legal monopoly

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.

Examples

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.

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.

See Also

monopoly (from Greek monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service, in other words a firm that has no competitors in its industry.
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In economics, government monopoly (or public monopoly) is a form of coercive monopoly in which a government agency is the sole provider of a particular good or service and competition is prohibited by law.
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In economics, a government-granted monopoly (also called a "de jure monopoly") is a form of coercive monopoly in a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market
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A de facto monopoly is a monopoly that was not created by government. It is most often used in contrast to de jure monopoly, which is one that is protected from competition by government action.
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Motto
"In God We Trust"   (since 1956)
"E Pluribus Unum"   ("From Many, One"; Latin, traditional)
Anthem
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AT&T Inc.

Public (NYSE:  T )
Founded 1983[1]
Headquarters San Antonio, Texas, USA

Key people Randall L. Stephenson, Chairman/CEO; Richard Lindner, CFO
Industry Telecommunications
Products Wireless, Telephone, Internet, Television
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AT&T Inc.

Public (NYSE:  T )
Founded 1983[1]
Headquarters San Antonio, Texas, USA

Key people Randall L. Stephenson, Chairman/CEO; Richard Lindner, CFO
Industry Telecommunications
Products Wireless, Telephone, Internet, Television
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A public utility (usually just utility in British English) is a company that maintains the infrastructure for a public service (often also providing a service using that infrastructure).
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Sport Baseball
Founded 1876
No. of teams 30
Country(ies)  United States
 Canada

Most recent champion(s) St. Louis Cardinals

TV partner(s) FOX, ESPN, and TBS
Official website MLB.
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In economics, a government-granted monopoly (also called a "de jure monopoly") is a form of coercive monopoly in a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market
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