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Regulatory capture

REG-yoo-lah-tor-ee KAP-cher

/ˈrɛɡjʊləˌtɔːri ˈkæptʃər/

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Syllable breakdown

regulatorycapture

Dictionary meaning

A form of government failure that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political interests of the industry it is supposed to regulate.

Examples

  • Critics accused the financial regulator of regulatory capture after it repeatedly sided with banks.
  • Regulatory capture can undermine consumer protection and distort competitive markets.

Synonyms: agency capture, industry capture

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