Regulatory capture is a situation in which a regulator advances the interests of the entities it oversees rather than the public interest.
Semantic Classification
Content
- Regulatory capture occurs when the influence of regulated industries shapes regulatory decisions in their favour. It can arise through lobbying, information asymmetry, revolving-door employment or dependence on industry expertise.
- Capture undermines the intended public benefits of regulation and can weaken enforcement. Measures to reduce it include transparency requirements, conflict-of-interest rules and independent oversight.