Seven historic cases of incumbents using regulation to lock out competition
neil_chilson · x · 2026-09-13
In a debate with economist Alex Tabarrok over AI regulatory capture, neilchilson lists historic precedents of incumbents embracing regulation to raise entry barriers: Commonwealth Edison inventing state utility regulation, Pan Am's exclusive international rights, Alcoa tariffs, Eastern Airlines opposing deregulation, Phillip Morris backing FDA tobacco oversight, Chicago meatpackers supporting federal inspection, railroads and the ICC, and every incumbent comms tech with the FCC. He grants Anthropic et al. are earnest, not seeking capture — but would accept it as a side effect or means.
Related event: Analyst: AI Labs May Not Seek Regulatory Capture But Welcome Its Effects(2 posts)→
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