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The European Union has strict laws, embodied in the EC Treaty, on the conduct of competition within Europe. One of the key elements of these rules is that monopolies should not be allowed to distort competition. However, it is realized that on some occasions, there are certain reasons that can allow the national authorities to create a state monopoly in particular sectors as this can have benefits which go beyond the maintenance of competition. However the rules surrounding where a natural authority can create and sustain monopoly are very strict and are given to attack by individuals/companies who believe they are being unfairly treated. This text includes an examination of Article 90 in respect of the position of public undertakings and their compatibility with EC competition rules. It also looks at the legal position of state monopolies following European court cases which have restricted national interests, and deals with specific industry sectors: energy; telecom; postal services; transport broadcasting; and commercial monopolies.