Promoting Competition
Following liberalization in 1998, competition in EU telecommunications markets has driven growth and innovation and the widespread availability of services to the public. Consumers have a wider choice of operators, with new entrants driving prices downwards. Competition brings choice and value for money for users, and stimulates investment and innovation in products and services.
Market opening was a progressive process, brought about by the European Commission using its powers under Article 86 of the Treaty (see the DG Competition website for the specific legislative measures).
Promoting competition - in order to achieve economic efficiency in the interests of users and society - is one of the main objectives of the EU regulatory framework for eCommunications.
National regulatory authorities (NRAs) play a major role in the new regulatory regime, together with the national competition authorities. They also have an important role in helping to ensure that rules are applied consistently in all Member States, in cooperation with other NRAs and the Commission. NRAs in particular have to assess the degree of effective competition in relevant markets, and decide about the regulatory obligations to be imposed on players with significant market power.
Promoting competition is one of the three primary objectives for NRAs.
The new framework contains pro-competitive incentives, that ensure that once competition is effective on a specific market, ex-ante regulation has to be withdrawn.
However competition is not the complete answer, and the regulatory framework also includes safeguards to ensure that user needs are met when competition fails to deliver (see Universal service)
Last update: 18/01/2007