| Regulatory Results on Electronic Communication Markets in New Report by the EC – 12/07/07 |
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The European Commission (EC) released a second Communication report about the current EU Regulatory framework for electronic communication networks and services (the “report”) on July 11th, 2007 (together with an accompanying “Staff working document”). The 18 markets listed in the EC Recommendation (2003/311/EC) are here analysed in accordance with the competition principle. Of interest of Radio Broadcasters is Market 18: “Broadcast transmission services, to deliver broadcast to end users”.
In total, 600 regulatory decision results have been sent by National Regulatory Authorities (NRAs), which the EC has reviewed in the report. The consultation mechanism (between NRAs and EC), also called “Article 7 procedure”, plays a vital role in achieving the objectives of consistent regulation: NRAs have to notify measures to ensure competition exists in the markets listed in the Recommendation (2003/311/EC). A good overview of the various markets’ notifications can be found p. 4 of the “Staff working document”. The objectives of an open, competitive and innovative internal market for electronic communication within a single European Information Space are not yet completed. Some obstacles remain, highlighted by the report. It nevertheless concludes that the review mechanism has worked to create coherent implementation of the regulatory framework and improve transparency. The EC observes that the consistency in remedies taken by NRAs when an undertaking enjoys significant market power in a given market is not complete. Different remedies have been found in similar markets, and not always has the most efficient one been chosen. Market 18 (p. 11 of the report, and p. 13 and p. 493 of the “Staff working document”) is divided in many submarkets. Only 16 NRAs have notified this market to the EC. It is therefore difficult to assess whether the market is competitive or not, and if it should be removed from the Recommendation; as for the 16 notifications, they tend to show that “a considerable number of submarkets were found to be competitive”. Further steps that need to be taken to solve competition problems include consideration of remedies to fit appropriate market situations and further streamlining of market review to minimize the administrative burden: at the end of October 2007, the review of the EU Regulatory framework for electronic communications networks and services will take this into account.
To read the Communication please click here |
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