@jjoelson You’ve anticipated my response! Yes, sometimes large firms deploy market power on behalf of their own interests AND consumer welfare when they overlap, and it may be tempting to celebrate that. But it often works out badly. Firms with market power are simply not who we want acting quasigovernmentally on behalf of the public. As imperfect as our democracy is, their ability to weigh conflicting interests, and the bias imposed by the profit incentive, render the approach dangerous. 1/

@jjoelson The quintessential example is WalMart. In the 1990s, many of us (me too!) celebrated how WalMart was openly deploying its monopsony power (the power that comes from being a near-“monopoly” buyer, rather than seller) to squeeze suppliers for lower prices, even offering free consulting services to help them reorganize more “efficiently”. 2/

@jjoelson The net result seemed great at first — every day low prices! — but WalMart’s efforts destroyed many US companies by making them little Boeings, in the way we now understand Boeing to have destroyed itself. Plus, WalMart contributed hugely to the offshoring of American manufacturing to places where “low cost” (meaning often sweatshop or near enslaved) labor could be employed to cut costs. 3/

@jjoelson This was regrettable self-interestedly (offshoring US manufacturing so thoroughly has been a catastrophe for the US), and ethically (though that’s a more complicated case, you can argue that sweatshop near-slaver to multinationals is the first rung on a ladder to China style development, so is it “worth it”?). WalMart in any case continued relentlessly, because all the offshoring and price restraint contributed to its profitability. 4/

@jjoelson WalMart exercised its market power very openly and flagrantly against its suppliers, but under the then prevailing consumer-welfare standard, it was immunized from antitrust attention, since its exercise of market power seemed (under the narrow terms of antitrust analysis of the time) to be in consumers’ interest. 5/

@jjoelson You are right, I think, that sometimes Apple has used its market power where its interests and consumers have been aligned. Steve Jobs’ hard bargains with cell carriers may have been good for consumers as well as Apple. (With ebooks, there’s some irony, Apple was breaking Amazon’s WalMart-like use of monopsony prices to restrain ebook prices to $9.99! Was that “good”, because breaking the monopsony, or bad because raising consumer prices?) 6/

@jjoelson Given the world as it was, maybe Apple taking on these roles was at least provisionable laudable. But the world as it was, where the government had abandoned its role in regulating and structuring market competition, is exactly what DoJ now is trying to revise. Apple is just one of many firms that — very much rightly, in my view — will have to revise how it does business in light of a new and ultimately better reality. /fin