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Government-granted monopolies must also be distinguished from the (nevertheless similar) phenomenon of government-sponsored cartels. In a government-sponsored cartel, the government establishes an organizational structure to (partially) coordinate the actions of several independent providers. In a government-granted monopoly, the government establishes one sole provider of a good or service (although, in some cases, that sole provider may be created by forcibly combining several formerly independent providers).

Under mercantilist economic systems, European governments with colonial interests often granted large and extremely lucrative monopolies to companies trading in particular regions, such as the Dutch East India Company. Today, government-granted monopolies are often found in public utility services such as public roads, mail, water supply, and electric power, as well as certain specialized and highly-regulated fields such as educationEducation encompasses teaching and learning specific skills, and also something less tangible but more profound: the imparting of knowledge, good judgement and wisdom. One of the fundamental goals of education is to impart culture across the generations ( and gamblingGambling (or betting is any behaviour involving the risk of money or valuables on the outcome of a game, contest, or other event in which the outcome of that activity is partially or totally dependent upon chance. Though for many it is a form of recreatio. In many countries lucrative natural resources industries, especially the petroleumNodding donkey pumping an oil well near Sarnia, Ontario, 2001 Petroleum (from Latin petrus rock and oleum oil), mineral oil or crude oil sometimes colloquially called black gold is a thick, dark brown or greenish flammable liquid, which exists in the uppe industry, are controlled by government-granted monopolies.

Government-granted monopolies may take one of two different forms. A monopoly may be created through the direct nationalizationNationalization (or Nationalisation , also known as public ownership or socialization (or Socialisation) is the act of taking private assets into government or state ownership. It is the opposite of privatization. Arguments for nationalization In the case of an industry, i.e., bringing a particular industry under the direct and exclusive control of government agencies, with proceeds going into the government budget. In other cases, monopoly privileges may be granted to private individuals or firms, with most of the control and profits being privately retained.

The latter form of monopoly is often closely related, in both motivations and effects, to government-sponsored cartelization of major industries, and is often accompanied by increased government regulation and oversight, as well as substantial subsidiesA subsidy is a grant or monetary gift given by a private person or entity (often a government) to another private person or entity, as financial assistance or to help launch an enterprise. Critics of government interventions in free markets often use a wi from tax funds.

Many commentators have also pointed out that what are sometimes called intellectual propertyIn law, intellectual property is a form of legal entitlement which allows its holder to control the use of certain intangible ideas and expressions. The term intellectual property reflects the fact that once established, such entitlements are generally tr laws—laws granting protections through copyrightA copyright is a form of intellectual property that grants its holder the sole legal right copying their works of original expression, such as a literary work, movie, musical work or sound recording, painting, computer program, or industrial design, for as, patentA patent is a set of exclusive rights granted by a government to an inventor or applicant for a limited amount of time (normally 20 years from the filing date). The term "patent" originates from the term patere which means to lay open (to public inspectios, and trademarks—represent government-granted monopolies on the copying and use of particular items of information. It's worth noting, though, that intellectual property restrictions are usually motivated by concerns different from—indeed, opposite to—those that motivate other government-granted monopolies. Whereas other government-granted monopolies are usually motivated by a perceived need for greater public control over the accessibility and quality of essential goods and services, "intellectual property" monopolies are usually motivated by a perceived need for greater private control, by an artist or inventor, over the use and profits from their work. Similarly, whereas most other government-granted monopolies are accompanied with extensive regulations intended to prevent the taking of monopoly profits by the monopolist, "intellectual property" monopolies are usually granted with the express purpose that artists and inventors will reap monopoly profits from their work, giving them a greater incentive to persist in creative work, and preventing low-cost unauthorized copies from driving them out of the market.