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why is baby formula out of stock one big reason is lack of competition in the baby formula industry its yet another example of how big american corporations have grown so big they no longer compete which means you as a consumer get shafted either with high prices or low quality or both 89 of the countrys baby formula market is dominated by just four firms the largest is abbot which according to a whistleblower complaint failed to fix defective equipment or remedy faulty testing procedures allowing bacteria to enter the system and falsified records and covered up blatant violations yet abbott managed to spend upwards of five billion dollars on stock buybacks money that could have been spent making its factory safe avids negligence and market dominance led to this shortage which is why america needs tougher anti-trust enforcement to restore competition and reign in the power of corporations like abbott