2. Is “monopolization” in violation of the Fair Trade Act?

A2:

Monopolistic businesses may emerge as a result of legal restrictions, manufacturers’ control of needed materials or longer investment in production. For example, businesses related to public health or healthcare, water supply, petrochemical operations that require large amounts of investment in heavy machinery and pipeline installation are likely to become monopolistic. Monopolistic businesses do not necessarily have only a negative influence on the overall economy and consumer interests because of the legal or economic factors behind their formation. Basically, neutrality is adopted in the Fair Trade Act with regard to monopolistic businesses. In other words, such monopolization is not prohibited. However, abuse of market status and impediments to fair competition by monopolistic businesses are forbidden. Hence, “Monopolization” is not necessarily in violation of the Fair Trade Act.