MONOPOLY

Definitions

A monopoly is a business which provides an individual commodity or service. That

gives it a competitive advantage over any other company that attempts to provide
similar goods. Different Companies become monopolistic through vertical
integration. They can control the entire supply chain. Others use horizontal
integration whereby they buy up competitors until they are left in dominating the
market. Some of these companies, like utilities, enjoy government regulations that
award them a market.

Monopoly can also be defined as a model of the market structure which allows
competitors who provide products which can be differentiated from each other and
therefore, each of the producers has products that have differences from those of
their competitors. These products are not perfect substitutes for the other
competitors. The producers differentiate their product through physical differences,
branding differences, and distribution differences.

A monopoly is a case when an individual company controls so much of the market

share of a certain product or service, and thus it significantly affects the terms on
which others can have access to it. Antitrust laws were aimed at promoting
competition among providers, consumer choice, lower prices, higher quality, and
innovation by providing a level playing field in an open, free market. In the USA the
Sherman Act of 1890 was the first US antitrust law and prohibited contracts and
conspiracies that restrain trade; it still contains the most important provisions in this
area of law. In this essay, Google has been discussed as a monopolistic company.

Google

The Defunct Google-Yahoo Deal. The investigation which was done by Sanford
"Sandy" Litvack, if Yahoo were permitted to use Google to sell ads on its search
pages, the two companies would become collaborators but not competitors and that
the agreement would materially reduce significant rivalry competition between the
two companies. Also, the arrangement likely would have denied consumers the
benefits of competitionlower prices, better service and greater innovation.

Google is the largest provider of Internet search advertising and Internet

search syndication with more than 70 % shares in both markets.

Also, Google has acquired companies like Youtube, DoubleClick and Pyra
Labs. YouTube gains Google more valuable meta-data which can be cross-pollinated
with data from other Google services.

References
I. WAdams and JW Brock, Antitrust Economics on Trial: Dialogue in New Learning
(Princeton 1991).

II. United States Department of Justice Antitrust Division homepage

III. Telco 2.0 Research; The Future Of Telecoms And How To Get Ther