Bases and Criteria for Distinguishing Legitimate from Illegitimate Monopolies

Document Type : Research Paper

Authors

1 PhD Student of Private Law in Shiraz University

2 Associate Professor of Shiraz University

Abstract

Monopoly in the trade of goods involves the possibility of controlling the market for similar goods, which the government is obliged to combat in the context of its economic regulation. However, in some cases and situations, monopoly is not considered illegitimate, but rather should be considered legitimate and supported for some reasons. Because the laws and regulations do not clearly mention this distinction, and even no basis or criteria are provided, this research attempts to identify, discuss, and study the principles and criteria that distinguish legitimate from illegitimate monopoly. The research findings indicate that due to various legal and non-legal factors, most monopolies are considered illegitimate and anti-competitive. However, due to the positive effects of legitimate monopolies on economic growth, investment development, infrastructure enhancement, promotion of research and development, technology, and public welfare, the theory of facilitating and supporting legitimate monopolies should be given serious consideration. Monopoly in the trade of goods involves the possibility of controlling the market for similar goods, which the government is obliged to combat in the context of its economic regulation.

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