MONOPSONY AND ITS IMPACT ON WAGES AND EMPLOYMENT: PAST AND FUTURE MERGER REVIEW
By Caroline C. Corbitt1
Should impact on workers’ wages be part of merger review? The question has been debated by recent scholarship that is grounded in a wider discussion about howâand ifâantitrust law can address rising inequality and falling wages in the United States.
Past merger review conducted pursuant to Section 7 of the Clayton Act has focused on evaluating potential monopoly power and anticompetitive harms. But there is a growing call for merger review to consider monopsony2 and its potential harm to workers. Monopsony refers to a situation in which a buyer of products or services has dominant market power. It differs from (and is theoretically the opposite of) a monopoly, in which a seller of products or services has dominant market power.