30 September 2006

Making market definition work: the case of telecoms (de)regulation

Under the European regulatory framework governing electronic communications established in July 2003 national regulatory authorities (NRAs) can impose regulatory obligations on telecoms operators ‘only where the [relevant] markets are considered not to be effectively competitive as a result of such undertakings being in a position [of significant market power (SMP)] equivalent to dominance within the meaning of Article 82 of the EC Treaty’. In other words, the hurdles that must be cleared before regulatory intervention can occur are defined explicitly to meet general competition law standards …

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