Legal Question in Constitutional Law in Texas

Competition with the U.S. Government

I asked this question of the U.S. Courts with no reply. I am interested in federal legislation that addresses competition with the federal government for material gain. For instance, if a domestic government entity is engaged in an activity that produces revenue for that entity, can a private interest legally compete for that revenue, diminishing those revenues normally collected by government?


Asked on 9/16/06, 8:32 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Competition with the U.S. Government

As long as the service you provide is legal, there should be no problem. This is why FedEx and UPS are able to compete against the postal service.

There are some things only the government is allowed to do, though, and you need to be sure what you want to do isn't among them. For example, in most states you cannot legally run a gambling business even though the state runs a lottery. The reason gambling is forbidden isn't to protect the lottery from competition (most states outlawed gambling long before they started running lotteries), but the fact that the state makes money from its lottery does not mean you can do the same.

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Answered on 9/16/06, 10:48 pm


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