Understanding Monopolies and Trusts
The United States is built on a free market system, which allows anyone to start a business to provide whatever goods or services a person desires. The point of the free market is to encourage competition, allowing consumers to choose where they get their goods and services. This competition is supposed to help keep prices low.
Sometimes, however, businesses take this ability out of consumers’ hands by forming monopolies or trusts. If you are part of a group of consumers that has been defrauded by a monopolistic business or a trust, you can fight back. Contact the antitrust litigation lawyers of Feazell & Tighe, LLP, today at 877-508-0588 to discuss your case.
Distinguishing Between Monopolies and Trusts
Though they create similar circumstances, monopolies and trusts are not the same. A monopoly implies that one business controls a certain sector of the market while a trust implies that a group of businesses band together to control a certain sector of the market.
A monopoly typically has the following characteristics:
- Single business
- Provides necessary good or service
- No substantial competitors
- Sets the market prices
A trust usually has the following characteristics:
- Several businesses
- Provide necessary goods or services
- Work together to eliminate competition
- Set the market prices
The main difference between monopolies and trusts is the number of businesses involved. Regardless, both are illegal.
Contact Us
Monopolies and trusts should be broken up to ensure competition so that consumers can seek the lowest prices or best services for their needs. If you are part of a group that has been defrauded by a monopoly or trust, contact the experienced antitrust litigation attorneys of Feazell & Tighe, LLP, at 877-508-0588 today.
