The federal government has competition laws in place to protect consumers from predatory business practices. This ensures that the market maintains fair competition because this is an open-market economy. More importantly, the laws keep evolving as new business models emerge. Lawyers apply such laws when faced with unfair business practices like bid-rigging, monopolies, and price fixing. In the absence of the laws, consumers would have a hard time accessing different options in the marketplace. Furthermore, they would have to pay higher prices to access a restricted supply of goods and services.
The Rise of a Market-Dominant Business
According to realtimecampaign.com, monopolies exist in the market with little to no competition. A typical monopoly controls nearly the whole market for a particular product or service. Given this, business owners wouldn't mind owning one because it is very profitable. While companies are constantly jostling to increase their market share, achieving true domination is not easy.
Market Domination Versus Perfect Competition
In perfect competition, different companies should offer a range of prices for a particular product or service, which makes the consumer the price marker. However, monopolies reverse the situation, and the single company offering the goods or services becomes the price marker. Therefore, companies should not earn extremely high profits in the short term but instead, co-exist with others and give consumers a wide range of choices. Check out this blog link to learn more about perfect competition.
Dealing with Unfair Practices
A company can only operate as a monopoly when the government gives it the express powers to do so. In most cases, the difference between owner-created monopolies and those made by the government is purpose. These ease the cost of certain commodities or services offered to the citizens. A firm like Audet & Partners may advise that, if one exists in the economy with another company that owns more than 50% of the market share, one should pursue antitrust law to resolve market domination.
The Changing Landscape of Business Practices
Technology has brought about massive changes in business practice. As a result, the scope of intellectual property has changed over the years, with inventions potentially creating monopolies once they enter the market. Inside Antitrust 2023: Navigating an evolving landscape explores how companies deliberately eliminate their competitors to dominate the market.
Getting Legal Help
Market domination is a complicated case because very few people win. However, the department of justice and the federal trade commission are mandated to listen to these cases and pursue justice where necessary. Further, the DOJ handles cases involving infrastructure such as the internet, transport, and telecommunications. On the other hand, the federal trade commission handles consumer-related cases.
Consumers should enjoy a market where specific types of goods or services are available from different suppliers. The antitrust provisions that companies pursue are set to maximize consumer benefit from the market setup. Further, pursuing such a case is simpler with the right legal guidance from a trusted and experienced lawyer.
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