What are monopolies and mergers?

Monopolies occur when a single company dominates a market, controlling prices and supply without competition, which can lead to reduced choices for consumers and potential exploitation. Mergers involve the combination of two or more companies into one, often aiming to increase market share, reduce competition, or achieve economies of scale. While mergers can lead to efficiencies and innovation, they can also raise concerns about creating monopolistic structures if they significantly reduce competition in the market. Regulatory bodies often scrutinize mergers to prevent anti-competitive outcomes.