In the energy industry it is common for holding companies to own multiple market participants in a specific marketplace. For example, many large corporations in the gas business own both pipeline and/or distribution companies as well as a marketing company. These are known as market affiliates. For obvious reasons, regulated pipelines or utilities are not allowed to favor their own non-regulated marketing companies in providing transportation or other services. Both FERC and state utility commissions vigorously enforce what are known as market affiliate rules. These rules state that regulated entities must treat all customers the same and may not provide any non-public information to companies with which they have common ownership. If any employee provides information to an employee of a related company, this information must immediately be provided to all other customers.
Regulators take market affiliate rules very seriously and significant fines (in the many millions of dollars) have been assessed in the past to companies that have failed to follow the rules. Market affiliate rules are also sometimes called standards of conduct, affiliate restrictions, or affiliate transaction rules.