Jack Mintz: State-protected monopolies need competition, too

 

 

 

 

 

 

 

DR. JACK MINTZ
President’s Fellow at the School of Public Policy,
University of Calgary

Granting a monopoly status to a firm does not absolve it from the need for competitive pressure. While government‑backed exclusivity can guarantee universal service and stabilize essential infrastructure, it also creates incentives for complacency, price‑inflation and sluggish innovation. By opening these sectors to well‑designed competition – through regulated entry, transparent bidding processes, or “open‑access” mandates – policy makers can preserve the public‑good objectives of the monopoly while re‑introducing the market forces that keep costs low and service quality high.

Recent examples include the telecom sector’s gradual rollout of open‑access fiber, and the push for competitive electricity markets in several provinces to illustrate how modest competition can coexist with public oversight. A hybrid model – state protection paired with structured competition – delivers the best outcomes for consumers, taxpayers, and the broader economy, ensuring that even “protected” firms remain responsive, innovative, and cost‑effective.

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