Incumbents love regulation, because they are much better positioned to comply with it than any upstarts or new challengers. So, when a company like Anthropic gets a decent marketshare, their priority shifts to lobbying for regulation to limit competition.
That's what I meant, but as the root comment implied, regulation is needed, so the solution is not laissez-faire.
These companies are not going to regulate themselves. Capitalism is going to drive them to relentlessly compete for growth at all costs, a lot of which would be imposed on society. At least they are honest that regulation is needed, unlike Big Tobacco.
As someone adjacent to the wine biz, few things worth noting:
- Their data source is a major wine importer. The economic realities of the majors versus the smaller, boutique importers, or even the larger independent ones, are very different, because of their market position, reach, their clientele, the type (mass-market) product they carry, etc... in addition to the simple financials of having padding and ability to plan long-term. Anecdotally, most of the smaller-to-mid-size importers I know have actually cut their margins, and are hanging on by a thread. For anyone smaller than the two or three very biggest players, the tariffs have been a drag on business at both ends, and for some have been existential. It's driving consolidation as well, which is never good for consumers. Imagine doing a study on the software industry and only talking to Microsoft.
- In the US we have the three tier system (producer -> importer -> distributor -> retailer) and each of those take a cut, obviously, resulting in higher costs. So those tariffs compound at each layer. There are a few exceptions where you can be a "direct import" retailer (e.g. K&L in CA) but these are a small piece of the pie. Don't even get me started on the costs of shipping, the byzantine legal compliance, etc.
- As for the 14% thing; I'm skeptical of their insinuation of causality. Relevant to this study, 2018, 2019 were exceptionally hot growing seasons in most of europe, a trend which has unfortunately continued, which naturally lead to higher ABV, even as critical trends move in the opposite direction.
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