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 ?
The Foundation for Economic Freedom (FEF)called for an end to the legal monopoly of the National Food Authority (NFA) to import rice.
Local economists called on the Duterte administration to remove the legal monopoly of the National Food Authority (NFA) to import rice if it wants to stabilize the price of the staple.
Japan Tobacco retains a legal monopoly over cigarette production in Japan and remains the dominant supplier.
Uruguayan government proposed the legal treatment of Cannabis, passing from prohibition to a legal monopoly of its production and supply by the State.
The "intellectual property" regime enforced under assorted "free trade" agreements enables Western-owned companies to outsource actual production of goods to Third World countries, while maintaining a legal monopoly over disposal of the product.
One kind of legal monopoly, for example, occurs when the government awards a patent to the creators of a new product, giving them exclusive rights to sell the product for a period of time (usually 20 years).
This is a challenge to the Libyan state and the National Oil Company's legal monopoly on oil exports.
In other words, when a legal monopoly of force devises a constitution aimed at constraining its own power (thus attempting to make itself more trustworthy), the crucial problem to address is that of constitutional enforceability.
Government has a legal monopoly on the use of physical force.
12) The ferry boat company has a legal monopoly on boat
The local authorities don''t care as they collect wherever you shop, as they have a legal monopoly on rates collection.
It is also illegal for an operator who holds a legal monopoly for online gambling to conduct an aggressive advertising campaign containing incitement to gamble in contradiction with the public policy of protecting consumers.