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Competitive neutrality stands for equal operating conditions for public and private sector business activities.
The purpose of Competition Act Chapter 4a is to safeguard equal operating conditions, i.e. ensure competitive neutrality between public and private sector business activities. The Finnish Competition and Consumer Authority (hereinafter referred to as FCCA) has the authority to intervene – with legally mandated requirements and restrictions – in the provision of goods and services in public sector business activities, if the operating models used (such as pricing below cost) or operating structures (such as undertakings controlled by the public sector) prevent or distort competition on the market.
The Competition Act does not prohibit public organisations from practicing business or competing with private enterprises on the same market. The objective is to establish neutral competitive conditions between public and private sector business activities.
In cases involving state aid, the FCCA does not act in an official oversight capacity, even though many problems related to competition neutrality may stem from practices that violate state aid regulations.Sources of law concerning application of Competition Act Chapter 4 a To what public organisations does the law apply? What is protected under neutrality legislation? What is the trigger for intervening in public sector undertakings? When is it not possible to intervene in cases involving restraints on competition neutrality? FCCA obligation to prioritise Procedure to be used in the investigation of neutrality cases Submitting a request for action