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 ?
because legal monopolies allowed producers to drive up the price of
Of course, China does have huge firms, but they are inefficient state-owned behemoths that owe their size and profitability to their legal monopolies and to government subsidies.
If intellectual property law is justified by appeals to the promotion of free competition, then the dilemma of the law is to balance the market failures that might occur when investment in innovation is deterred by unbridled free-riding versus the deterrence of innovation investment among second-comers if ill-conceived legal monopolies enable rent-seeking oligopolists to control and stifle follow-on innovation.
Love: By eliminating legal monopolies and prompting competition for products.
Too bad, critics say, he didn't realize that inherent regulatory inefficiencies and the legal monopolies of the companies themselves were to blame for his lack of a lift, not just a cranky cabbie.
Please note: I am talking throughout this article about perfectly legal monopolies, such as patents, brands and trade secrets; I am not talking about illegal, collusive monopolies or price-fixing.
According to the industry view, patents create temporary legal monopolies to encourage useful advances in knowledge; they have no moral or theological implications.
Until now, electric utilities have been legal monopolies.
Their surveillance could be made a bit easier if the PUC before the end of the year can summon the consensus and courage to put strong enough rules in place so the three giant utilities can't take unfair advantage of their 100-year histories as unchallenged, legal monopolies.
prohibition on Internet gambling could lead to the creation of legal monopolies for those entities exempted under federal legislation.
They lack the usual signs of respectability, such as big buildings and established reputations, and they cannot count on legal monopolies to rope in customers.
legal monopolies or dominant market power, extracting monopoly