Washington, D.C. — A new policy brief released today by the American Economic Liberties Project explains how Amazon maintains its monopoly power, stifles local businesses, and harms local economies—and what state lawmakers can do to fight back. The policy brief, featured in a new op-ed from Pat Garofalo in the Chicago Sun Times today, comes amid ongoing legal challenges and growing public scrutiny over Amazon’s unfair business practices.

“Amazon’s dominance in the market is about much more than simply controlling e-commerce; its harms impact our local communities,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Amazon’s tactics not only stifle competition, but are deeply harmful to the workers and local businesses that form the backbone of economies across the country. We cannot continue to let Amazon bypass antitrust and tax laws, undermine labor markets, extract resources from the public, and suppress small businesses with unfair tactics. State attorneys general and the FTC are stepping up to take on Amazon’s market power, and our new brief lays out how state lawmakers can do the same, and implement policies that protect their communities from corporate giants that prioritize profits over people.”

The report highlights specific instances of Amazon’s unfair behavior, conditioning Prime eligibility on the use of Amazon’s logistics services to undermine local firms, and extracting massive subsidies for its warehouses under the guise of local job creation. These practices have led to increased prices and limited choices for consumers, while also putting undue pressure on local businesses and workers.

To address these issues, the brief proposes proactive policy solutions at the state level, including adopting an “Abuse of Dominance” standard in antitrust laws, strengthening protections against monopsony power in labor markets, eliminating Amazon’s corporate subsidies, and more. These measures aim to equip state antitrust enforcers, local officials, workers, and consumers with the necessary tools to counter Amazon’s overreach.

Read “The Local Harms of Amazon and What State Lawmakers Can Do About Them.”

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.