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Annual Report on Competition Policy Developments in Estonia

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Annual Report on Competition Policy Developments in Estonia Organisation for Economic Co-operation and Development DAF/COMP/AR(2018)5 Unclassified English - Or. English 2 May 2018 Directorate for Financial and Enterprise Affairs COMPETITION COMMITTEE Annual Report on Competition Policy Developments in Estonia -- 2017 -- 6-8 June 2018 This report is submitted by Estonia to the Competition Committee FOR INFORMATION at its forthcoming meeting to be held on 6-8 June 2018. JT03431094 This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ DAF/COMP/AR(2018)5 Table of contents 1. About the authority ........................................................................................................................... 3 2. Co-operation ...................................................................................................................................... 4 3. Competition supervision ................................................................................................................... 5 3.1. Amendments to Competition Act ................................................................................................. 5 3.2. Precept of Competition Authority to Tallinn City Government to Reduce Prices Charged for Waste Transport ................................................................................................................................... 6 3.3. Analysis of Prices of Estonia´s Leading Towage Company Alfons Hakans AS .......................... 7 3.4. Precept of Competition Authority to Estonian Lairiba Foundation .............................................. 8 3.5. Court Judgement on “Vodka Cartel” Entered into Effect ............................................................. 8 4. Control of concentrations ............................................................................................................... 10 4.1. Concentrations on the Motor Fuel Retail Market ....................................................................... 11 Tables Table 1. .................................................................................................................................................. 12 Figures Figure 1.................................................................................................................................................... 3 ANNUAL REPORT ON COMPETITION POLICY DEVELOPMENTS IN ESTONIA Unclassified DAF/COMP/AR(2018)5 │ 3 1. About the authority 1. The Estonian Competition Authority exercises supervision in the fields of competition, electricity, natural gas, district heating, postal services, public water supply and sewerage and railways. In addition, the Authority settles disputes regarding airport fees. The Competition Authority is in the area of government of the Ministry of Justice. 2. The functions of the Authority are divided between two divisions. The Competition Division exercises competition related supervision, control of concentration in all economic sectors, analyses the competitive situation and raises competition related awareness. The Regulatory Division implements price regulation and market supervision in the markets of electricity, natural gas, district heating, water, railways and postal services. The External and Public Relations Department is responsible for ensuring effective support services of the Authority (including international and public relations, personnel work and training co-ordination, document management). Figure 1. 3. The Competition Authority employed 45 people as of the end of the year 2016, and 41 people were civil servants and 4 people were employees. The Authority employed 30% of men and 70% of women. The average age of a staff member was 43 years and the average number of years of service at the Authority was 12 years. 4. Most staff members have higher education in economics (business administration, business management, finance, etc.) or law. In addition, there are officials with higher education in other disciplines such as thermal engineering, public administration, chemistry or other. ANNUAL REPORT ON COMPETITION POLICY DEVELOPMENTS IN ESTONIA Unclassified 4 │ DAF/COMP/AR(2018)5 2. Co-operation 5. The Authority considers both international as well as national co-operation highly important. The Authority routinely participates in the work of different field-based working groups, networks and organisations. 6. Competition agencies and sector regulators in various countries share knowledge and experience in the form of bilateral co-operation, but most of the international co- operation is achieved via respective co-operation networks and organisations. 7. The European Commission´s Directorate General for Competition and the national competition authorities in all EU Member States co-operate with each other through the European Competition Network. As all the members of the network apply the European competition rules, it is necessary for the competition authorities to pool their experiences and share best practices in order to ensure the effective and consistent application of these rules. 8. European Competition Authorities is a forum of discussion for the competition authorities in the EU Member States, European Commission and the EFTA States to discuss competition related problems and share experiences. 9. OECD Competition Committee is a committee of the Organisation for Economic Co-operation and Development, focusing on competition issues in the area that includes all 35 members of the organisation. 10. International Competition Network is a global network with members from every region in the world ranging from small agencies to large ones with different resources and capabilities. The network is an informal venue and it is mostly addressed to maintain contacts and create convergence towards sound competition policy principles and application thereof. 11. The Estonian Competition Authority has very good relations and co-operation with colleagues from neighbouring countries. Often the undertakings are active in many neighbouring countries and authorities are facing similar challenges. Annual meetings take place with Latvian, Lithuanian and Finnish colleagues for discussing competition as well as regulatory issues. 12. The European Consumer and Competition Day took place in Tallinn on September 20th. The high-level conference addressing respective areas is traditionally organised by the consumer protection and competition agencies in the framework of the Presidency of the Council of the European Union. In Estonia, the Estonian Competition Authority and the Estonian Consumer Protection Board jointly organised the European Consumer and Competition Day „Paradigm shift in consumer and competition environments – embracing the new reality”. The conference focused on the sharing economy, digital platforms, new technologies and consumer behaviour. Much of it is connected to what is known as the third wave of the Internet, but also with the rapidly changing economy, business models and new type of consumers. The sessions for competition related issues addressed the possibilities for reducing the barriers to free competition and the inevitable necessity of empowering competition authorities for more effective enforcement. 13. The Authority has contributed to co-operation and foreign aid projects whenever possible in terms of human resources. Previously the Authority has been engaged in staff training of Moldovan competition officials. In 2016 a development co-operation project ANNUAL REPORT ON COMPETITION POLICY DEVELOPMENTS IN ESTONIA Unclassified DAF/COMP/AR(2018)5 │ 5 funded by the Ministry of Foreign Affairs and managed by Tallinn Law School was started. One of the aims of the Project „Digital Single Market as a Key element in EU- oriented Georgian Higher Education” is developing co-operation, exchanging knowhow and experiences between Georgian and Estonian Competition Authorities. 14. Just as important as international co-operation is developing co-operation on a national level with both public sector authorities and undertakings or unions thereof. 15. The Authority meets its co-operation partners and undertakings a little more casually at an annual conference “Konkurentsipäev”. “Konkurentsipäev 2016” took place on December 13 in Tallinn. The conference traditionally brought together undertakings, experts from various sectors of the economy and co-operation partners from the public sector. 3. Competition supervision 16. The competition supervisory activities are generally divided in two major parts: solving cases related to competition restricting agreements and conducting proceedings related to the activities of undertakings in a market dominant position. For the Authority, that means conducting criminal, misdemeanour or administrative proceedings. In addition, the Authority analyses the competitive situation in different economic sectors and if necessary makes proposals to respective ministries to improve the competitive situation. 3.1. Amendments to Competition Act 17. The Competition Act and Associated Acts Amendment Act, which lays down the amendments necessary to transpose certain provisions of the Directive 2014/104/EU of the European Parliament and of the Council, governing actions for damages under national law for infringements of the competition law provisions of the Member States and of the European Union, entered into effect on 05.06.2017. 18. The amendments
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