A monopoly is when a company has exclusive control over a good or service in a particular market. But monopolies are illegal if they are established or maintained through improper conduct, such as exclusionary or predatory acts. ...

What makes a monopoly illegal?

The main categories of prohibited behavior include exclusive dealing, price discrimination, refusing to supply an essential facility, product tying and predatory pricing. Monopolization is a federal crime under Section 2 of the Sherman Antitrust Act of 1890.

Why are antitrust laws bad?

The problem with antitrust laws is that it prevents the company from growing beyond a certain point. Hence, the company with the maximum resources, which can invest the maximum amount, is prohibited from growing. As a result, technological development stagnates.