7 near-monopolies that are perfectly legal in the United States

Get the Full StoryREUTERS Jessica RinaldiTrue monopolies were outlawed in 1890 in the U.S. after Congress passed the Sherman Antitrust Act. This law was designed to protect consumers from large companies that sought to use their dominant market position to engage in anticompetitive business practices. The bill also gave the federal government the power to step in and take action when necessary.

While this law is still in place today, that hasn't prevented a handful of very powerful companies from gaining a huge amount of market share in their industries. Below we'll take a closer look at seven companies that could easily be considered near-monopolies today.Anheuser-Busch InBev NV

REUTERS Jessica Rinaldi

Anheuser-Busch InBev has long enjoyed top-dog status in the U.S. thanks to its ownership of a number of best-selling beer brands such as Budweiser, Michelob Ultra, Beck's, Stella Artois, Bass, and more. However, the company's market dominance was brought to a whole new level last year after it spent over 100 billion to swallow SABMiller -- the industry's second-largest player -- whole. This megamerger was so large that AB InBev is now estimated to control about 46 of global beer profits and produce about 27 of the world's total beer supply.

On the bright side for consumers , getting this deal past regulators wasn't easy. The two companies were forced to sell off some brands to appease competition concerns. AB InBev is also prohibited from using its power to restrict the distribution of beer from rivals. However, even with these concessions the company still commands a dominant market share in the U.S. of about 45 .

Looking ahead, AB InBev growth plans call for it to continue to increase its presence in international markets and to realize the synergies of its massive acquisition. With so many top-selling brands under its wing, AB InBev looks well-positioned to retain its near-monopoly status.

Illumina

REUTERS Larry Downing

The cost to sequence an entire human genome has plummeted over the last decade. One company that deserves high praise for driving those costs lower is Illumina. Throughout its history, Illumina has consistently brought to market new products that have significantly driven down the cost curve of genetic testing by an order of magnitude. A good example of this is the company's HiSeq machines line. These products were introduced years ago and enable researchers to sequence an entire genome for as little as 1,000. That's a price point that rivals have had trouble matching, which is a big reason why Illumina's market share regularly hovers around 90 .

Illumina looks poised to continue its dominance of the genetic-testing market thanks to the recent launch of its NovaSeq Series. The company believes that this new product line will one day enable researchers to sequence a genome for as little as 100. That could be a low enough price to attract interest from insurers and consumers alike, and should go a long way toward helping Illumina to maintain its industry-leading position.

SiriusXM Holdings

Cindy Ord Getty Images for SiriusXM

If you subscribe to a satellite radio service then you are likely aware that you basically only have one choice -- Sirius XM Holdings. The company's stranglehold on the market came about when XM and Sirius merged, in 2008, to form the juggernaut that we know today. This move was truly a match made in heaven as it costs a pretty penny to launch and maintain satellites in orbit. In addition, signing content deals with Howard Stern and the NFL isn't exactly cheap. Operating as two stand-alone businesses made little economic sense, so joining forces seemed like a win-win proposition for both companies.

However, while Sirius XM holds a monopoly-like position in satellite radio, it would be laughable to say that the company is free of competition. Consumers can choose to listen to their local radio stations, stream music through services like Pandora or Spotify, or even download podcasts whenever they want. This variety means that the battle over a consumer's listening time remains quite fierce.

See the rest of the story at Business Insider

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