BharatNotes Monopoly
nounUsage in a UPSC answer
A regulatory framework that tolerates the abuse of a dominant market position allows incumbent firms to entrench a near-monopoly, stifling innovation and transferring consumer surplus to a privileged few — which is precisely why a robust competition law and an empowered Competition Commission are indispensable safeguards of an inclusive market economy.
Synonyms
Antonyms
Word Family
monopoly (n), monopolise (v), monopolist (n), monopolistic (adj), monopolisation (n), oligopoly (n)
Root
Greek monopōlion; monos = alone, single + pōlein = to sell; via Latin monopōlium
Etymology
From Latin monopōlium, from Greek monopōlion, from monos ("alone, single") + pōlein ("to sell") — literally "the right of exclusive sale."
Memory Hook
Mono- ("one") + -poly (Greek pōlein, "to sell") = "one seller" — one player sells it all, so nobody else gets a turn (as in the board game where you bankrupt every rival).
How This Word Works in UPSC Writing
A market with a single seller and no close substitutes. The point that decides questions on Indian law is that the Competition Act, 2002 does not prohibit dominance or size at all; it prohibits the abuse of a dominant position under Section 4. Dominance is defined as a position of strength in the relevant market in India enabling an enterprise to operate independently of competitive forces or to affect competitors, consumers or the market in its favour. This marks the shift away from the size-and-concentration approach of the MRTP Act, 1969 towards an effects-based regime that asks what a firm did rather than how large it is. Distinguish natural monopoly, where a single network is genuinely the cheapest arrangement, as with transmission or railway track, and which is therefore regulated rather than broken up.
Don’t Confuse It With
Monopoly means one seller. Monopsony means one buyer, which is the more accurate frame for farmers facing a single procurement channel. Oligopoly means few sellers. Dominance is the legal test and can exist well short of a full monopoly. Abuse of dominance is the conduct actually prohibited, since holding a dominant position is lawful and only its abuse is not.
Hindi Meaning
एकाधिकार (ekādhikār); एकाधिकार का दुरुपयोग for abuse of dominance.
Common Questions
- Is monopoly illegal in India?
- No. The Competition Act, 2002 prohibits the abuse of a dominant position under Section 4, not dominance or size in itself.
- What is a natural monopoly?
- A market where a single supplier is the least costly arrangement because of very high fixed network costs, as in electricity transmission or railway track, so it is regulated rather than broken up.
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