Legal monopoly

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Legal monopoly

A government-regulated firm that is legally entitled to be the only company offering a particular service in a particular area.

Legal Monopoly

A monopoly constituted as such by the state. Legal monopolies are often heavily regulated and may have their rates and charges set by the government, at least within certain limits. The government may run the monopoly directly or contract it out to private companies; it also usually prohibits competition. A government may set up a legal monopoly if it deems it necessary for the citizenry to have a service that the monopoly provides at a reasonable rate. For example, the postal service may be considered a legal monopoly because, even though it has competition for some of its services, it remains the only organization that can legally deliver regular mail. This is because it is considered vital for the mail to run in a timely manner at affordable prices.
References in periodicals archive ?
Cases that are closer to free banking do exist today, as de facto instances of competition within frameworks of supposed de jure monopoly of the national currency.
In Zimbabwe, the central bank has a de jure monopoly on locally issued currency, but hyperinflation drove local currency out of circulation, leaving the country using foreign currency de facto, with the U.
The Postal Service's de jure monopoly of the letter-delivery business, which pays the bulk of its institutional overhead costs, is being eroded by electronic communications that arc faster, more convenient, more reliable, and less expensive than traditional mail.
310), which prescribe a de jure monopoly for the carriage of letter mail.
The transition from de jure monopoly and oligopoly to de jure, if not yet de facto, competition, coupled with a technological "convergence" that treats all communications as indistinguishable streams of 1s and 0s, has led unexpectedly to increased federal regulation.