HF 4143

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/10/2022 03:40pm

A bill for an act
relating to consumer protection; regulating monopoly and monopsony power;
amending Minnesota Statutes 2020, sections 325D.50, by adding subdivisions;
325D.52; 325D.53, subdivision 1; 325D.54; 325D.56, subdivisions 1, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 325D.50, is amended by adding a subdivision
to read:

Subd. 4a.

Monopoly power.

"Monopoly power" means the power to control prices or
exclude competition. A firm has monopoly power if the firm is able to profitably raise prices
substantially above the competitive level for a significant period of time. A firm also has
monopoly power if the firm can exclude competitors.

Sec. 2.

Minnesota Statutes 2020, section 325D.50, is amended by adding a subdivision to
read:

Subd. 4b.

Monopsony.

"Monopsony" means a market condition where only one buyer
exists.

Sec. 3.

Minnesota Statutes 2020, section 325D.50, is amended by adding a subdivision to
read:

Subd. 4c.

Monopsony power.

"Monopsony power" means an individual buyer is able
to influence demand and price for a good or service.

Sec. 4.

Minnesota Statutes 2020, section 325D.52, is amended to read:

325D.52 ESTABLISHMENT, MAINTENANCE, OR USE OF MONOPOLY
POWER.

The establishment, maintenance, or use of, or any attempt to establish, maintain, or use
monopoly or monopsony power over any part of trade or commerce by any person or persons
for the purpose of affecting competition or controlling, fixing, or maintaining prices is
unlawful. Evidence of procompetitive effects is not a defense to using monopoly or
monopsony power to affect competition or control, fix, or maintain prices, and does not
offset or cure competitive harm.

Sec. 5.

Minnesota Statutes 2020, section 325D.53, subdivision 1, is amended to read:

Subdivision 1.

Price fixing, production control, allocation of markets, collusive
bidding, and concerted refusals to deal.

Without limiting section 325D.51, the following
shall be deemed to restrain trade or commerce unreasonably and are unlawful:

(1) A contract, combination, or conspiracy between two or more persons by any person
in competition:

(a) for the purpose or with the effect of affecting, fixing, controlling or maintaining the
market price, rate, or fee of any commodity or service;

(b) affecting, fixing, controlling, maintaining, limiting, or discontinuing the production,
manufacture, mining, sale or supply of any commodity, or the sale or supply of any service,
for the purpose or with the effect of affecting, fixing, controlling, or maintaining the market
price, rate, or fee of the commodity or service; or

(c) allocating or dividing customers or markets, functional or geographical, for any
commodity or service.

(2) A contract, combination, or conspiracy between two or more persons by any person
whereby, in the letting of any public contract, (a) the price quotation of any bid is fixed or
controlled, (b) one or more persons refrains from the submission of a bid, or (c) competition
is in any other manner restrained.

(3) A contract, combination, or conspiracy between two or more persons by any person
refusing to deal with another person, except a refusal to deal by associations, trading boards,
or exchanges when predicated upon a failure to comply with rules of membership.

Sec. 6.

Minnesota Statutes 2020, section 325D.54, is amended to read:

325D.54 SCOPE OF ACT.

Sections 325D.49 to 325D.66 apply to:

(a) any contract, combination, or conspiracy when any part thereof was created, formed,
or entered into in this state; and

(b) any contract, combination, or conspiracy, wherever created, formed, or entered into;
any establishment, maintenance, or use of monopoly or monopsony power; and any attempt
to establish, maintain, or use monopoly or monopsony power; whenever any of the foregoing
affects the trade or commerce of this state.

Sec. 7.

Minnesota Statutes 2020, section 325D.56, subdivision 1, is amended to read:

Subdivision 1.

Civil penalties.

Any person who is found to have violated sections
325D.49 to 325D.66, shall be subject to a civil penalty of not more than $50,000 $100,000
per violation for an individual and up to $1,000,000 per violation for a corporation. Any
person or corporation who fails to comply with a final judgment or decree rendered by a
court of this state issued for a violation of sections 325D.49 to 325D.66, shall be subject to
a civil penalty of not more than $100,000 $250,000.

Sec. 8.

Minnesota Statutes 2020, section 325D.56, subdivision 2, is amended to read:

Subd. 2.

Criminal penalty.

Any person who is found to have willfully committed any
of the acts enumerated in section 325D.53 shall be guilty of a felony and subject to a fine
of not more than $50,000 per violation or imprisonment in the state penitentiary for not
more than seven years, or both.