The market participant exception establishes an exception to the Commerce Clause's scrutiny for the state when the state functions not as a regulator of the market, but rather as a market participant. The impact of this exception is felt in instances where the state itself produced goods for commerce or where it has engaged in a program of subsidies or other economic incentives to aid in-state businesses.
[Last updated in July of 2023 by the Wex Definitions Team]
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