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by MCRed 3996 days ago
Telecom-- a government granted tri-opoly. The FCC limits the number of organizations who can license spectrum in a given metro area.

Airlines-- government regulated, airports are local government monopolies and they limit competition.

Microsoft- Not a monopoly in any line of business

I have been waiting for a long time for someone to come up with an example of an actual natural monopoly that exercises monopoly pricing power. In every case so far, either they had competition, or government is the one that was limiting competition in the first place, usually by regulation.

3 comments

Your requirements are absurd - Every business will be subject to some sort of government regulation that could limit barrier to entry. That's why your conclusions are outlandish- Microsoft was literally deemed to violate antitrust law in federal court; there are plenty of obvious historical examples (United Fruit, Standard Oil, US Steel); Pharmaceutical companies consistently exhibit price gouging in medical monopolies, etc. Furthermore, oligarchical monopolies, like the telecoms, are not somehow exempt- they operate, lobby, coerce, and consolidate power together, despite being 3 separate companies. Utilities are generally natural monopolies, not government created- the major barrier is the huge costs on upfront infrastructure, which dwarf any regulatory costs. Most importantly though, you failed to grasp the fundamental concept, that a government granted monopoly is not somehow uncapitalistic: it's hypercapitalism, the end goal of the system itself.
The seems like a life imitates art/art imitates life question. It seems impossible for a completely unbiased government free from favored interests. Every sufficiently large corporation exerts influence or receives favors as a localized tax source or employer of voters.
Do you know why regulations in the US exist? Because of the robber barons of the gilded age.