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Regulatory Authorities – Objectives and main activities

Updated on July 1, 2017

When a market is not competitive, there is a need for regulators. Their role is to balance the interests of various stakeholders. Business organizations can use a monopoly position to create extremely high added value for the benefit of their shareholders, employees etc. Customers need to be protected by limiting these monopoly powers. At the same time, it is necessary for the businesses to price their products at a sufficient margin.

Regulatory bodies are established in countries according to the policy of the government with different types of authorities. Regulatory rules are designed to meet government objectives. Those rules should be understood by the regulator and the regulated industry.

Objectives of regulatory authorities can be classified under the following:

  • To protect customers from monopoly power
  • To promote social and macroeconomic objectives
  • To promote competition

When the players in regulated market have significant market power, the regulator has to focus on price or tariff controls or control on quality of service.

Certain social objectives such as availability and affordability of services to particular groups like disabled or people in rural areas, cannot be achieved from macroeconomic objectives of the government. Therefore regulatory bodies are established to control and monitor these areas.

Actions can be taken by regulatory authorities to assist the development of market segments where there is scope for competition.

Different types of regulatory authorities

  • Bank regulation
  • Consumer protection
  • Cyber-security regulation
  • Financial regulation
  • Food safety and food security
  • Occupational safety and health
  • Public health
  • Pollution
  • Regulation of sport
  • Telecommunication
  • Vehicles
  • Science
  • Wage regulation


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      Marvin 4 years ago

      hello,I just wished to write to say how much I've eoneyjd reading your site. I am part cherokee on my mother's side and my sister is half blackfoot on her father's side. we are half sisters actually as you can see. but anyway I love anything and everything to do with the Native American culture. I also have a friend who is always looking for new info on this as well and I am having a problem with finding information about her birth totem. Her birthday is September 13 If you could help me I'd be grateful as I say she loves Native American stuff as I do. Also I noticed you do crafts. I do too and am looking for a crochet pattern for a native american girl dress to do for a project I'm working on. If you may have any ideas or could help in any way I'd be grateful. Sorry if I've rambled I take medication due to a serious ailment which has left me bedbound. Thanks again for any and all help!!!!