The Impact of Government Intervention and the Monopoly on the Regulatory Performance of the Competition Council of Iran in the Car Production and Ride-Hailing Markets: A Legal-Economic Perspective

Zarei, Mohammad Hossein; Aghaei, Mehrdad

doi:10.48308/eclr.2025.237594.1108

The Impact of Government Intervention and the Monopoly on the Regulatory Performance of the Competition Council of Iran in the Car Production and Ride-Hailing Markets: A Legal-Economic Perspective

Document Type : Original Article

Authors

Mohammad Hossein Zarei ¹ ^¶

Mehrdad Aghaei ²

¹ Associate Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran Corresponding Author Email: m_zarei@sbu.ac.ir

² Phd Candidate, Faculty of Law, Shahid Beheshti University, Tehran, Iran.

https://doi.org/10.48308/eclr.2025.237594.1108

Abstract

This study critically assesses the performance of Iran's Competition Council in regulating the car manufacturing and ride-hailing sectors. Employing a descriptive-analytical methodology, the research scrutinizes the Council's resolutions, official documents, and conducts comprehensive legal and economic analyses. The findings reveal that, although the Council has enacted twenty-two regulations aimed at curbing monopolistic practices and fostering competition within the car industry, its effectiveness has been significantly impeded by the persistence of state-led oligopolies, governmental interference, and inherent structural constraints within the Council. Conversely, the Council has demonstrated comparatively better efficacy in the regulation of the ride-hailing market because of enjoying more independence and lack of governmental interferences, notwithstanding considerable legal and economic hurdles, although this performance and the issued rulings entail several flaws. The study concludes that the Council’s capacity to regulate the car manufacturing sector has been substantially undermined by excessive governmental involvement, the proliferation of oligopolistic dominance, and the lack of enough independence of the Council itself, therefore this institution's efficiency has been affected strongly. To enhance regulatory performance and fulfill its statutory objectives, the study recommends the complete withdrawal of government from the car manufacturing market, structural reforms to reinforce the independence of the Council, and amendments to Chapter 9 of the Act on Implementing the General Policies of Article 44 of the Constitution of Iran

Keywords

Competition Council

car manufacturing market

online ride-hailing market

government intervention

monopoly

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