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Legal monopoly
From Wikipedia, the free encyclopedia
A legal monopoly, statutory monopoly, or de jure monopoly is a monopoly that is protected by law from competition. A statutory monopoly may take the form of a government monopoly where the state owns the particular means of production or government-granted monopoly where a private interest is protected from competition such as being granted exclusive rights to offer a particular service in a specific region while agreeing to have their policies and prices regulated. [1] This type of monopoly is usually contrasted with de facto monopoly which is a broad category for monopolies that are not created by government.
In the United States, AT&T had a legal monopoly on the provision of local exchange service until 1984 when it was vertically divested. AT&T was protected from competition in the local exchange market as a public utility.
The United States Post Office has a legal monopoly on delivery of non-overnight letters.
Telstra has a legal monopoly on telecommunications in Australia.
In many cities bus service enjoys a legal monopoly, however some city governments have legalized competition due to pressure from consumers who desire lower prices and entrepreneurs that would like to provide them.
Professional sports organizations such as Major League Baseball are also seen as legal monopolies.
The Auditing profession is another example of a statutory monopoly within the UK.
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