Deregulation is the process of removing or reducing government rules in specific industries. This allows businesses to operate with more freedom based on market demand. Supporters believe that increased competition leads to better efficiency, new inventions, and lower prices for customers.

Key points:

• It is usually applied to industries where companies can effectively compete with each other.
• Historically, it has affected sectors like airlines, telecommunications, energy, and banking.
• Benefits include lower costs, more choices for consumers, and faster innovation.
• Critics argue that it may lead to market failure if there are not enough protections against monopolies or unfair business practices.