The promotion of competitive neutrality by competition authorities

8 December 2021 Zoom

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THE 2021 OECD GLOBAL FORUM ON COMPETITION DISCUSSED THE PROMOTION OF COMPETITIVE NEUTRALITY BY COMPETITION AUTHORITIES

Significant market distortions may arise when some enterprises benefit from undue competitive advantages conferred by state actions, for example on the basis of their ownership, nationality or their activity in the market. These distortions can prevent competition from reaching its potential for economic growth, productivity and innovation.

In particular, they may discourage investment, create regulatory uncertainty, and encourage other jurisdictions to adopt similar distortions that undermine a global level playing field. Competition authorities have a role to play in promoting the application of competitive neutrality principles, including addressing distortions through their enforcement tools, and advocating for neutrality in state actions ranging from subsidies to procurement.

In December 2021, the Global Forum on Competition featured a roundtable discussion to introduce the concept of competitive neutrality, explored how authorities around the world have promoted competitive neutrality, and highlighted the recently-adopted OECD Recommendation of the Council on Competitive Neutrality.

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