As far as I understand, antitrust laws prevent a monopoly. What I don’t understand is why is there a law against this? If your product is successful enough that everyone wants it/needs it, why is that a bad thing?
I searched for an answer to this, but the questions are more specific. In this question, since I don’t know about the concept, I’d like to know why such law is a thing.
In: Economics
Companies want one thing: profit. They will do anything to get this. The consumer benefits most from this when companies improve their services and lower costs in an effort to gain customers and profit.
Sometimes, however, companies act together to screw over customers and profit together. For example, companies might collectively agree to not lower their prices. Other times, companies will grow so large that there is no competition. If this occurs, the company has no incentive to not screw over customers. While companies can achieve this by being really good at their service, it’s more likely that they used some kind of business practice that doesn’t really benefit the consumer in order to eliminate their competition.
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