02/08/1996

Monopoly Power

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NetChoice Staff Written Glossary

Monopoly power means a business has “the power to control prices or exclude competition” from the market through anticompetitive means. Plaintiffs can show monopoly power through direct evidence that the defendant business charged prices significantly higher than what they would be if the relevant market were competitive.

 

More often, though, they rely on indirect evidence that shows a business:

(1) Has a very large share of the relevant market it operates in; and

(2) Is protected by barriers to entry into that market.

Monopoly power requires “something greater” than just mere market power.


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