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LSDefine

Simple English definitions for legal terms

monopoly leveraging

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A quick definition of monopoly leveraging:

Monopoly leveraging is when a company with a lot of power in one market uses that power to gain an advantage in another market. This is against the law because it can hurt competition and make it harder for other companies to succeed.

A more thorough explanation:

Monopoly leveraging is a legal concept that states that a company with a monopoly in one market cannot use its power to gain an unfair advantage in another market. This is considered a violation of antitrust laws.

For example, let's say that a company has a monopoly on a particular type of software. They cannot use their power in that market to force customers to also use their hardware, which would give them an unfair advantage in the hardware market.

Another example would be if a company with a monopoly on a certain type of product were to buy up all the suppliers of a key component, making it impossible for competitors to produce the same product. This would be considered an abuse of their monopoly power.

These examples illustrate how a company with a monopoly can use their power to unfairly dominate other markets, which is why monopoly leveraging is illegal.

monopolization | monopoly power

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