Special Report 58
The Monopolies Commission has submitted a special report to the Federal Government on the unbundling plans put forward by Federal Minister for Economic Affairs Brüderle. In principle, the majority of the Monopolies Commission supports such a proposal. An ‘objective’ unbundling regime can help to initiate and sustain competitive processes in markets with entrenched, non-competitive structures. The existing instruments of competition law – merger control, antitrust supervision and the monitoring of abuse of a dominant position – are, however, not always sufficient to address structural restrictions on competition in a manner commensurate with their causes. It should, however, be noted that:
Greater consideration must be given to the negative knock-on effects of an unbundling regulation, in particular the loss of incentives for investment and innovation among the companies potentially affected. In the case of an unbundling regulation, greater emphasis must be placed on providing appropriate compensation for investment and innovation activities undertaken.
