to "leverage" its dominance to restrict competition

Wookie

Senior Member
Korea, Korean
American antitrust law permits a company to hold a monopoly, but it forbids a company from leveraging its dominance to restrict competition.(source)

What does "leverage" mean in the example above?
I can't find the right definition in dictionaries.
 
  • xqby

    Senior Member
    English (U.S.)
    In this context it would mean that the law prevents the company from using its already good position to harm its competitors.

    The implied parallel is a physical lever; as a bar and fulcrum make lifting easier, so too would the company's dominance make restricting competition easier.
     

    panjandrum

    Lapsed Moderator
    English-Ireland (top end)
    This is an interesting discussion of the word.
    Fascinating :)
    I detest the word and have never used it.

    In the context given above (and elsewhere) it has a strong flavour of exploit, or take advantage of that seems to be missing from the discussion in TT's link. I find that surprising. I always thought it was an essential part of the meaning.
     

    Thomas Tompion

    Senior Member
    English - England
    I also thought the word was used to illustrate the way industrial holding companies often control companies by holding small active percentages of the shareholding, and thereby acquire similar small active, and thereby controlling, shareholdings in larger companies, and so on. At the base of the pyramid a small nucleus of ownership can dominate some very large companies, maybe even apparently competing ones, and thereby stifle free competition.

    I don't think it means that here. To dominate or to control seem to be the simpler synonyms, with no prejudice as to how that dominance is maintained.
     
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