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Series title and number of the publication<br />

Aleksanterinkatu 4 P.O. Box 32 Tel. +358 9 16001<br />

MTI Financed studies<br />

FIN-00170 Helsinki<br />

FINLAND<br />

FIN-00023 GOVERNMENT<br />

Helsinki FINLAND<br />

Telefax +358 9 1606 3666<br />

5/2006<br />

Authors<br />

Tom Björkroth & Aki Koponen / Turku School of<br />

Economics and Business Administration;<br />

Business Research and Development Centre<br />

Date<br />

October 2006<br />

Commissioned by<br />

Ministry of Trade and Industry<br />

Date of appointment<br />

Title<br />

A competition impact analysis of legislative proposals<br />

Abstract<br />

The Nordic Countries have succeeded in creating a relatively good and stable business environment.<br />

However, the OECD has criticized Finland for insufficient use of impact assessment in preparations of<br />

legislative proposals. For instance, the development of consistent and flexible methods of analysis and<br />

integration of impact assessment to policy processes require special attention.<br />

This report reviews the competition impact analyses of legislative proposals, the role of impact analysis<br />

and also the timing of the analysis in the legislative work. By combining the recent results from competition<br />

research, international experiences and examples of impact assessment, this report provides an alternative<br />

approach to rise to this challenge.<br />

On the whole, simultaneously with the purpose of easy-access and ease of use, we have tried to ascertain<br />

that the methodology is closely linked to the main themes and principles of economics and especially<br />

competition research. Success in this endeavor yields a methodology which will ensure time-sparing and<br />

simple impact analysis of sufficiently good quality. The approach utilizes the current practices and experiences<br />

of impact assessments, but it has also introduced the role of firm-specific competitive advantages in<br />

the analysis, especially in the directions of interpretation.<br />

In this approach, impact assessment is structured by seven questions. The approach enables conditional<br />

argumentation and the analyst is also able to lay more stress on certain questions in the final assessment -<br />

the key point is the well documented analysis. In this way we can avoid the problems related to simple<br />

“rules of thumb”. That is, since simple decision-making rules can ignore even some extremely substantial<br />

impacts on competition, careful analysis and argumentation yields more diverse and wider view on the<br />

real competitive impacts of a legislative proposal.<br />

MTI contacts: Trade Department/Ulla Karhu, tel. +358 (9) 1606 3547<br />

Key words<br />

Competition, impact assessment, legislation, competition analysis<br />

ISSN<br />

1459-9384<br />

Pages<br />

127<br />

Published by<br />

Ministry of Trade and Industry<br />

Language<br />

Finnish<br />

ISBN<br />

952-489-024-0<br />

Price<br />

20 €<br />

Sold by<br />

Edita Publishing Ltd

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