Regulatory capture is a form of government failure that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of specialinterest groups that dominate the industry or sector it is charged with regulating.[1] When regulatory capture occurs the interests of firms or political groups are prioritised over the interests of the public, leading to a net loss to society as a whole. Government agencies suffering regulatory capture are called “captured agencies”.
Source: Regulatory capture – Wikipedia, the free encyclopedia
