Today, I’m writing about judges. Most political discourse about the judiciary is partisan, and focuses on the Supreme Court, and the various important policy choices on social questions that body organizes. Of late, Clarence Thomas has been in the crosshairs over gift disclosures. And an obscure conservative activist named Leonard Leo, who picked most of the judges during the Trump administration, is also in the news for receiving a $1.6 billion donation to engage in political advocacy.
But when it comes to judges, a partisan lens obscures more than it illuminates. The truth is, in terms of corporate power, judges from both parties are subverting anti-monopoly policy. To show how, I’m going to focus on a newly appointed Biden judge, Ana C. Reyes, who is right now hearing a case in D.C. that involves a multi-billion dollar merger of two residential hardware tech firms, Assa Abloy and Spectrum Brands. It isn’t a high-profile case, but it is precisely when people aren’t watching that you see how the system works.
“It is the people, and not the judges, who are entitled to say what their Constitution means, for the Constitution is theirs, it belongs to them and not to their servants in office—any other theory is incompatible with the foundation principles of our government.” – Teddy Roosevelt, 1912
The Biden administration, and increasingly both parties, have moved to skepticism towards consolidated corporate power. In 2016, the Republicans and Democrats included commentary about anti-monopoly in their party platforms for the first time in decades. Both Trump and Biden brought ground-breaking antitrust suits against Google, and experts on both sides have come to recognize that there is a serious monopoly crisis in America, with a lack of competition across the board in sectors as diverse as search engines, agribusiness, and airlines. This concentration crisis fosters inequality, damages innovation and productivity, harms incomes, and transforms entire industries into ‘kill zones’ where no one will invest.
A recognition of the problem is shaping policy. In the summer of 2021, the Biden administration issued an executive order making competition a centerpiece of the White House’s economic agenda, with minimal pushback from the GOP. Biden is following a broader social trend of seeing markets as politically constructed.
Last year, Congress moved for the first strengthening of antitrust law in decades, allowing state AGs an easier time to bring cases. It also passed the CHIPS Act, recognizing that semiconductors matter to the U.S., and that the ‘free market’ isn’t a thing. Similar deliberate policy choices are happening in electric vehicles, solar panels, and fossil fuels.
The national security world is a key forum for this debate; military leaders have recognized the devastation that monopolies have wrought on the defense base. Indeed, Jake Sullivan, the head of the National Security Council, offered a death knell to the old philosophy when criticizing America’s old global economic strategy vis-a-vis China. “There was one assumption at the heart of all of this policy,” he said, “that markets always allocate capital productively and efficiently—no matter what our competitors did, no matter how big our shared challenges grew, and no matter how many guardrails we took down… The shocks of a global financial crisis and a global pandemic laid bare the limits of these prevailing assumptions.” Here too there are consequences; the Department of Defense and Federal Trade Commission worked together to block the merger of Lockheed Martin and Aerojet.
And yet, this epiphany, that markets are politically structured and don’t have a will of their own, hasn’t made it to one very important place: the judiciary. The same week Sullivan gave his speech, a panel of three D.C. Circuit Court judges struck down a monopolization case against Facebook on the grounds that markets self-correct. “Many innovations may seem anti-competitive at first but turn out to be the opposite,” wrote the panel, “and the market often corrects even those that are anti-competitive.” The D.C. Circuit Court panel was bipartisan, and included Republican appointees Karen L. Henderson and Raymond Randolph, as well as Obama appointed judge Robert Wilkins.
These words undermine Congressional statute, and may devastate the ability to use antitrust law against digital platforms, at least in the D.C. Circuit. The specific procedural question was on the right of state attorneys general to bring an antitrust case over a violation that happened years earlier, as Federal enforcers can. Three judges made a policy decision to disallow that, even as Congress had just passed a law a few months earlier to make it easier for states to participate in antitrust enforcement.
In other words, the power of judges is massive, and judges openly and often thwart the will of Congress. And this power is not necessarily based on partisan or traditional ideological affiliations. Take another case. Last week, . . .