on this lax approach to protecting competition.

When Monopolies Fail Round Two: CrowdStrike-Microsoft Meltdown Reveals Fragile Ecosystem

A single software update from CrowdStrike sent Microsoft systems worldwide into a tailspin, and suddenly it was Y2K all over again. Flights grounded, hospitals scrambling, banks shuttered, all because one tech giant stumbled. Sound familiar?​

More than a glitch, this was just the most recent and global reminder of the fragility that comes with concentrated economic power. Much like the AWS outage in December 2021 that took down large swaths of the internet, the CrowdStrike incident highlights the systemic vulnerabilities created by over-reliance on a small handful of dominant tech firms.

We’ve warned about this for years: when a single point of failure can paralyze entire industries, we’ve got a problem bigger than any blue screen of death.

CrowdStrike’s CEO George Kurtz was quick to assure us it wasn’t a cyberattack. Cold comfort, that. Whether it’s a hack or a hiccup, the result is the same: our over-reliance on tech monopolies leaves us vulnerable. It’s time for policymakers to wake up to the need for a more diverse, resilient tech ecosystem—not just for innovation’s sake, but for our collective safety as well.

Vance VP Nod Shocks Corporate America

Donald Trump’s selection of J.D. Vance as his running mate has set off alarm bells in boardrooms across America. The Ohio senator’s past praise for Federal Trade Commission (FTC) Chair Lina Khan and skepticism of unfettered free markets puts him at odds with traditional Republican pro-business orthodoxy. “I guess I look at Lina Khan as one of the few people in the Biden administration that I think is doing a pretty good job,” Vance said in February at an event hosted by startup incubator Y Combinator.

But even the Wall Street Journal’s editorial board, constant critic of Chair Khan’s aggressive trust busting, is beginning to crack under the evidence that supposedly free markets are not delivering what they promised. In an op-ed for the paper this week, writer Glenn Hubbard acknowledged that “populist conservatives argue that this traditional approach to policy misses an important objective: a disruptive, rough-and-tumble economy, guided by technological advances and globalization, one that brings everyone along. Populist conservatives want more emphasis on protecting jobs and communities.”

While Vance’s selection shows a growing understanding of the dangers of concentrated economic power on the right, it is still early days. American Economic Liberties Project’s Matt Stoller notes that the party’s establishment and donor class still wield significant influence and Vance’s populism has a selective quality. For instance, he has been outspoken about his support for oil industry consolidation.

CAMP is optimistic about the renewed focus on competition issues across the aisle in the U.S. and Canada, but we’ll be watching closely to see if rhetoric translates into meaningful action. An economy that benefits workers, consumers, and entrepreneurs alike takes more than words to bring into reality.

If you have any monopoly tips or stories you’d like to share, drop us a line at hello@antimonopoly.ca

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