Such monopolies are called government-initiated monopolies, which can be of two types – government monopolies and government-granted or government-created monopolies. However, sometimes, a monopoly can be a valuable tool for the government in providing cost-effective services to the general population. Since this reduces the number of choices available to consumers, and is unfair to the competitors of the enterprise, this term is generally used in a negative sense in economics. In 1998, software giant Microsoft was sued by the US Federal Government, along with 20 state governments, for becoming a monopoly.Ī monopoly is an enterprise that can claim the complete ownership of a particular service or product in the market. This OpinionFront post helps you understand better what a government monopoly actually is, with the help of a few examples. A government monopoly has the advantage of offering essential services at a low cost.
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