The European Commission draws up Relevant Market Recommendations for all of the member states. They set out all of the communications markets which the Commission deems eligible for ex ante regulation. A recommendation determines to a large extent which markets OPTA will investigate for the purposes of its market analyses. All of these analyses are conducted in identical steps. Where necessary, they ultimately culminate in the regulation of the relevant markets: the imposition of remedies on market parties that have significant market power.
The Telecommunications Act stipulates that OPTA is required to revise its market analyses within three years. The first round of market analyses was conducted in 2004 and 2005. Consequently, the initial regulatory period ran from 2006 until and including 2008. OPTA carried out a second round of market analyses in 2008. Its decisions therefore apply in relation to the period from 2009 until and including 2011.
Research
OPTA constantly monitors developments in the various markets as part of its ongoing Market Monitor. The relevant figures may serve as the basis for its market analyses. A great deal of external research is also conducted in order to obtain (and to maintain) a proper understanding of the markets.
Market analyses
- OPTA determines the scope of a relevant market. This is referred to as defining a market. It conducts research to establish precisely which services compete with each other and whether the relevant market is national, regional or even local. During this stage OPTA sends questionnaires to the relevant market parties.
- OPTA examines whether a provider holding significant market power (SMP) is active in the market. A party holding SMP may inhibit the further development of competition or could erode existing competition.
- If a party does indeed have significant market power, OPTA investigates what actual or potential problems could be affecting competition. It then determines what remedies would be appropriate to eliminate those problems and promote competition. In the course of its investigations OPTA involves the Netherlands Competition Authority (NMa), which provides it with advice.
- OPTA publishes its preliminary draft decisions for consultation
ConsultationIn a consultation document OPTA sets out its opinion, any decision that it is planning to make, or any issues which are current in relation to important telecommunications or postal matters. The parties affected are afforded the opportunity to respond in writing. A hearing is also always held, in which the various market parties can express their views in person. In response to a consultation OPTA may draft policy rules, for example. In them it explains how it will act as the case may be and how it will interpret specific provisions of the law.
in the market.
- The national consultations last six weeks. Market parties may respond in writing to the proposed regulations. In addition, OPTA organises a hearing during which the various parties may request an explanation in person.
- OPTA studies all of the opinions which it receives from market parties and other stakeholders. It then considers whether any part of its draft decision needs to be amended.
- The European Commission and the regulatory authorities in the other member states are notified of the amended draft decision over the course of a month. They may submit questions and comments to OPTA, which the latter will deal with during that month.
- The draft decision stage is completed, as soon as the Commission consents to the decision. OPTA then publishes the final version of that decision.
- As of that point in time the relevant market parties are required to comply with the new regulations. OPTA commences its regulatory work to monitor the parties. In some cases, if there is a need to regulate matters in greater detail, OPTA will draft an implementation decision. It is in this way that OPTA produces clearly defined, detailed regulations.