Ldmglobal1161
Uploaded on Jun 18, 2025
Category
Business
This presentation explores how market power and monopolies are central to antitrust analysis. It defines market power as the ability of a firm to control prices without losing customers, and a monopoly as a market dominated by a single firm. The presentation highlights how antitrust laws evaluate business practices—such as predatory pricing and exclusive dealing—to prevent anti-competitive behavior. Through case studies like U.S. v. Microsoft, it illustrates regulatory scrutiny of dominant firms. The presentation concludes with the importance of regulatory compliance in preserving market competition and protecting consumer interests.
Category
Business
The Role of Market Power and Monopoly in Antitrust Analysis
The Role of Market Power and
Monopoly in Antitrust Analysis
Understanding Competitive Practices and Regulatory
Oversight
Presented by: LDM Global
Understanding Market Power and Monopoly
Market Power refers to a company's ability to raise prices above competitive levels
without losing customers.
A Monopoly exists when a single firm dominates a market with no close substitutes.
Both are central to antitrust evaluations, as they can hinder competition and harm
consumers.
Example: Utility companies often have monopolies due to infrastructure constraints.
Antitrust Analysis and Market Dynamics
Antitrust laws assess whether market power is used to limit competition.
Key metrics: market share, entry barriers, price elasticity.
Practices under scrutiny:
○ Predatory pricing
○ Exclusive dealing
○ Tying arrangements
Implications and Regulatory Actions
Antitrust enforcement protects consumer choice and innovation.
Agencies like the FTC and DOJ assess mergers and acquisitions for anti-competitive
risks.
Companies should adopt compliance strategies to avoid legal risks.
Conclusion: Understanding market power and monopoly is key to staying within
antitrust boundaries.
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