Governments use various tools to regulate monopolies and promote competition:
Antitrust Laws: These laws prevent anti-competitive practices and promote fair competition. Examples include the Sherman Antitrust Act in the United States. Price Controls: In some cases, governments may regulate the prices that monopolies can charge, especially in essential services like utilities. Breaking Up Monopolies: Governments can dismantle monopolies by dividing them into smaller, independent entities. This was famously done with AT&T in the 1980s. Encouraging Competition: Policies that lower barriers to entry and promote innovation can help prevent the formation of monopolies.