Communications Networks, Content and Technology

Market-based Regulation - Casework

Market-based Regulation - Casework

Regulatory Coordination & Markets (Unit B.3)
Goal: 

Ensure consistent regulation of national (or smaller) electronic communications markets across the EU, by effective ex ante scrutiny of intended national measures, to safeguard competition, foster investments and further the single market.

Action: 

We assess draft regulatory measures from national regulatory authorities (NRAs) and prepare related Commission decisions. By scrutinising the draft measures and proposing interventions as appropriate, we ensure consistency of market-based economic regulation in the single market, ensuring effective competition, investment and market integration.

Situation: 

We observe inconsistent economic (market-based) regulation across Member States, impeding the consolidation of the internal market for electronic communications as well as investment and growth.

Mandate: 
Under Articles 7 and 7a of the Framework Directive (FWD), the Commission is obliged to ensure consolidation of the internal market for electronic communications. The Commission carries out this task by way of scrutinising draft regulatory measures of NRAs as regards economic regulation of markets (principally regulation of operators with significant market power), with a view to achieve consistent regulation of markets across the EU, avoiding both under- and over-regulation. Within one month of receipt of a draft regulatory measure, the Commission can either make comments on, suspend or, after an additional two or three months investigation, request either withdrawal or amendments of draft measures, respectively.

Input

Full-Time Equivalent: 
15.00
People: 
15.00 full-time equivalent (FTE)
Collaboration with other DGs or agencies:
Budget: 
€3.5mio (2015-2018) for translations of all draft regulatory measures notified to the Commission, provided by an external contractor.
Outputs

Notifications from NRAs under Article 7 of the Framework Directive

Amendment of (or an additional) Commission Empowerment Decision by Q2 2015The current Article 7-case handling Empowerment Decision needs to be amended (or receive a "partner" decision) in order to include those (new type) notifications of a reasoned proposed extension of the market review period (up to three years), in accordance with Article 16(6)a of FWD, where the Commission has one month to raise objections to such an extension.Renewal of the translation contract by Q1 2015

  1.     Preparation of the tendering documents
  2.     Staff and carry out the work of the Opening Board and Evaluation Committee
  3.     Evaluation of tenders and preparation of the evaluation report

Notifications from NRAs under Article 7 of the Framework Directive

  1. Pre-notification meetings with NRAs  (Number of meetings: around 150 meetings  per year)
  2. Formal requests for information
  3. Case notes to the Commissioner
  4. Draft decisions – submitted to Inter Service Consultation
  5. Commission decisions relating to draft regulatory measures notified by national regulatory authorities, under Articles 7 and 7a of the Framework FWD (by way of background, in 2012, about 150 decisions were adopted, which represents the average over past years). These decisions can take the following forms: 'No comments' are formal letters to notifying NRAs which do not contain any Commission comment on a draft regulatory measure. 'Comments' are formal letters to notifying NRAs containing specific Commission comments on a draft regulatory measure of which the NRA has to take utmost account, before adopting its final measure. 'Serious doubts' signal important concerns with a draft regulatory measure, open an extended investigation by the Commission and suspend any final decision by the notifying NRA. 'Art.7a Recommendations' require the notifying NRA to either withdraw or amend their proposed regulatory remedies for a specific market. 'Vetoes' can relate to market definition or findings regarding significant market power and prohibit a notifying NRA from adopting its proposed regulatory measure, usually in its entirety. 'Serious doubts', Art.7a Recommendations' and 'Vetoes' are far-reaching interventions into national authorities' competences.

Timeframe: 2003 onwards

Indicators

1034

Commission's responses to notifications from NRAs by type of decision

Target >40% 'no comments'; 55% 'comments'; <5% 'Art. 7a Recommendations' of 'Vetoes', after the revised Recommendation on relevant markets will have been adopted and (at least partially) implemented. (2016)
Baseline 22%, 61% and 6%, respectively (11% of notifications were withdrawn by NRAs). (In 2012, the first full year after the FWD was supposed to be transposed into national law.)
Current 31%, 54% and 8%, respectively (7% of notifications were withdrawn by NRAs).
Source

CIRCABC

Follow-up to Art. 7a Recommendations

  1. Analysis of NRAs' adopted regulatory measures following an Article 7a Recommendation
  2. Analysis of whether further legal steps are appropriate in case the NRA had decided not to follow the Recommendation, such as sending a so-called "pilot letter" to the Member State concerned or initiation of an infringement procedure.

Indicators

2973

Compliance of NRAs with the Commission's Article 7a Recommendations

Target 90% of cases in which the NRA decided to follow the Commission's Article 7a Recommendation to ensure a consistent application of remedies across the EU. (2016)
Baseline 50% (in 2012, the first full year after the FWD was supposed to be transposed into national law)
Current 50%
Source

CIRCABC

Results/Impacts

Increase investment in ICT and next generation networks

Increasing investment in ICT and next generation networks in particular, but also consumer take-up, are key factors to building a highly competitive EU economy.

Indicators

2295

DAE ultra-fast broadband "take-up" (lead indicator)

Target 50% of the EU households to subscribe to broadband above100 Mbps by 2020
Baseline 0% (in 2009)
Current 3%
Source

Digital Agenda Scoreboard

Chart URL See the chart

Further the internal market for electronic communications and achieve competitive electronic communications product markets

Further the internal market for electronic communicationsConsistent regulatory approach is a precondition for the existence of a true single market in telecoms. With our work, we are trying to remove artificial barriers to the creation of an internal market, which sometimes exist due to diverging regulatory practices across the Union.Competitive electronic communications product marketsEnsuring effectively competitive electronic communications product markets (especially those listed in the Recommendation on relevant markets) in all Member States is a precondition for investments in next generation access (NGA) networks and innovation. An overview of markets regulated per Member State can be found here

Indicators

2292

Compliance (share of under- or over-regulation of electronic communications markets) , i.e. proportion of markets not regulated / regulated which are / are not indicated in the Recommendation on relevant markets)

Target Reduce below 15% (once the revised Recommendation on relevant markets is adopted and at least partly implemented)). (2016)
Baseline 40% (in 2012, the first full year after the FWD was supposed to be transposed into national law)
Current 30%
Source

CIRCABC

Link to DG CONNECT's Top Level Targets