The domestic regulation contained in Article 6 of GATS and its developments have been accompanied by a growing public debate about their substantive nature, benefits and detriments, which include, inter alia, the definition, scope, and purpose of domestic regulation, and some ambiguous comments, such as “Article 6 is being strengthened with the aim of requiring Members to show that they are employing least trade-restrictive policies. The legal tests under consideration would outlaw the use of non-market mechanisms such as cross-subsidization, universal risk pooling, solidarity, and public accountability in the de-sign, funding and delivery of public services as being anti-competitive and restrictive to trade.”\r This paper discusses and analyses the legal dimension of domestic regulation. The first four sections analyze the definition, scope and pur-poses of domestic regulation. The fifth section discusses controversial issues involved in developing Disciplines on Domestic Regulation. This paper also aims to stimulate academic debate and clarify some ambi-guous concepts.