Biden administration’s lawsuit against Amazon will hurt SC | Opinion

Small businesses play an out-sized role in supporting and driving the economy in South Carolina. They provide jobs, tax revenue and, most importantly, products and services that residents need. Small businesses also drive a culture of community when residents shop at establishments where many know the owners and develop relationships that can last a lifetime.

The Small Business Administration reports that small businesses account for approximately 99.4% of all businesses in our state. They employ over 1.09 million people, making up 42.8% of all private sector jobs. These numbers prove the critical importance these businesses and their workers hold for our state, and reveal just how acutely policy and regulatory decisions on this industry are felt.

That is why I am writing: to discourage and chide the Biden administration for acting against a tool that many of these small businesses rely upon to grow and thrive: online marketplaces.

Online marketplaces support small businesses, plain and simple. They give them the opportunity to reach customers across the country and the world. So why is the Biden administration and Federal Trade Commission (FTC) attempting to regulate and clamp down on these growth engines?

In November, the FTC filed a lawsuit against Amazon claiming that the company is monopolizing the online marketplace ecosystem and is stifling innovation and competition. But is that really true? Sellers who choose to partner with Amazon and become part of the Fulfillment By Amazon (FBA) shipping network are immediately granted access to an enormous customer base, with top-tier shipping and logistics support. This results in more sales, and better customer service. Why is this a bad thing? It’s not, but the bureaucrats in Washington are on a warpath against this new boogeyman. They are ignoring key facts.

First, businesses choose to become a part of this network. It is a business decision that is carefully considered. Second, the very existence of networks like this actively push innovation forward. If one business has a competitive advantage, it’s up to their competitors to develop technologies that will drive growth and keep pace or fall behind.

South Carolina has seen immense gains from small businesses using these tools and has become a hub for technological investment as the tech industry has a huge footprint in our state. In the past year, technology companies have invested more than $12 billion. In 2022, Google supported $6.04 billion of economic activity for our citizens. Amazon has invested more than $6.3 billion since 2010.

These companies, among others, employ roughly 54,000 people and are expected to hire more in the coming years. Investments like this not only benefit the state via direct investment, they also create ancillary opportunities such as indirect jobs in fields such as construction and professional services.

While it may be politically advantageous to stoke fears of market manipulation and monopolies to persecute businesses this administration doesn’t agree with, it leaves small business owners and their customers behind. If this FTC lawsuit is allowed to come to fruition, the consequences would be disastrous. Higher prices, less choice, less growth and less opportunity.

We need a president and an administration that supports growth, innovation and small businesses. As inflation continues to stifle families and businesses nationwide, let’s not put more weight on the already struggling backbone of many economies across this country: small business.