Is it illegal to own a monopoly?

[Greg N]

It is illegal to operate a monopoly in general terms, but there's a few things to remember.

1. The police won't stop by and start arresting you or employees. "Illegal" simply means it's not legal, or a violation of law. But laws are enforced in a variety of ways with varying penalties.

2. What constitutes a monopoly depends on the industry the supposed monopoly operates in, in addition to how a monopoly's business share is calculated. (In other words, does the business control 40% of the industry, or 70%? What does "control" mean in terms of business?) The government usually must launch an investigation and a court will determine if a monopoly exists. If the court finds a monopoly does exist, then it can order the business to sell off parts of itself. If the business refuses to cooperate, a judge can have them arrested or other criminal laws may then come into play.

3. Some monopolies are good. People like them. If a monopoly is perceived as being good for the general public, then the government tends to leave them alone. Deciding when to investigate a monopoly and when to break up a monopoly can be a political decision just as easily as it is an economic one.