Monopolies

The issues

Is it permitted to benefit from one's monopoly power in the market place?
May one create a monopoly?
What steps may be taken against monopolies and cartels?

The Jewish Perspective

It is clear that, from the Jewish perspective, the creation of an inelastic monopoly is immoral. The issues to be considered are:

(a) the price of goods or services in the market place;
(b) whether competitors or others are prevented from doing business.

Rabbinical policy has been to ensure, in the case of any essential commodity, that profits are limited and that no monopoly be permitted that allows price abuse in the market place. A local Beth Din may seek limit the potential profit that a seller can obtain where a commodity is essential or where the seller enjoys a monopoly position.

It is generally prohibited to prevent another trader entering the market or to create a price structure to drive a competitor out of business in order to create a monopoly.