Legal Definitions - duopoly

A duopoly refers to a market structure where only two companies or entities are the primary sellers or providers of a particular product or service. In such a market, these two dominant players hold significant control over supply, pricing, and competition, often making it challenging for new entrants to establish a foothold.

Here are some examples to illustrate the concept of a duopoly:

• Example 1: Mobile Phone Operating Systems

  Consider the global market for smartphone operating systems. The vast majority of smartphones run on either Apple's iOS or Google's Android. While there might be niche or defunct alternatives, these two companies collectively provide the operating system for nearly every smartphone sold worldwide.

  This illustrates a duopoly because consumers and device manufacturers primarily have only two viable choices for a smartphone's core software platform, giving Apple and Google immense influence over the mobile technology ecosystem.

• Example 2: Major Credit Card Networks

  In many regions, the market for credit card processing networks is largely dominated by two major players: Visa and Mastercard. While there are other card networks like American Express or Discover, Visa and Mastercard account for the overwhelming majority of credit and debit card transactions processed globally.

  This demonstrates a duopoly because most banks and financial institutions partner with either Visa or Mastercard to issue cards, and most merchants accept payments through these two networks, making them the two primary facilitators of electronic payments.

• Example 3: Commercial Aircraft Manufacturing

  The market for large commercial passenger aircraft is predominantly controlled by two manufacturers: Boeing and Airbus. These two companies design, produce, and sell the vast majority of wide-body and narrow-body jets used by airlines around the world.

  This is a clear example of a duopoly because airlines looking to purchase new large passenger planes essentially choose between models offered by either Boeing or Airbus, reflecting the significant barriers to entry and the immense scale required to compete in this industry.