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You forgot the rest of the quote from your 3rd source: "Courts look at the firm's market share, but typically do not find monopoly power if the firm (or a grou
by labcomputer 5y ago
You forgot the rest of the quote from your 3rd source:
"Courts look at the firm's market share, but typically do not find monopoly power if the firm (or a group of firms acting in concert) has less than 50 percent of the sales of a particular product or service within a certain geographic area. Some courts have required much higher percentages."
Most anti-trust cases have historically been against companies with 90+% market share: Standard Oil, Bell Telephone, Microsoft. I'd love to see an example of a company that was found to have a monopoly with only 60% market share.
- simplestats 5y agoIn fact I think Standard Oil wasn't far above that by the time action was taken. They were also cutting prices and modernizing heavily. To get much beyond that I think you need some special advantage like govt protection. I suspect the patent system, which literally guarantees monopolies to companies in return for a fixed fee, creates a big advantage for the leaders in tech markets. Hence modern leaders last a lot longer with more market share (and way higher margins) than they should.