deregulation

Action to abolish or reduce government controls and supervision over private economic activities, as with the deregulation of the US airline industry in 1978. Its purpose is to improve competition. Increased competition had the effect, in some areas, of driving smaller companies out of business. A tremendous increase in mergers, acquisitions, and bankruptcies followed deregulation as the stronger companies consumed the weaker. A wider array of services and lower prices in some industries also have resulted; see also monetarism; privatization.