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The Agreement To Create Monopoly Is

Under this heading, two types of agreements are processed. If companies have large market shares, consumers risk paying higher prices and obtaining products of lower quality than competitive markets. However, the existence of a very high market share does not always mean that consumers pay excessive prices, since the threat posed by new entrants can slow down the price increases of a company with a large market share. Not only does competition law make mere monopoly illegal, but it also abuses the power that a monopoly can give, for example through exclusionary practices. By law, any agreement that prevents a person from carrying on any profession, trade or legal activity of any kind is void to that extent. No one may acquire, directly or indirectly, all or part of the shares or other shares. [89] Companies that have patents on their products that prevent competition from developing the same product in a given sector may enjoy a natural monopoly. Patents allow the company to make a profit for several years, without fear of competition, to cover investments, high costs of start-ups and research and development (R&D) of the company. Pharmaceutical companies are often granted patents and a natural monopoly to promote innovation and research. Example: A, a father of a girl promised to give a certain amount of money to B, a father of a minor boy and B agreed to marry his minor son with A`s daughter. In this respect, the agreement is null and void, as it is a matter of public policy.

The difference between maintenance agreements and champerty agreements lies in their purpose.