The following items constitute monopolization:
Market Power: For applying rules for the conduct of the single firms, a literal monopoly is not required by the Court; the term is applied when the long-lasting market power is explained. A â€˜monopolistâ€™ is that kind of firm that uses long-lasting market power. A firmâ€™s market share is governed by the Court but could not declare it a monopoly unless it has more than 50% of the total sales of some particular service or product within some fixed area. Different Courts require different percentages.
Exclusionary Conduct: To judge the behavior of the supposed monopolist, everyone needs an in-depth knowledge of the market and analyze the ways to attain the monopoly. It is legal to obtain a monopoly by innovation, business awareness, and best products. However, if some predatory acts are included to achieve the same result, it raises antitrust concerns.
Business Justification: The monopolist may carry an original business justification that shows the behavior that stops other firms from prospering in the marketplace. A monopolist can compete in such a way that helps the consumers by giving them greater efficiency.
Comparing Monopoly and Monopolization
In antitrust law, monopoly and monopolization are related concepts but not synonymous. Monopoly can be defined shortly as the power to eliminate competition and control prices. The importance of eliminating competition or managing prices lies in the harmful effect of the decrease in competition and the consumers who usually got benefitted if the large competitive markets existed. The antitrust laws were established not for protecting the competitors but for protecting competition. The antitrust law in the United States does not consist of any idea of “no fault” monopolization. After the Sherman Act was passed in 1890, the courts argued that the market share size must be counted while judging a market participant to label them accurately as a “monopolist”. Monopolization cannot be found if someone finds a monopoly power; if someone finds a monopoly power, it does not mean that finding of a monopolization will be equated to that. Monopoly, which otherwise means size, and unlawful monopolization do not equate. If a merger is only based on its size, many people complain about it, though it is not true. As the merged parties are not potential competitors or competitors, large mergers are not challenged, so the merger does not violate the antitrust law. While in the case of a small merger, where there may be two firms are involved, challenges may occur.
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