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legal monopoly wikipedia jump to content main menu main menu move to sidebar hide navigation main page contents current events random article about wikipedia contact us contribute help learn to edit community portal recent changes upload file special pages search search appearance donate create account log in personal tools donate create account log in contents move to sidebar hide top 1 history 2 see also 3 references toggle the table of contents legal monopoly 1 language deutsch edit links article talk english read edit view history tools tools move to sidebar hide actions read edit view history general what links here related changes upload file permanent link page information cite this page get shortened url switch to legacy parser print export download as pdf printable version in other projects wikidata item appearance move to sidebar hide from wikipedia the free encyclopedia monopoly with legal enforcement this article needs more citations please help improve this article by adding citations to reliable sources unsourced material may be challenged and removed find sources legal monopoly news newspapers books scholar jstor september 2016 learn how and when to remove this message this article is part of a series on competition law basic concepts barriers to entry competition effective competition competition law theory economic moat history of competition law market concentration monopoly and oligopoly coercive government granted monopoly market domination natural monopoly state and legal monopoly market power market share analysis monopoly profit price gouging relevant market regulatory economics anti competition collusion dividing territories formation of cartels price fixing list bid rigging tacit collusion occupational licensing and closure cornering the market embrace extend and extinguish exclusive dealing horizontal integration mergers and acquisitions monopolization non compete clause misuse of patents and copyrights predatory pricing dumping pricing policy product bundling and tying raising rivals costs refusal to deal group boycott essential facilities regulatory capture noerr pennington doctrine parker immunity doctrine rent seeking vendor lock in vertical integration measures herfindahl hirschman index lerner index market share profit margin ssnip test mitigation excess profits tax local loop unbundling market share liability merger control competition regulators list of competition regulators international competition network law portal outline lists index category v t e 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 e g patented inventions 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 history edit jurisdictions have at various times imposed legal monopolies on various commodities including salt iron and tobacco the english statute of monopolies of 1623 was an early step in an english movement to convert letters patent from a method of rewarding royal favourites at other than royal expense to a method of encouraging inventors the british east india company 1600 dutch east india company 1602 and similar national trading companies were granted exclusive trade rights by their respective national governments monarchs private interlopers were subject to criminal penalties and the companies fought wars in the 17th century to delineate and defend their monopoly territories legal monopolies on alcohol remain commonplace both as a source of public revenue and as a means of control and the monopolies on opium and cocaine formerly important for revenue were converted or reinstituted during the twentieth century to curb the abuse of controlled substances for example mallinckrodt incorporated is the only legal supplier of cocaine in the united states the regulation of gambling in many places includes an official monopoly national lottery or state lottery where private operation is allowed for example in horse racing off track betting and casinos the authorities may license only one operator the early 19th century gibbons v ogden case weakened the steamboat monopoly that new york had granted producing an exception for interstate commerce however the later slaughter house cases established that a local law creating a legal monopoly did not violate the rights of other merchants in the united states the national recovery act to promote and legally enforce producer cartels was defeated in schechter poultry corp v united states in the middle twentieth century many countries established a monopoly broadcasting agency such as bbc radiodiffusion télévision française or rai most large countries relaxed their law or privatized their state broadcaster late in the century in parts of the united states at t had a legal monopoly on the provision of local telephone service and in long distance until 1984 when local service was vertically divested the divested local companies continued to be protected in lesser degree from competition in the local exchange market as a public utility national postal telegraph and telephone service monopolies were enforced in many countries until the late 20th century telstra for example had a legal monopoly on telecommunications in australia as do the post office departments in many countries the united states postal service has a legal monopoly on delivery of non overnight letters citation needed in many cities bus service enjoys a legal monopoly however some city governments have legalized bus 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 not legally protected from independent league baseball but nonetheless are sometimes called legal monopolies on grounds that they are exempted from us antitrust law professional licensure as of professional engineers in the united states or chartered accountants in the united kingdom does not limit the number of practitioners to one but detractors sometimes call the system a legal monopoly anyway the creation of sirius xm radio by merger left the united states with only one licensed satellite radio broadcasting company however the united states department of justice decided that this was not harmful to competition due to the presence of terrestrial broadcasters see also edit government granted monopoly references edit investorwords com archived 2020 09 21 at the wayback machine definition retrieved from https en wikipedia org w index php title legal_monopoly oldid 1365613553 category monopoly economics hidden categories articles with short description short description is different from wikidata articles needing additional references from september 2016 all articles needing additional references webarchive template wayback links all articles with unsourced statements articles with unsourced statements from august 2020 this page was last edited on 23 july 2026 at 12 50 utc page was rendered with parsoid text is available under the creative commons attribution sharealike 4 0 license additional terms may apply by using this site you agree to the terms of use and privacy policy wikipedia is a registered trademark of the wikimedia foundation inc a non profit organization privacy policy about wikipedia disclaimers contact wikipedia legal safety contacts code of conduct developers statistics cookie statement mobile view search search toggle the table of contents legal monopoly 1 language add topic