Conservative Bill Takes on ‘Woke’ Boycotts

David Shaw spoke to Global Competition Review about the Eliminate Political Boycott Act, legislation introduced by the American Legislative Exchange Council that would require state governments to terminate business relationships with companies engaging in political boycotts, alleging that such conduct could also violate antitrust law.

The proposed bill appears to differ from antitrust law’s prohibitions of certain boycotts as it appears to punish companies acting independently.

“You could imagine a circumstance where a company could be making the unilateral decision not to do business that would be fine under the antitrust laws but be triggered by this proposed legislation,” David said, adding that the bill would represent a significant constraint against private entities, but its language differs from “traditional regulations” where federal enforcers outline rules that companies must respect to avoid hurting competition.

“This is regulating who the state is going to do business with,” he said. “And, clearly, this is not letting businesses do whatever businesses decide they want to do.”

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