​KembaraXtra – Legal Terms – Oligopoly


An oligopoly is a market structure in which control of a market is dominated by a small number of suppliers or businesses.


Because only a few major firms operate within the market, each business may significantly influence prices, supply, and market conditions.


Oligopolies may sometimes lead to the formation of a *cartel, where competing businesses cooperate unlawfully to fix prices or restrict competition.


Unlike a *monopoly, where a single business controls the market entirely, an oligopoly involves several dominant firms.


Competition law authorities often monitor oligopolistic markets carefully because they may reduce consumer choice and weaken fair competition.