What is a regulated activity

Among the types of activities there are those whose significance you do not immediately understand - sometimes you have to find additional information and think again. So, for example, a regulated type of activity means a monopoly … But what kind of monopoly, and what does this term mean in principle?

Monopoly and regulated activity - what is the relationship?

The connection between these two concepts is very strong: under controlled activity most often means the activity of state or natural monopolies. The state’s activity in relation to the subjects of such monopolies is called “controlling” or “regulating”: the state itself sets prices and tariffs for the services of natural and, of course, state monopolies.

Why is this activity taking place?

Natural monopolies are called natural monopolies because they are formed without any artificial interference from the external environment or as a result of collusion or neutralization of competitors.

But how to distinguish state monopoly from natural?

A state monopoly means companies and corporations whose general director may be a private person, but 51% of the shares will belong to the state. In Russia, among these companies: Russian Railways, Rosneft, Gazprom and others.

Natural monopolies are formed as a result of the fact that there is no competition on the market in the provision of such services, and the services and goods provided by the subjects of natural monopolies are irreplaceable.

One of the largest natural monopolies, which are at the same time regulated by the state, is the housing and communal services service in Russia, the activities of which are financed and controlled by the Russian government.