Brussels 10 October 2014: Matthias Kurth, Executive Chairman of Cable Europe, has welcomed the adoption of a revised Recommendation on Relevant Markets, announced by Vice-President of the European Commission Neelie Kroes.
Said Kurth “This revision, the second since 2003, takes a fundamentally deregulatory approach in reducing the number of required markets from an initial 18 in 2003, to 7 in 2007, and now to 4. This is without a doubt a move in the right direction. The simultaneous growth in infrastructure competition, technological developments, new business models and the blurring of boundaries across different parts of the value chain mean that today’s telecommunications landscape is unrecognisable from that of eleven or even seven years ago”.
The recommendation triggers market analyses which are carried out by National Regulators. These in-depth analyses of the competitive dynamics of each market result in the identification of the dominant player, who then becomes subject to a range of regulatory remedies. To date, the majority of National Regulators have concluded that cable operators do not have such a dominant position in the market.
Said Kurth: “Going forward, the new recommendation and subsequent market analyses will allow regulators to take into account new competitive market forces such as OTT. Thus with the revision comes the acknowledgement that sectors such as cable, which operate in a highly competitive environment and are fully captured by the relevant regulatory frameworks, must not be stifled by prescriptive market regulation if they are to continue to invest and innovate. We welcome this positive move”.