Although monopolies are illegal under U.S. law, there are some companies that still have virtual monopolies in their industries. These companies dominate their respective markets and have no significant competitor. Their revenues in their markets dwarf those of the closest competitors.
1. ESPN
ESPN is the network for all things sports. The company has had challenges from CNN/SI and Fox Sports over the years but easily rebuffed their efforts. ESPN is a monopoly in the sports industry. It is the only 24 hour network devoted to all things sports. The network broadcasts in over 200 countries and is continually expanding. ESPN is so big that the company can buy whatever broadcast rights that it wants. Whatever ESPN wants, ESPN gets. ESPN wanted Monday Night Football and got it. ESPN wanted Sunday Night baseball and got it. ESPN owns the rights to Friday Night NBA Basketball. ESPN controls more than 70% of all college bowl games.
2. Google (GOOG)
If you are searching for something on the Internet, then chances are you googled it. Google has over 65% of the search market. Its closest competitors own just 17% of the market. If you combined Microsoft and Yahoo, they would still control just 34% of the search market. Google’s global market share is often overlooked. According to Fortune magazine, Google owns over 90% of the market in non-mobile search worldwide. Yahoo and Bing combined barely make up over 1%. Google also has a lock on the growing smartphone market. The company owns nearly 96% of the mobile search market. Google doesn’t dominate the search market, the company owns it.
3. Monsanto (MON)
You may have never heard of Monsanto but it doesn’t mean that you have never tried its products. Monsanto has a monopoly in soybean and corn traits. The company controls a remarkable 98 percent of the U.S. soybean market. Monsanto also owns 79 percent of the corn market and 60 percent of the corn and soy germplasm in the United States.
Do you know of any other companies that have a virtual monoploy in their marketplace?
Here’s my take:
1) ESPN: I don’t know enough about this so I won’t comment.
2) Google: Not really a virtual monopoly. I would say they got to where they are for kicking ass, and because everyone else sucks. However, Yahoo, Microsoft, etc… are still doing just fine, and they recently semi-pulled out of the Chinese market.
3) Monsanto. Government enforcement and protection of laws and illegitimate patents that screw over small farmers. Nothing more needs to be said here.
I think the government is investigating Monsanto to see if it is a monopoly.
BIMBO bread company, owns most of the bread companies in hte USA and there headquarters isn’t even in the US, it’s headquartered in Mexico
P.S. I love the pictures.
I’ve played that version of Monopoly, but it really isn’t as good as the one using cash!
LOL. Thanks! I agree Kevin. Nothing beats the original.
I can think of a couple more that are pure monopolies. Here’s some hints:
Largest payer of lobbyist in US. More than tobacco, doctors or AARP
Each makes over $1 billion net profit per year, closer to $ 2+ billion
Treat their customers like dirt
You and I all pay for this.
It is the major US railroads like BNSF and Union Pacific. Interesting how they avoid anti-trust, Sherman Act. This one is supported by our politicians. They continue to fly under the radar. Most people have no idea, except Warren Buffet.
That is true. There are only 4 major railroads in the United States and it has been that way for years.
ESPN: good for them, they earned it.
GOOGLE: good for them, they earned it.
MONSANTO: Did they earn it? Are they an upstanding company? Should they be allowed the monopoly? Is there graft, corruption, government payoffs for their success? Do some reading and you be the judge.
Homer,
The justice department is investigating the company now to see if it is engaging in unfair business practices.
I heard somewhere that Heinz has virtually no competition and they basically own most of the ketchup market. Mmmm…ketchup.
Nice selection! Heinz does have 60 percent of the ketchup market share.
Hello, Microsoft, Intel, and Cisco! All 3 dominate their markets and have cash and no debt OR real competition! Also, Oracle and big MO (and their spin-off PM)…
3 tech companies that could have all made the list.
Greyhound Bus, Microsoft.
I find it interesting that Mark would callout Google which has 60% of the search market and yet leave out Microsoft that has 90% of the operating system market. Google has not attempted to encroach on the operating system market, yet Microsoft has encroached into the search market with Bing and attempted to buy out Yahoo.
Why leave out Microsoft?
Microsoft could have definitely made the list.
Amtrak for passenger train travel. Sure, there are local trains but they won’t take you across the country.
Amtrak is one that I never thought of. Good call!
Amtrak isn’t a monopoly, it is a branch of the federal government. And passenger rail isn’t profitable which is why we no longer have private passenger trains. Passenger rail only works with government subsidies because nobody would pay the full price of the tickets otherwise.
What’s even worse than monopolies are government sanctioned monopolies. Think about these industries that have anti-trust exclusions.
RIAA – Music Industry
AHIP – Health Insurance Companies
MLB – Major League Baseball
Are we getting fair pricing from them?
I believe we should immediately cancel all exemptions from antitrust statutes.
Good point Bret. Some industries should not be getting antitrust exemptions.
Universal Sports is the sports channel I watch for running and biking and triatholons.
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Thanks!