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Objectives of market research

27 August 2018
Snowcap Mountain

The Competition Authority conducts market investigations on its own initiative, but a market investigation may be based on substantiated submissions, suggestions and viewpoints from stakeholders and the public.
Indications of any circumstances or conduct that may warrant a market investigation may include the following, in accordance with paragraph 2 of Article 2 of Regulation No 490/2013 on market investigations by the Competition Authority:
a) Actions or arrangements in a monopolistic market that appear to facilitate harmful coordinated behaviour by companies. .
b) Prices, service, quality and other competitive factors that indicate limited market functioning.
c) The structure and organisation of an undertaking with a very strong market position which may significantly limit the competitive constraint that rivals can provide.
d) Distortion of competition which appears to stem from the corporate ownership and management relationships.
e) Anticompetitive discrimination by public authorities against competitors.
f) Fees and other costs that may limit customers' ability to switch their business from one company to another.
g) Lack of information or unclear terms which may potentially discourage customers from switching their business from one company to another.
h) Insufficient access by undertakings to facilities which are necessary to compete effectively in the relevant market.
When the Competition Authority assesses whether to initiate a market investigation, it considers, inter alia, the following factors, in accordance with Article 3 of Regulation No 490/2013:
a. whether there are reasonable grounds for suspicion that conditions or conduct in the relevant market prevent, restrict or distort competition to the detriment of the public,
b. the importance of the relevant market for consumers and business,
c. indications and previous cases concerning restrictions on competition in the market,
d. the likely direct and indirect effects of competition-limiting measures on consumers,
e. estimated cost of the research,
Priority of the Competition Authority,
g. funding allocated for market research.

Market research procedure

Rules govern the procedure for market research.
No. 490/2013, on market investigations of the Competition Authority, pursuant to the 2nd paragraph of Article 8.
competition law. These rules provide for the scope and objectives
market research, its preparation and commencement, procedure and conclusion of research.
Otherwise, rules apply to market research, proceedings and decision-making.
No. 880/2005, on the procedure of the Competition Authority, and the rules of procedure of the Board
of the Competition Authority No. 902/2011, pursuant to paragraph 3 of the aforementioned Article 10 of the rules
No. 490/2013.

If the Competition Authority has reason to do so
When undertaking a market research, a research plan shall be prepared for its organisation.
of the investigation. The Competition Authority's board discusses it but confirmation
The management of the programme marks the beginning of the market research.

On the recommendation of the Director General
The Competition Authority's board is authorised to appoint an advisory group.
for each market research study individually.

Whether the board has approved the research plan
The main stages in the research are as follows:

1)   
Start of market research announced to
party.

2)   
Information gathering and evaluation of data.

3)   
The Competition Authority's preliminary assessment published in a report.

4)   
The public and stakeholders are given an opportunity to
to comment on the draft assessment.

5)   
An open meeting will be held where stakeholders and others will have the opportunity to
to make their views on the draft assessment report known.

6)   
A decision has been taken on how to conclude.
a market research project which may consist of one or more of the following tasks:

a)   
authorises amendments to Article 16
High standards and/or the organisation of companies are applied.

b)   
Powers of Article 16 applied to
Competition-restricting practices by public authorities.

c)   
Special investigation launched into possible breach of
restrictive rules of competition law or provisions in decisions of competition authorities.

d)   
Opinion and/or recommendations.

e)   
If the results of the investigation do not lead to
The binding interventions are set out in a publicly published report.

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