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Simple English definitions for legal terms
monopolization
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A quick definition of monopolization:
Monopolization is when one company or person has complete control over a certain market or industry. This means they can set prices and keep other competitors out. It is against the law to try to get a monopoly on purpose, but it is okay if it happens naturally because of having a better product or being smarter in business. Attempting to get a monopoly is also against the law if it involves trying to destroy competition and there is a high chance of success.
A more thorough explanation:
Definition: Monopolization is the act of obtaining a monopoly, which is when a company or individual has complete control over a particular market or industry. In federal antitrust law, monopolization is considered an offense with two elements:
- The possession of monopoly power within the relevant market, which means having the power to set 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 controls all the oil refineries in a particular region and can set prices as high as they want, they are considered to have a monopoly on oil refining in that area. If they actively work to prevent other companies from entering the market, they could be guilty of monopolization.
Attempted monopolization: This is the effort to monopolize any part of interstate or foreign commerce. It consists of three elements:
- A specific intent to control prices or destroy competition in the relevant market.
- Predatory or anticompetitive conduct.
- A "dangerous probability" of success in achieving monopoly in the relevant market.
For example, if a company tries to buy up all the suppliers of a particular raw material, they may be attempting to monopolize that market. If they engage in anticompetitive behavior, such as threatening suppliers who do business with their competitors, they could be guilty of attempted monopolization.