How does the government deal with firms that abuse their market power?

The government deals with firms that abuse their market power by withdrawing the firm's operation license. The government comes up with price capping, which involves setting the maximum limit at which a firm can increase the price of commodities. Firms that go against the fixed maximum price increase are forced to stop their operation because their licenses are withdrawn, and they cannot operate without permission. A license or permit is a business document given to a firm by the government to show that it is legally allowed to work within the country. Price capping is implemented to prevent consumers from overspending on goods or services that are sold by firms with high market power.