Regulatory capture is a form of government failure that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political interests of special interest groups that dominate the industry or sector it is supposed to regulate.

Regulatory Capture and Whistleblowing

Whistleblowers can play a crucial role in exposing instances of regulatory capture. Often, those in the best position to identify regulatory capture are insiders within regulatory agencies or the regulated industries who observe the negative effects of capture on public safety, fair competition, or other aspects of the public good.

They may reveal information about how regulators are unduly influenced by the industries they oversee, leading to decisions that favor those industries at the expense of the public interest.

Whistleblowing on regulatory capture can have long-lasting effects on public trust in government institutions and the regulatory process, potentially leading to broader debates about the role of government in overseeing various sectors of the economy.