Transforming Romania's Competition Architecture to Make Markets Work

Transforming Romania's Competition Architecture to Make Markets Work


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Transforming Romania's Competition Architecture to Make Markets Work by World Bank

Romania identified competition as key to its effective economic development and is positioning the Competition Council to become more visible and effective. Improving Romania's competitive environment will attract new firms, weed out inefficient ones, and enhance growth potential. An effective competition policy leads to success in the areas of Romania's domestic market efficiency, economic growth and European market integration. Following a comprehensive functional review of the Romanian Competition Council carried out by the World Bank in 2010, weaknesses, needs and priorities were identified. This book presents the results of the World Bank's Advisory Services which were designed to provide solutions in the identified reform areas during 2012-2015. The Advisory Services provided an innovative delivery model that involved integrated expertise to (i) review the legal and regulatory framework for competition; (ii) offer advocacy support to streamline competition policy principles with other governmental policies and strengthen intergovernmental relations, especially with sectoral regulators (electricity and telecommunication) and the prosecutor's office; (iii) state-of-the-art capacity building to strengthen the Council's staff's technical knowledge; and (iv) optimize internal procedures to allow for improvements in institutional functioning using Enterprise Architecture methodology, which provided an in-depth institutional assessment and the development of a target business and information technology architecture. The Competition Council has started to apply some of the upgraded regulatory instruments. These, combined with the analytical skills in antitrust law and economics acquired with the World Bank support, have been already applied in recent antitrust cases, market inquiries meant to identify competition constraints in sectors that have great importance for consumers and infrastructure projects with state aid elements.

Product Details

ISBN-13: 9781464806209
Publisher: Bernan Distribution
Publication date: 09/24/2015
Series: World Bank Studies
Pages: 96
Product dimensions: 7.00(w) x 10.00(h) x 0.24(d)

Table of Contents

Acknowledgments ix

Executive Summary xi

Abbreviations xxiii

Chapter 1 Context 1

Introduction 1

Notes 8

Chapter 2 Legal and Regulatory Framework Governing Market Competition 9

Introduction 9

The Romanian Competition Law 9

The State Aid Law 12

The Unfair Competition Law 14

Sector-Specific Legal Framework Governing Competition: The Railways Legislation Package 15

Telecommunications: Broadband Infrastructure 16

Electronic Communications 17

Competitive Processes Associated with Public Procurement 17

Notes 18

Chapter 3 Operational Framework 21

Introduction 21

Rules, Structure, Staffing, and Strategy 21

Governance and Board Operations 23

Information Technology Environment 26

Notes 30

Chapter 4 Enforcing Competition Law 33

Preventing Anticompetitive Mergers 33

Fighting Exclusionary Business Practices 34

Ensuring Access to File and Confidentiality 35

Fostering Deterrence: Fines, Leniency, and Cease and Desist 36

Minimizing Competition Distortions Associated with Granting State Aid 38

Capacity Building for Staff and Board Members 39

Notes 44

Chapter 5 Creating a Competition Culture 47

Introduction 47

Challenges 47

Collaboration with Regulators 48

Notes 50

Appendix A RAS Experts 53

Appendix B RAS Deliverables 57

Bibliography 85


ES.1 Application of RAS Results XX

1.1 Restrictiveness of Product Market Regulations in Romania 2

3.1 Basic IT Principles 27

4.1 Proposed Step-by-step Methodology to Calculate Fines 36

4.2 Snapshot of Selected Capacity Building Workshops 42

5.1 Snapshot of Competition Advocacy Events 48


B1.1.1 Product Market Regulation: Romania Compared with EU Countries 2

Bl.1.2 PMR for State Control of Economic Activity, EU Countries 3

Bl.1.3 PMR for Government Involvement in Infrastructure, EU Countries 3

Bl.1.4 PMR for Barriers to Trade and Investment, EU Countries 4

Bl.1.5 PMR for Barriers to FD1, EU Countries 4

1.1 Typology of Competition Rules in the EU 6

1.2 Implementing the Competition Policy Framework 8

3.1 RCC Activities 22

4.1 Dynamic Process of State Aid Assessment and Evaluation 39

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