Friday, July 12, 2013
Conciliating Public-Private Partnerships in Broadband Network Infrastructures and Competition Policy Requirements
Posted by D. Daniel Sokol
Fred Marty (Universite Nice Sophia Antipolis, GREDEG CNRS) has a new paper on public private partnerships and competition law (in French), for which the English translation is Conciliating Public-Private Partnerships in Broadband Network Infrastructures and Competition Policy Requirements.
ABSTRACT: An optimal level of investment in broadband network infrastructures cannot be reached only though market’s incentives. If Public-Private Partnerships might be needed to overcome such market failures, they might nevertheless induce two kinds of competition concerns. First, the private contractor will benefit from a monopoly power, as the network is an essential facility. Second, the contract might imply some public grants or other forms of financial support, which would induce some competition distortions. This paper aims at analyzing how the European Commission deals with such concerns in the framework of the mandatory examination of state aids projects. We highlight its criteria to accept such projects and its requirements in terms of third parties access to conciliate the need for government involvement and an undistorted competition.