Why does competition matter in regulated sectors?

Competition is about increasing choice and efficiency to benefit consumers and make the economy more productive.  This also applies to sectors which in many countries have been liberalised (such as electricity, water, railways and telecoms),  which are subject to regulation (banking and other financial services) or where the government plays an important role (healthcare, education and local public services).

These sectors can raise complex policy challenges, for example:

• How to make sure that the behaviour of previous monopolist firms does not stifle competition in recently liberalised sectors?
  
  
• Is there a conflict between introducing competition and security of supply in the energy sector?
  
  
• What is the best way to ensure that consumers receive fair treatment when buying complex financial products – without limiting competition between providers?
  
  
• How should enforcers deal with digital markets  as more and more consumers buy products and services online, listen to music and surf the Internet using mobile devices?

See also:

Recommendation on Competition Assessment

Recommendation on Structural Separation in Regulated Industries

The OECD competition work in regulated sectors

The Competition Committee’s work in this area focuses on improving economic regulation and proposing the appropriate policies for competition to deliver more benefits for consumers and growth.  The Best Practice Roundtables identify key issues in each sector and present the latest developments to address those problems.  Many roundtable reports are also a valuable resource for advocating policy reform in a sector, for example by surveying regulations and policies in different countries. They also cover cross-cutting thematic issues, such as the role of behavioural economics in competition policy and price volatility in the case of commodities.

In addition, the OECD on occasion works with member countries to promote reform and foster its competitiveness, most recently in Mexico. Sectoral reports cover the pharmaceutical industry, banking, transportation and telecommunications.

Best practice roundtables

Calendar of activities

Competition assessment toolkit

Country reports & peer reviews

Fighting bid rigging in public procurement 

Recommendations

Reports by the Competition Committee

Reports by competition agencies

Work in progress

About global relations

Hungary centre

Korea centre

Global Forum on Competition

Latin American Competition Forum