The role of regulators and competition authorities in ensuring competitive markets in Malta

Abstract

Competition issues arise in a vast number of specialized industry sectors such as water and energy; financial services; communications; broadcasting and many others. These areas require both a depth of relevant industry understanding and expertise, and also a strict application of general competition rules that ensure the correct functioning of the market. The principal objective of this study was to assess the way and the extent to which sector-specific National Regulatory Authorities and Competition Authorities, both national and European, promote and encourage competitive markets in Malta. This thesis takes into account the various characteristics of NRAs to discover whether these could in some way hinder competition, such as when an authority uses its discretion in such a manner as would result in the foreclosure of the market. This could be due to excessively high minimum standards for access, to mention one. Of utmost importance in such study was an inquiry into the degree of independence and autonomy of these authorities; their expertise; their decision-making and enforcement powers; the consumer protection element in each and their appeals mechanisms. The liberalisation of various markets has in recent years also played an important part in accentuating the role and functions of regulatory authorities, through an increase in new players on the market. The need arose for better and improved regulation which is provided by independent and efficient regulatory authorities, ideally having no connection with any of the operators in any given market. A study was also carried out in relation to the interface between the functions of National Regulatory Authorities and National Competition Authorities, those of National Courts, and those of the European Commission, and an investigation of any overlap in their duties and functions was undertaken. A comparative approach was also adopted so as to investigate whether the local authorities can draw from foreign experience to improve the existing regulatory system.