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In economics, a government-granted monopoly (also called a "de jure monopoly" or "regulated monopoly") is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement.
Natural monopoly: This type of monopoly occurs when a firm can efficiently supply the entire market due to economies of scale, where larger production leads to lower costs. For example, in some cases, utilities (such as those providing electricity or water) may operate as natural monopolies due to high infrastructure and distribution costs.
It is also known as antitrust law (or just antitrust [4]), anti-monopoly law, [1] and trade practices law; the act of pushing for antitrust measures or attacking monopolistic companies (known as trusts) is commonly known as trust busting. [5] The history of competition law reaches back to the Roman Empire.
As is too often the case, it seems like the only monopolies that earn government approval are the ones it helps create. The post With U.S. Steel Decision, Biden Turned His Back on Opposing ...
The final barrier is restrictive government policy. Importantly, this barrier can either aid or hinder an entrant and even effect the other barriers. Restrictive government policies can block entrance through licensing requirements and restrictions on foreign investments. A clear example these may include the alcohol and taxi industries.
One of the government's few anti-monopoly victories was United States v. AT&T, which led to the breakup of Bell Telephone and its monopoly on U.S. telephone service in 1982. [30] The general "trimming back" of antitrust law in the face of economic analysis also resulted in more permissive standards for mergers. [30]
11. Thurn and Taxis Mail. The private company operated postal service back in the 1800s and enjoyed a monopoly on postal services. The company's dominance came to an end after Prussian victory ...
The setting of price controls in the form of price-cap regulation or rate-of-return regulation, especially for natural monopolies. Where there is non-compliance, this can result in: Financial penalties; or; A de-licensing process through which an organization or person, if judged to be operating unsafely, is ordered to stop or suffer a penalty.