Regulators lack powers to prevent vertically integrated
In the network industries, sectoral regulators lack powers to prevent vertically integrated
incumbents from discriminating against market entrants.
In telecommunications, a large
potential lies in breaking up the exclusive right to issue SIM cards (OECD Economic Survey of
Germany 2014, OECD, 2014a).
Steps in this direction have been taken by the Netherlands and
Belgium.
In the railways the authorities are implementing an EU directive which will improve
conditions for competitors to access the network. But the government should also strengthen
the regulator’s powers by granting it more investigative competences, which will help ensure a
level playing field between the incumbent and market entrants.
EU Forecast
euf:ba18a:66/nws-01