“Every industry now has its own Washington-based nonprofit to push its agenda. For wireless it is CTIA, and for cable it is the National Cable & Telecommunications Association. There is even an e-cigarettes group called the Electronic Cigarette Industry Group. The new megacorporations, simply by virtue of their size, can use these organizations to lobby for significant change. And with the political-spending rights given to them by the Supreme Court in the Citizens United decision, these corporations are even more powerful. They are able to steer large sums to preferred candidates. Though they have yet to flex that muscle to the extent that they might, the fear that they could do so is enough to give these companies significant political power with politicians.
These companies are already using their power to push profits higher. While the recovery of the United States from the financial crisis has been slow, corporate profits are at a record high.
In other words, today’s outsize mergers are really about power.”