This presentation by Lynn ROBERTSON from the OECD Competition Division was made during the discussion on "The role of market studies as a tool to promote competition" held at the 15th Global Forum on Competition on 1 December 2016. More papers and presentations on the topic can be found out at www.oecd.org/competition/globalforum/the-role-of-market-studies-as-a-tool-to-promote-competition.htm

1. THE ROLE OF MARKET STUDIES
AS A TOOL TO PROMOTE
COMPETITION
Lynn Robertson
Competition Division
Directorate for Financial and Enterprise Affairs
Global Forum on Competition Session II - 1 December 2016

2.  Topics covered:
 meanings, purposes and goals of MS
 legal powers to carry out MS
 powers to collect and use information
 institutional framework and level of independence in
the selection of MS
 successes and challenges
 Replies received from 62 national authorities, 59
jurisdictions
 2 lack powers to carry out market studies
 60 authorities have been computed in the survey
OECD Survey on Market Studies:
Features

3. Reasons to conduct a market study…
 A sector is not working well for consumers but no
suspicion of a violation: 72%
 A market / sector is not working well for consumers but
more investigation is needed to deciding whether to
initiate an enforcement action: 70%
 These two main different reasons are not mutually
exclusive.

4. Competition authorities shared their primary
motivations to conduct market studies…

5. … and their potential outcomes

6. Legal powers to carry out market
studies
The 68% of surveyed competition authorities that
conduct market studies enjoy specific powers for
that purpose.
Only 26% perform market studies under their
general powers to protect and foster competition,
which they interpret as including powers to
conduct market studies.
3% do not have powers to perform market studies.

7. Confidential information is protected by
a majority
Confidential
Information
Non-confidential
Information
Protection of information
59 authorities (98% of
respondents)
26 authorities (43% of
respondents)
Same protection for
information whether
obtained for market studies
or enforcement actions
46 authorities out of
59
Possibility of using
information obtained on
market studies for
subsequent enforcement
actions
38 authorities:
▪ always: 30
▪ under conditions: 8
43 authorities:
▪ always: 37
▪ under conditions: 6

8. Authorities may have powers to…

9. Powers to impose sanctions
63% powers
to impose
sanctions
directly
17% resort
to courts
to compel
8% lack
powers to
impose
any
sanctions
10% did not
reply

10. Drivers to success and challenges
Successes
Challenges
well-defined purposes and goals
active cooperation by stakeholders
clear and concise recommendations
human and financial resources
data collection
Lack of cooperation by stakeholders

11.  Three jurisdictions (Iceland, Mexico and the UK)
make use of market investigations.
 Among these jurisdictions there are differences
in how the instrument is applied, as well as in
the relevant powers and procedures.
 In all three jurisdictions, market investigations
are used for the purpose of enforcement.
Market investigations

12.  Categorization of MS according to their main
purpose
 Examination of different legal frameworks for
undertaking market studies, including powers
to collect and use information
 Analysis of procedural safeguards for the
protection of interests of stakeholders
 Overview of various possible institutional
design settings
Suggestions for future work