The Spacing Guild enjoys its profits and share of political power. However, Navigators need spice to calculate safe travel paths. The only source of spice is on the planet Arrakis, or Dune. This makes spice the most precious resource in the economy, and thus also regulated. And vulnerable…
Any disruption in spice supply would delay travels and render the Navigators powerless. The protagonist, Paul, capitalized on this when he threatened to destroy all spice fields, successfully coercing the Guild to his will. When Paul became emperor, he limited the supply of spice to the Guild, realizing how stagnant the previous regulation made the economy.
In the long run, the Guild grew obsolete in power as spice became inevitably scarce. Instead navigation computers get developed, creating efficient and renewable space travel. Thus, regulation placed a barrier on innovation. It also led to the downfall of the industry it was meant to protect; economic forces prevailed over unstable political forces.
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