Protecting the Status Quo

One of the basic tenets of antitrust law is that they are designed, and should be used, to protect competition, not competitors.  Unfortunately, all too often antitrust laws are passed, and used, to protect competitors for the obvious reason that competition benefits consumers but it hurts competitors.

We don't have antitrust laws in Vermont, but our environmental regulation laws, on the state and local level, are frequently used to protect existing firms from new competition.   For example, Costco wants to start selling gasoline at its store in Colchester.  The Free Press reports:

In papers filed with the Colchester Planning and Zoning office, attorney Jon Anderson questioned whether Costco's traffic analysis is accurate. Anderson represents R.L. Vallee, a company that has several Vermont gas stations and offices near Costco. ...He also writes in his report that Costco's plans encroach on nearby wetlands, threatening them with oil or gas spills.

I assume there's no danger of gas spills from Mr. Vallee's gas station that could run downhill into the same wetlands, nor that those gas stations generate any traffic.

Bill Simendinger, an attorney and vice president of Champlain Farms, a chain of Vermont gas stations and convenience stores, said the Costco proposal would worsen traffic congestion and increase the chances of cars' idling in lines waiting for gas.  Idling cars release pollutants and greenhouse gas emissions, Simendinger argues.

But the pollution from idling cars is evidently only a problem when it comes from Costco's gas pumps, not Champlain Farms'.

Fortunately, Matt Sutkowski, the Freeps reporter who wrote the story, understands the game that is being played here:

Some would-be competitors to Costco's gasoline sales are opposing the project, but are couching their criticisms in terms of environmental and safety concerns.

No doubt that if the Colchester Design Review Board approves Costco plan, it will then run through the next gauntlet, Act 250, with similar competitive concerns masquerading as environmental issues.

Comments

[GreggB]

Gasoline is so corporate and icky, VTers should be running their cars on clean renewable locally produced whale oil. By the way-Anybody want to invest in my organic whale farm? Organic whale farming is VT's next big green industry the wave of the future no blubber about it.

[G. Cross]

Oh my! What a relvelation, two conservative, Republican businessmen, very successful ones I suspect, have a problem with the free market. Makes one wonder!!

[G. Cross]

Sorry for the typo, revelation, revelation, revelation. There, that has been fixed.