Regulatory capture occurs when the regulator begins to become supportive of the arguments used by the industry.

Question

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Regulatory capture happens when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of the industry it is charged with regulating, often to the detriment of the public interest. This can manifest as the agency adopting industry-friendly policies or regulations, which can occur when the regulator becomes supportive of the industry's arguments or perspectives.

Regulatory Capture Occurs When the Regulator Begins to Become Supportive