(3)Īt its core, section 2 makes it illegal to acquire or maintain monopoly power through improper means. Section 2 establishes three offenses, commonly termed "monopolization," "attempted monopolization," and "conspiracy to monopolize." (2) Although this report and most of the legal and economic debate focus specifically on the two forms of monopolization-monopoly acquisition and monopoly maintenance-much of the discussion applies to the attempt offense as well. Section 2 of the Sherman Act makes it unlawful for any person to "monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations. Part III identifies key enforcement principles that flow from the U.S. Part II discusses the purpose of section 2 and the important role it plays in U.S. Part I describes the elements of the primary section 2 offenses-monopolization and attempted monopolization. This chapter provides an overview of section 2 and its application to single-firm conduct. Return to Table of Contents Chapter 1 - SINGLE-FIRM CONDUCT AND SECTION 2 ![]() These laws prohibit anti-competitive agreements between businesses and abusing their dominant position in the market.Update: Justice Department Withdraws Report on Antitrust Monopoly Law () Anti-competitive behaviour is prohibited under Chapters I and II of the Competition Act of 1998. The two main legislations that deal with monopolies and monopoly behaviours in the UK are the Competition Act of 1998 and the Enterprise Act of 2002. It is also recognised as the largest internet company in the world, with a market share of over 30% in the UK’s e-commerce market. ![]() It also occupies the markets of cloud service providers, broadcasting, entertainment, and home security. Monopoly Example 5: AmazonĪmazon isn’t only an online retailer. However, the company has recently been in trouble for engaging in unfair and anti-competitive behaviour, as it forces app developers to use its own payment system which is more expensive compared to its competitors. The company holds a dominant position in the distribution of apps in the UK. Monopoly example 4: AppleĪpple is a well-known tech company known for the production of iPhones, MacBooks, and application software. The Facebook company is ahead of all its competitors like Google+, Twitter, etc., and has experienced growth both in the number of users and advertisers and through the acquisition of other companies like WhatsApp and Instagram. Monopoly example 3: Facebookįacebook is one of the oldest social media platforms and it has a huge chunk of the market share. The Google company has left its competitors, Yahoo and Microsoft, behind in terms of innovation and technological advancement. The company has grown vastly over the years and provides web services that are interlinked with each other such as Google Maps, Gmail, Google Drive, etc. Google is the biggest web search engine, and with its algorithm, it controls more than 70% of the market share. It holds a market share of more than 75% and is the market leader and virtual monopolist in the tech space. Microsoft is a computer and software manufacturing company. Most of the recognisable monopolies in the UK are connected to the technology industry and have been termed as the ‘big tech’ monopolies. Real-life examples of monopoly markets in the UK The UK also has a mechanism that investigates and provides ad hoc remedies to certain failures of the market mechanism. The UK may not have an ‘anti-monopoly policy’ like the US, Germany, and the European Economic Community, but it does have a legal framework that establishes which behaviours are acceptable. ![]() It is also relevant to note that in the UK, a firm with over 25% of the market share is defined as a firm with monopoly power. This enables it to exclude all other viable competitors.Ī pure monopoly occurs when a firm is the single seller of a good or service in an industry, which means that it has 100% of the market share.
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