Market analyses and special regulation

Market definition, market analyses and special regulation

The regulatory framework for electronic communications markets, which is essentially laid down in five Directives and became legally binding for the European Economic Area (EEA) in 2004, was implemented in Liechtenstein by the adoption of the Law of 17 March 2006 on Electronic Communications (Communications Act; in German) and the related Ordinances.

These provide that if and as long as there is no effective competition, the regulator takes measures to eliminate or reduce the negative consequences of the lack of competition.

To this end, the Office for Communications defines relevant communications markets based on subject matter and geography. According to the EFTA Surveillance Authority's market recommendation, the starting point for this market determination is a forward-looking definition of the retail markets, taking into account substitutability on the demand and supply side over a certain period of time. Following the definition of retail markets, relevant wholesale markets are defined.

In a second step, the conditions of competition in the defined markets are reviewed. The aim of this market analysis is to determine whether the preconditions pursuant to Art. 22 of the Communications Act for the abolition, retention, amendment or imposition of special regulation measures are met with regard to relevant markets.

If the market analysis determines that a company has significant market power – for example, if there is no competition at all or too little competition in individual markets – specific special regulation obligations must be imposed on the company in order to eliminate or at least reduce the negative consequences of the lack of competition for providers and users.

Specific obligations may include, but are not limited to, the following competition promoting measures: non-discrimination, transparency, accounting separation, access provision to network facilities and network functions, charge control, and access cost calculation.