Under federal and some state laws, private parties (businesses or consumers) who were harmed by anticompetitive conduct can bring antitrust lawsuits seeking damages (in some instance treble damages) and injunctive relief. Tying Contract: selling a product or service on the condition that the buyer agrees to also buy a different product or serviceĪnticompetitive monopolization violates federal antitrust law, notably the Sherman Antitrust Act, and are prohibited by state antitrust law, including the Cartwright Act in California.A monopoly is a market with only one seller. Exclusive Dealings: requiring a buyer or seller to do buy or sell all or most of a certain product from a single supplier This is the most extreme, but not the most common, example of market power.However, one firm can dominate the supply of a good or a group of goods. Price Discrimination: selling similar goods to buyers at different prices It is important to note that in real life, complete monopoly is extremely rare.Here are some examples of how illegal monopolies unfairly exploit their market power: How Illegal Monopolies Exploit the Market This is known as anticompetitive monopolization. Competitors may be at a legitimate disadvantage if their product or service is inferior to the monopolist’s.īut monopolies are illegal if they are established or maintained through improper conduct, such as exclusionary or predatory acts. Antitrust law doesn’t penalize successful companies just for being successful. For example, businesses might legally corner their market if they produce a superior product or are well managed. A monopoly is when a company has exclusive control over a good or service in a particular market.
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