New Article: Christopher R. Leslie, Food Deserts, Racism, and Antitrust Law, 110(6) Cal. L. Rev. 1717 (2022). Abstract below:
Millions of Americans live in food deserts, a term that describes urban neighborhoods and rural regions where residents do not have access to healthy, affordable food. Food deserts are neither natural nor inevitable. Many food deserts result from the deliberate choices of supermarkets to maximize their profits by shifting resources to suburban consumers while affirmatively blocking other grocery stores from operating in food deserts. This Article examines the history, business logic, and illegality of these corporate decisions.
In many ways, food deserts are a tale of two covenants: racial covenants and anticompetitive covenants. During the era of white flight, racial covenants and their lingering effects prevented Black families from moving to the suburbs. Supermarkets followed white families out to the new communities. Not content to simply expand into new locations in the suburbs, many supermarket chains abandoned their inner-city stores. When they sold these locations, many supermarkets imposed scorched-earth covenants in their deeds of sale that forbade any future owner from operating or allowing a supermarket at that location. These anticompetitive covenants prevented any other grocery store from serving the families left behind. This one-two punch of hemming nonwhite families into certain neighborhoods and then preventing supermarkets from existing in these same neighborhoods devastated the physical health of racial minorities and the economic health of their communities.
This Article explains why food deserts are an antitrust problem. Many food deserts were caused, in part, by anticompetitive covenants and other market failures. Despite this, courts fail to appreciate the antitrust significance of food deserts because judges define markets too broadly based on the attributes of an “average” consumer: wealth and mobility. Consequently, the residents of food deserts are effectively denied the protection of antitrust law.
Courts should treat food deserts as relevant geographic markets for antitrust purposes. Doing so is consistent with antitrust principles and would enable valid antitrust claims to proceed and to invalidate the anticompetitive covenants that create and perpetuate food deserts. Antitrust officials can also leverage the power that they possess during the merger review process to negotiate enforceable promises by supermarket chains to waive enforcement of their restrictive covenants. Applied correctly, antitrust law is a valuable weapon in a larger arsenal of policy prescriptions to remedy the problem of hunger and poor nutrition in America’s food deserts.