MONOPOLY; HOW DOES THE PRACTICE OF DESEAL COMPETITION HARM THE MARKET? PETROBRAS, A MONOPOLY?

Abstract

The present article addresses the importance of free competition in contemporary times, highlighting that it is fundamental to ensuring a fair and balanced market. According to the Federal Constitution of Brazil, free competition is a principle that defines the country as democratic, liberal, and capitalist. The protection of free competition aims to benefit both companies operating in the same sector and consumers. It guarantees low prices, quality products and services, and encourages technological innovation. However, the article also highlights the issue of monopoly, which occurs when there is only one seller for many buyers. In a monopolistic market, the price of a product is determined solely by supply and demand, and the company holding the monopoly has the advantage of not facing competition. This can 

lead to abusive price increases, harming consumers. Monopoly goes against the principle of free competition and is considered an unfair competition practice. To illustrate the topic, the article emphasizes the case of Petrobras, which has faced monopoly accusations and had to deal with competition-related issues in the oil sector. The discussion on the importance of free competition and the challenges faced by monopolies in the market are central points addressed in the paper. This research employs the deductive method, analyzing concrete cases, doctrines, and jurisprudence.