Monopoly power refers to the ability of a single company or entity to control a significant portion of a market, allowing it to set prices and dictate terms without competition. This power can lead to higher prices and reduced choices for consumers, as the monopolist can operate without the pressure of rival businesses.
Monopoly power can arise from various factors, such as exclusive access to resources, government regulations, or significant technological advantages. When a company like Microsoft or Google holds monopoly power, it can influence market dynamics and potentially stifle innovation by limiting opportunities for smaller competitors.