Could there be a "collective monopoly"?

[dyn2nvu]

Originally posted by: yamadakun
Monopoly is created by government intervention.

How true. Dupont is one example with freon.

 

[patentman]

Originally posted by: iversonyin

Originally posted by: patentman

Originally posted by: iversonyin

Originally posted by: SSSnail

Originally posted by: Whoozyerdaddy

Originally posted by: SSSnail
I don't know where this belongs, but here goes. (MODs, this is not flame baiting and is not aimed at any industry).

I know we have law against monopoly, regardless of what the goods are. Supposedly companies within an industry form an alliance and unanimously raise the price of the goods or services that industry provide, wouldn't that constitute a monopoly?

I know we encourage free enterprise, but at which point do you think there should be some measures control against this sort of "collective monopoly" or co-oppoly, however you want to call it.

Your description is collusion (as everyone else has pointed out) but I'm wondering if you're hinting at an oligopoly?

THANK YOU!

So, can anything be done about oligopoly? As someone has mentioned, they may not be working together, because that would be collusion; but they're not necessarily working against each others either and just conveniently creating a monopoly like environment. Aren't there any control measures?

The only control measure is the supply and demand from the market. If they price the product/service too high, no one will buy.

No. U.S. antitrust laws provide strong corrective action against catrtelization and oligopoly... provided the conduct occurred in or affects the states. Of course, conduct occurring overseas may not be actionable, even if it affects the U.S., due to sovereign immunity ("foreign countries are not subject to U.S. laws)

LAUGH OUT LOUD.

How many companies can you get your phone services from? Cable services? Operating system for your computer?

Wow, you can spell in caps, bravo. But seeing as I have taken several classes on Antitrust, Finance, Corporate, and Business law, I respectfully submit that you don't know what the hell you are talking about. The fact that large companies exist and dominate a market does not necessarily mean that they are anticompetitive and harmful (and thus subject to the antitrust laws). Indeed, if a corporation dominates a market through legal means or because they are the best at what they do, then that is just fine under the Antitrust law.

My comment above, on the other hand, was directed at firms that are colluding to fix prices, which, in many instances, is PER SE illegal under the U.S. antitrust laws. The antitrust laws allow for fines of hundreds of MILLIONS to several BILLION dollars. In some cases, they also can impose jail time on the defendants. If that isn't a severe deterrent, I don't know what is.

And just imagine what your choices for phone, cable, and internet service would be like without Antitrust laws. No don't imagine, go check out the bell monopoly and its effects during the early part of the 20th century.