| Many people believe that monopolies are evil, as | | | | the US Congress using as one of the reasons |
| they inhibit competition, although this is really a | | | | their work in anti-trust monitoring. Complete BS, |
| fallacy in many regards. How so you ask? Well let | | | | but here is what the FTC stated in that official |
| me describe a term called; "Earned Monopoly" | | | | report: |
| where the company grows large thru consumer | | | | "During FY 2005, the FTC had nine antitrust cases |
| choice to be the biggest and possibly the only real | | | | pending at some stage of administrative litigation. |
| player in their industry sector. In this case the | | | | These antitrust cases involved a variety of |
| company has won the market share thru direct | | | | consumer issues including physician and dental |
| competition and has been voted for by the | | | | services, pharmaceuticals, hospital services, |
| consumer. | | | | transportation of household goods, computer |
| In this case the earned monopoly is not evil but a | | | | software and hardware, and gasoline. Besides |
| testament to free markets and capitalism. If a | | | | bringing the benefits of increased competition, |
| company grows large and then controls a market, | | | | these cases also provided opportunities for the |
| then attacks competition thru dumping practices | | | | FTC and the courts to offer detailed analysis and |
| and blocking the little guy from markets then that | | | | guidance on key policy questions for businesses, |
| is a problematic situation, yet we must remember | | | | the bar, and the public. In January 2005, the |
| that if that occurs and the monopoly gets too big | | | | Commission issued its first merger decision in |
| for its britches then a new company will come in | | | | administrative adjudication since 1995. The FTC |
| and take market share back. Thus the free | | | | charged that a company had illegally acquired its |
| market provides a mechanism to level the playing | | | | closest competitor and that the acquisition |
| field without government or regulatory | | | | resulted in either a monopoly or a dominant firm |
| intervention, therefore the FTC Federal Trade | | | | in four U. S. markets. The Commission s order |
| Commission is not needed nor is their advancing | | | | requires the company to create two new divisions |
| of administrative litigation. | | | | that could compete independently in the relevant |
| Additionally generally, all real monopolies are | | | | markets, and to divest one of those divisions |
| caused by government in the first place; public | | | | within six months. In addition, four consumer |
| utilities for instance, railroads, etc. The FTC never | | | | protection cases also were in administrative |
| the less purports that they must have increased | | | | litigation in FY 2005. |
| funding for their agency in FY 2007 in a report to | | | | |