1. COMPETITION ASSESSMENT of Laws and Regulations
OECD Tools and Experience
III Ukrainian Antitrust Forum
Federica Maiorano, OECD Competition Division
31 May 2017

2. Agenda What is competition assessment?
What is the Competition Assessment Toolkit?
Some examples from international experience

3. What is competition assessment?
Competition assessment of laws and regulations
Identify regulatory restraints to competition
Develop alternative, less restrictive policies that still achieve government objectives
In practice
What? Scope of the review
When? Ex ante / ex post
By whom? Institutional set up

4. Why competition assessment?
Rules and regulations typically have desirable socio-economic objectives
But also the potential to harm the efficient functioning of markets
Changes in technology and market conditions
More market in regulated industries
Better regulation, better economic outcomes

5. The benefits - Lifting regulatory restrictions
Note: By how much GDP would be higher, long-term, if economies implemented product market reforms. It is assumed that product market reforms move each economy's regulations gradually towards best practice, as measured by the OECD Product Market Regulation indicator.
Source: OECD (2013), OECD Economic Outlook, Vol. 2013/1, OECD Publishing.
/eco_outlook-v graph161-en

6. OECD Competition Assessment Toolkit
The “Principles” volume
Principles, describing benefits of competition and the checklist
The “Guidance” volume
Detailed technical guidance on key issues to consider in competition assessment
The “Manual” volume
Step-by-step guide for performing competition assessment

7. Initial screening – four groups of questions
Do the rules/regulations limit the number or range of suppliers?
Do the rules/regulations limit the ability of suppliers to compete?
Do the rules/regulations limit the incentives for suppliers to compete?
Do the rules/regulations limit the choices and/or information available to consumers?

8. IDENTIFY POLICIES TO ASSESS
Step 1
IDENTIFY POLICIES TO ASSESS
Step 2
APPLY CHECKLIST
ANY COMPETITION DISTORTION?
YES NO
Step 3
IDENTIFY POLICY OBJECTIVE
STOP
IS THE RESTRICTION PROPORTIONAL ?
Step 4 NO
YES
LOOK for ALTERNATIVE
STATUS QUO
SELECT BEST OPTION
Step 5
IMPLEMENT BEST OPTION
Step 6
STOP
EX-POST ASSESSMENT

9. Detailed review potentially leading to recommendations
Objective of regulation
Identifying alternatives
E.g. international experience, sector experts, industry stakeholders
Selecting among alternatives
Qualitative, e.g. arguments based on economic literature or studies
Quantitative, e.g. consumer benefits / surplus based on estimated effects in another countries / markets, customised analysis estimating impact

10. Examples of Pro-Competitive Initiatives in Reviews of Existing Rules and Regulations
Australia (Hilmer process in mid-90s)
UK (Guidelines on Competition Assessment)
Korea
European Commission
Greece, Romania, Portugal and Mexico (direct OECD involvement)
Review of all relevant sector legislation in a number of industries, e.g. retail, wholesale trade, construction

11. A variety of processes and institutional settings
Directly engage with the policy development process
E.g. competition assessment, advocacy
One-off assessment, or system to challenge regulations
E.g. multi-market commission independent from government and competition authority
Flexible methodology
OECD toolkit helpful in the application of a wide variety of Competition Assessment processes
Source: 2014 OECD report, based on a survey of over 30 countries

12. Thank you http://www.oecd.org/competition/toolkit