We have in depth knowledge and understanding of the EU, UK and Isle of Man regulation frameworks for both telecommunications and energy sectors.
In addition, we have experience of applying the gold standard recommendations issued by EU regulatory bodies to smaller markets in a way which is proportionate and will deliver maximum benefits for consumers.
Natural monopoly industries can benefit hugely from implementing an ex ante regulatory framework. This is separate to the ex-post competition law provisions which may already exist. The concept of ex ante regulation involves introducing rules and requirements (usually called remedies) which are specifically designed to alter the behavior of firms which have been designated with Significant Market Power. The aim is to ensure that markets with high concentration, or other structural barriers to entry can benefit from competition where this is unlikely to occur without any intervention.
There are many approaches which can be taken when introducing regulation for the first time. Modern approaches tend to favour the introduction of economic regulation. This type of regulation is less prescriptive in the sense it will usually allow the regulated entity to retain some degree of decision making power, but it sets boundaries around the behaviours which those firms can exhibit. The benefits of introducing an economic regulatory regime can be significant.
There is a well founded framework in place for telecommunications industries around the world. The introduction of these ex ante frameworks have delivered huge benefits for not only consumers, but the industry and economies as a whole. The key for smaller economies is to apply these frameworks in a way which is proportionate and will deliver maximum benefits for consumers. A key part of this is in identifying the market(s) which are likely to benefit the most from the introduction of, or amendment to, the regulation framework.
Whilst similar in nature, there are key differences between the two. Competition assessments are an important part of ensuring that markets are continuing to work in the best interests of consumers, whilst market reviews are an important tool in the introduction of remedies to overcome concerns which may be uncovered, or to promote competition in certain areas. Competition assessments are an important part in ensuring a healthy functioning market.
Anti-competitive behaviour can be detrimental to not only consumers, but the wider economy also. Healthy competition is the key to a well-functioning economy where consumers can benefit from competitive pricing and companies strive to be innovative and provide the best service possible.
Our consultancy services provide specific knowledge, analysis and insight to help your business understand the economic environments in which you operate. We work with both the private and public sectors, supporting the economic growth and regeneration of all types of businesses on the Isle of Man and further afield.