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 NHS drugs bill supports international pharmaceutical companies that freeload on publicly-funded research and charge whatever they can get, tweaking drugs to renew legal monopolies.
It alleges that while electric utilities like DTE Electric have legal monopolies to sell electricity to ratepayers, they cannot use that monopoly to gain control over the market for generating capacity.
He then pointed to legal monopolies that control imports as an example of legal corruption that he said was tied to politicians.
The Sports Broadcasting Act of 1961 made professional sports leagues into legal monopolies. Despite ongoing massive cuts nationally in education, public safety, health, housing, and other basic public services, the nation allows affluent team owners to routinely extort taxpayer money from impoverished communities to build opulent overpriced sports palaces.
Third, copyrights, like all private property rights, are legal monopolies. All private property rights can be called legal monopolies because they grant legally enforceable exclusive rights to their owners.
because legal monopolies allowed producers to drive up the price of
(39) This comment will instead focus on the fee-setting structure and legal monopolies of the Mississippi River boat pilots.
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.
This means there would be neither universal service obligation nor a justification for legal monopolies," said Ferber.
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.