When a single company controls a market so completely that real competition disappears.
A monopoly exists when one company controls a market so completely that it faces little or no meaningful competition, giving it the power to set prices, limit supply, or dictate terms with far less pressure to keep customers happy than a company operating in a competitive market would face. True monopolies are rare and often illegal outright, but a company can hold monopoly-like power in a narrower market without technically controlling an entire industry. Regulators watch for this kind of dominance closely, since it's the exact scenario antitrust law is designed to prevent.
Part of the Open Bell Glossary — plain-English explanations of the terms that come up on the show. Browse every term.