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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-. LASZLO GYERKO Competition Councillor, Member of the Board Romanian Competition Council. C ompetition and poverty reduction. Direct relationship

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LASZLO GYERKO Competition Councillor, Member of the Board Romanian Competition Council

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

  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) 3

  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 6

  7. Advocacy actions - Retail banking 7

  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 8

  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 9

  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) 10

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

  12. Thank you for your attention!

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