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There’s nothing wrong with such an arrangement, in and of itself. A flour company might acquire the farms producing wheat, and the stores that sell the flour. For example, a large car company might acquire an auto parts manufacturer, to get pricing benefits. The combined companies then own the entire manufacturing and distribution process. The first, called a vertical monopoly, is when companies in different industries combine to control products and services in a single supply chain. There are two primary types of monopolies. Penalties for violating antitrust laws can include millions of dollars in fines, as well as jail time. The DOJ enforces those actions in the federal courts.
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The FTC is a regulatory body that can bring enforcement actions companies and individuals. The FTC and the Department of Justice (DOJ) are the two main agencies that weigh in about potential mergers, and whether they violate antitrust laws. Who decides when something is a monopoly? Competition is also vital for smaller companies to develop and thrive. Robust competition is a vital component of keeping prices affordable for consumers. When one company controls an entire market or sector, it gets to set prices with little or no competition from other businesses. In the business world, a monopoly is when one company, or group of companies, controls production or sales in an entire market or sector. In the game of Monopoly, you win when you take control of all the properties on the board.