Discuss when monopoly power is not a violation of Section 2 of the Sherman Act.

What will be an ideal response?


Under Section 2 of the Sherman Act, it is illegal to monopolize or to attempt to monopolize a market. Monopoly power in and of itself is not a violation of Section 2 of the Sherman Act. For a Section 2 violation, the acquisition of monopoly power must have been done in a wrongful manner. For example, monopoly power is not illegal if it is the result of a patent, efficient operation, superior business decisions, or a superior product. It is only illegal if it is obtained in an improper manner. To determine if a defendant has illegally monopolized, three questions must be answered: (1) What is the market? (2) Does the company control the market? and (3) How did the company acquire or maintain its control?

Business

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