Monopoly World: Oligarchy and Authoritarianism

 

In today’s global economy, corporate power has become increasingly concentrated, with a handful of companies dominating entire industries. From Apple’s 70% share of the U.S. performance smartphone market to Luxottica’s control of 80% of the eyewear industry, monopolies and oligopolies are pervasive. This consolidation, often unnoticed or ignored, shapes everything from the sunglasses we buy to the hotels we book, as companies like Expedia and Booking Holdings dominate the travel industry. While these monopolies operate quietly, their influence is profound, raising concerns about competition, innovation, and economic fairness.

The roots of monopolies trace back to royal privileges in England, where monarchs granted exclusive trading rights to favored entities. Over time, this evolved into corporate monopolies during the Industrial Revolution, with giants like Standard Oil controlling vast swaths of industries such as oil, sugar, and steel. These monopolies were criticized for price-fixing, lobbying, autocratic control, and suppressing labor rights. In response, the U.S. introduced antitrust laws, starting with the Sherman Antitrust Act of 1890, which sought to break up monopolies and promote competition. Figures like Teddy Roosevelt and Louis Brandeis championed this cause, leading to the breakup of Standard Oil in 1911. However, antitrust enforcement has fluctuated over time, allowing new monopolies to emerge.

Today, big tech companies like Google, Meta (Facebook), and Apple face antitrust lawsuits for allegedly maintaining monopolies through exclusionary practices. For example, Google pays Apple billions to be the default search engine on iPhones, stifling competition. Similarly, Meta’s acquisitions of Instagram and WhatsApp have been criticized as attempts to eliminate potential rivals. While breaking up these companies is one solution, the unique nature of tech monopolies requires innovative regulatory approaches.

The dangers of monopolies extend beyond economics. Historically, concentrated economic power has facilitated authoritarianism, as seen in Nazi Germany and Japan, where cartels supported oppressive regimes. While large corporations can drive efficiency and innovation, unchecked monopolies risk stifling competition, inflating prices, and undermining democracy. Balancing the benefits of economies of scale with the need to prevent abuses of power remains a critical challenge. Learning from history, we must craft policies that promote fair competition while fostering innovation in an increasingly concentrated world.