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Simple English definitions for legal terms
attempted monopolization
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A quick definition of attempted monopolization:
Attempted monopolization is when a company tries really hard to be the only one selling a certain product or service. This is against the law because it can hurt other businesses and make prices go up. To be guilty of attempted monopolization, a company must have a plan to control prices or get rid of competition, and they must have a good chance of actually becoming a monopoly.
A more thorough explanation:
Definition: Attempted monopolization is the act of trying to gain control over a particular market or industry with the intention of fixing prices and eliminating competition. It involves engaging in predatory or anticompetitive behavior that poses a "dangerous probability" of achieving a monopoly in the relevant market.
In federal antitrust law, monopolization is considered an offense that requires two elements:
- The possession of monopoly power within the relevant market, which means having the ability to control prices and exclude competitors.
- The willful acquisition or maintenance of that power, as opposed to growing or developing as a result of a superior product, business acumen, or historical accident.
For example, if a company tries to buy out all of its competitors in a particular industry with the intention of controlling the market and raising prices, it could be accused of attempted monopolization. Similarly, if a company engages in predatory pricing or other anticompetitive practices to drive its competitors out of business, it could also be accused of attempted monopolization.
Overall, attempted monopolization is a serious offense that can harm consumers by limiting their choices and driving up prices. It is important for regulators to monitor markets and take action against companies that engage in anticompetitive behavior.