Competition law Essay

A situation in which a virtuoso company or group owns all or nearly all of the market for a given over type of product or service. By definition, monopoly is characterized by an absence of competition, which a great deal results in high bells and modest products.According to a strict academic definition, a monopoly is a market containing a single firm. In such instances where a single firm holds monopoly power, the company will typically be forced to impoverish its assets. Antimonopoly regulation protects free markets from being dominated by a single entity.Explanation MonopolyMonopoly is the native case in capitalism. Most view that, with few exceptions, the system just doesnt work when in that respect is only one provider of a good or service because there is no inducing to improve it to meet the demands of consumers. Governments attempt to prevent monopolies from arising through the use of antitrust laws.Of course, there are grey-headed areas take for example the granti ng of patents on new inventions. These give, in effect, a monopoly on a product for a set period of time. The reasoning behind patents is to give innovators some time to recoup what are often large research and development costs. In theory, they are a way of using monopolies to promote innovation. another(prenominal) example are public monopolies set up by governments to provide essential services. Some believe that utilities should offer public goods and services such as water and electricity at a price that is affordable to everyone.