Rep. Cicilline says, “you can be one or the other. You can't set all the rules, control the marketplace, and also sell on it.” What he forgets is that vertical integration benefits consumers and businesses alike. If America followed Cicilline’s way, this new law would drive up the prices of everyday goods. In fact, it would be illegal for CVS to sell generic over-the-counter medications, leaving low-income Americans with fewer options and higher prices.
And don't forget the beneficial effect that private brands have on competition within a store:
And most consumers like having these generic brands as options because they’re cheaper, force prices down of name brands, and can even push companies to improve their quality.
So who benefits from this? Rival brands.
BOTTOM LINE: Antitrust laws protect competition, not competitors.
TRUTH IN BLOGGING DISCLOSURE: I wear only Kirkland.