1 LASZLO GYERKO Competition Councillor, Member of the Board Romanian Competition Council Sofia Competition Forum November 12th, 2012 Bringing benefits of competition to low-income groups -priorities for NCAs-

2 Competition and poverty reduction  Direct relationship  Lower prices for basic necessities  Lower costs for businesses  Incentives for innovation and investment Developing and transition economies – more vulnerable to anticompetitive practices

3 Areas of intervention Advocacy initiatives  Competition policy – priority area for reform  Promote wider understanding in all levels of government  Remove regulations that create barriers to entry and prevent benefits from reaching targets Effective enforcement actions  Focus on unnecessary distortions (cartels, abuse of dominance)

4 Advocacy tools Need of appropriate operational tools  RIA – competition filter  Attending Gvt preparatory meeting  Screening draft normative acts  Concluding cooperation protocols with Gvt authorities  Setting up common working groups (e.g. Bid Rigging Module)

5 Setting priorities – key sectors with outstanding impact on overall population  2004 – 13 key sectors (energy, telecomm, postal services, food retail etc)  List reviewed regularly  Market studies and sector inquiries  Results and recommendations – enforcement actions and specific advocacy initiatives

6 Advocacy actions - Retail banking Harmonization with EU Directive on consumer credit (2010) – extension of scope in RO Proposal of RCC -elimination/reduction of the early reimbursement fee to all types of consumer loans Impact analysis (2011):  increased client mobility,  lower switching costs  higher competition on the retail banking market

7 Advocacy actions - Retail banking

8 Advocacy actions – public procurement  Organizational changes – dedicated unit for PP  Cooperation protocols  Implementation of international best practices – OECD Guidelines on Bid Rigging, introduction of CIBDs  Enforcement actions – 3x no. of investigations on bid rigging in 2011 and 2012

9 Liberal professions  Enforcement actions – taxi services, dental technicians, bailiffs, accountants Issues for intervention (ex-ante - advocacy or ex-post - enforcement)  Setting min/max fees and tariffs  Barriers to entry  Consultations in professional associations – facilitator of cartels

10 Sector inquiry – milk market  Asymmetry in bargaining power between supply and demand  Role of contracts  Price transparency  Impact of EU agricultural policy  Codes of best practices Recommendations:  Amendments of the legislative framework  Market mechanisms  Correction of asymmetries (i.e. framework contracts)

11 Conclusions Benefits may only be generated by:  Setting priorities  Effective enforcement  Supporting policies  Advocating for Gvt support  Raising awareness

12 Thank you for your attention!