EU competition policy and the transition to a more competitive communications industry

This chapter explores the role played by competition policy in the development of an increasingly competitive communications industry in Europe. European Union competition policy has played a strong and direct role in the liberalisation of telecommunications markets in the European Union. The transition from monopoly markets to competition in the communications industry has raised several important concerns as far as market power is concerned, and many of these concerns are exacerbated by the fast-changing and technology-driven nature of the industry. The combination of liberalisation and digitalisation has sharpened the battle for market shares, and has encouraged communications and media companies to try to exploit commercial advantages across the supply-chain, from the upstream level of content programming down to the customer interface. The Commission is able, through it competition policy powers, to impose behavioural and structural remedies to eliminate or mitigate market power in the communications marketplace when mergers are deemed to generate negative vertical effects.