The Promotion of Competitive Neutrality by Competition Authorities

Significant market distortions may arise when some enterprises benefit from undue competitive advantages conferred by state actions, for example on the basis of their ownership, nationality or their activity in the market. These distortions can prevent competition from reaching its potential for economic growth, productivity and innovation.

In particular, they may discourage investment, create regulatory uncertainty, and encourage other jurisdictions to adopt similar distortions that undermine a global level playing field. Competition authorities have a role to play in promoting the application of competitive neutrality principles, including addressing distortions through their enforcement tools, and advocating for neutrality in state actions ranging from subsidies to procurement.

In December 2021, the Global Forum on Competition featured a roundtable discussion to introduce the concept of competitive neutrality, explored how authorities around the world have promoted competitive neutrality, and highlighted the recently-adopted OECD Recommendation of the Council on Competitive Neutrality.

This page contains all related documentation. 

• State intervention can distort the level playing field by treating some market players (including public, private, domestic, and foreign enterprises) differently to others. 
• It is crucial for competition authorities to address public restraints as well as private restraints, through both advocacy and enforcement initiatives. Public and private restraints may be linked. An inclusive approach can help foster regional integration. 
• Competition authorities may undertake enforcement actions to address or remove anti-competitive regulatory and administrative acts. This involves direct or indirect enforcement. 
• Competition authorities may support public bodies in the design of regulations and reform initiatives. Authorities may have powers to review legislation and to provide advice to government authorities.  
• Competition authorities may use both enforcement and advocacy tools to control public support measures. Enforcement powers are limited to a few jurisdictions.  

OECD note | Note de référence de l'OCDE

Paper by Eleanor M. Fox

Detailed Summary of the discussion

Executive Summary with key findings