News, 18 January 2012
The competition intensity in the construction sector is relatively weak, even if the market structure in it is not the most concentrated of all sectors, it is maintained in the recent opinion of the Finnish Competition Authority. One reason for the situation may be the operating environment gradually created by measures of the public authorities which does not encourage the field to particularly intense competition.
The FCA’s opinion describes the main features of the operating environment, which include: (1) land use policy and zoning, including terms and policies related to building sites, (2) the extremely profuse public regulation in the field, (3) the deviation of national building regulations from supranational standards and (4) imbalance between markets of owner-occupied and rented apartments. According to the information obtained by the FCA, the subsidized sheltered housing markets may also contain features that are harmful to competition.
The opinion submitted to the Ministry of the Environment on 13 January 2012 is connected to the preparation of the new housing policy programme by the Ministry.
Head of Research Ari Ahonen