s monopoly a good example of competitive free enterprise

Would Amazon qualify as a monopoly?ĭespite its explosive growth, Amazon falls short of meeting the US Department of Justice‘s monopoly threshold, defined as a market share of greater than 50 percent. By next year, Amazon says it will have around four percent of all retail sales in the US, and just one percent of the $25bn global market. The core principle is to ensure competition and protect consumers against predatory practices – thus preventing monopolies and strengthening the open-market economy. US antitrust law generally focuses on whether a company harms customers. ‘Monopoly’ sounds bad, but is it really?Įconomists say too much economic power held by one corporation stifles innovation, drags down wages, gives consumers fewer choices, and makes an economy less competitive. The implication is that monopolistic companies are able to destroy competitors and dictate prices.

How is ‘monopoly’ defined?Īccording to the Merriam-Webster dictionary, a monopoly is “complete control of the entire supply of goods or of a service in a certain area or market”.

With Amazon workers’ strikes in the US and Germany coinciding with its two-day Amazon Prime event – which began Monday – the company faces doubts about its policies and whether it has monopolistic power. Loyal customers love it, business rivals fear it, and public officials increasingly target it.Īs a global retailer, cloud services provider, and media production house, Amazon is the largest internet company in the world and the second-biggest employer in the United States.

S monopoly a good example of competitive free enterprise