29 April 2011
In a recently published report entitled "Smart regulation – well-functioning markets", the FCA states that if regulation is of a poor quality, this may restrict competition even more than competition restraints by undertakings. Smart regulation on the other hand is necessary and has benefits which clearly exceed the drawbacks.
The extent and quality of regulation have a major impact on the functioning of the markets and thereby on the competitiveness and efficiency of the markets. The report pays special attention to the market impacts of regulation, and on impact analysis and its apparent defects in Finland.
The report lists the basic elements of smart regulation and illustrates them with sectoral examples. Eleven industries have been chosen for closer scrutiny in which regulation is in one way or another a main element of the economic environment and has relevance for topical societal decision-making.
The industries have been grouped into four: the networking industries, the environment, public undertakings and others. In order of presentation, the sectors are the following: 1) post, 2) broadband market, 3) banks, 4) employee pension scheme, 5) construction, 6) trade, 7) waste management, 8) municipal enterprises, 9) public broadcasting business, 10) taxi traffic and 11) district heating.
In addition to competition control, it is the task of the FCA to generally promote competition and to analyse the impacts of competition. The published report forms part of this work. The FCA believes that the report will provide useful views to the decision-makers and legislators.
English summary of the report
Further information: Head of Research Mr Ari Ahonen