ABSTRACT
Regulation is another external factor that impacts the media economy. Regulation is a given with any government; laws and policies are used to address a number of national interests and social policy goals. Regulation in most countries has its foundations in a maxim known as “the rule of law,” which has its origins in ancient Greece through the writings of Plato and Aristotle around 360 bc. The Magna Carta, which was signed by England’s King John in 1215, became a critical document in uencing the development of common laws, with principles embodied in many countries’ legal documents, such as the U.S. Constitution, adopted in 1787. Regulation covers many facets of society and functions at different levels, as does the media economy. Governments use regulation to serve many roles, such as establish laws, levy taxation, establish a military and national defense, meet social policy goals, and for the purposes of this chapter regulate markets as needed to protect the interests of the people and society as a whole. Needless to say, businesses-especially those operating in a capitalistic environment such as a mixed marketprefer to have as little governmental regulation as possible. Regulation in a general sense can limit the pro t potential of a business as well as overall market share.
