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It just doesn't make sense. Any try to challenge a natural monopoly is fruitless (at the best) or an economic suicide (at the worst). Why would you forbid companies from doing such stupid move? It's like forbidding inhabatants of skyscrapers from jumping out of windows.

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  • $\begingroup$ Can you list examples of protected industries/markets? $\endgroup$ – london Jan 8 '18 at 12:13
  • $\begingroup$ @london correct me if I'm wrong, but it seems like public utilies companies are protected by the law from competition. $\endgroup$ – user161005 Jan 8 '18 at 12:24
  • $\begingroup$ The flip side of being regulated is that there is often a target rate of return for the company. Allowing competition would presumably mess that up. However, I think you would need specific examples. In my home province, electricity is a monopoly. However, there may not be a “ban on competition,” (I have no idea), but it is extremely unlikely that anyone would be given planning permission. Why would the government give permission to build infrastructure - an environmental mess - for a suicidal business plan? $\endgroup$ – Brian Romanchuk Jan 12 '18 at 1:07

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