![]() ![]() In 1911, the US Supreme Court found Standard Oil guilty of monopolizing the petroleum industry through multiple anti-competitive and abusive actions. Standard Oil was accused of using aggressive pricing to threaten other businesses and form a monopoly. The company streamlined production and logistics and reduced prices, undercutting competitors. Although the company had tons of competitors, it managed to gain nearly 90% of the US market.īy 1910, it had become the world’s largest oil refiner. Gained almost 90% of the oil refining market in the USĮstablished in 1870 by American industrialist John Davison Rockefeller and Henry Flagler, Standard Oil was an oil-refining, transporting, and marketing company. Below, you will find some of the most common examples of monopoly in various industries. Such market structures can better be explained using examples. Generally, the United States law doesn’t stop/punish an organization for being the sole provider of products and services, but it can punish any company for using biased or unfair practices to maintain its position. Sometimes, this leads to higher consumer costs and corrupt behavior. However, when an organization becomes too dominant (leaving almost no room for competition), its quality and services can suffer. ![]() Monopolies often help a region or country develop its infrastructure rapidly, effectively, and efficiently.
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