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Report on Structural Separation

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    Abstract

    The Structural Separation Report was prepared by the OECD Competition Committee to review the implementation of the 2001 OECD Council Recommendation concerning structural separation in regulated industries. The report shows that many countries have implemented legislation that seeks to promote non-discriminatory access to noncompetitive infrastructure. In a number of jurisdictions, there is dissatisfaction with the access provided by integrated companies to their non competitive infrastructure, leading a number of jurisdictions to strengthen the barriers that separate noncompetitive and competitive parts of a company. One new approach seeks to create managerial incentives that are equivalent to those that would be faced by managers in fully structurally separated companies while maintaining unified ownership of noncompetitive and competitive lines of business. This approach can be termed functional separation and has recently been pursued in the telecommunications sector in at least two jurisdictions. The results of implementing functional separation will be of considerable importance for future policy decisions related to structural separation. The OECD Council endorsed the report’s conclusion relating to maintaining the Recommendation in its current form and invited the Competition Committee to report back in three years’ time on the implementation of the Recommendation.

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    File URL: http://dx.doi.org/10.1787/clp-v8-art2-en
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    Bibliographic Info

    Article provided by OECD Publishing in its journal OECD Journal: Competition Law and Policy.

    Volume (Year): 8 (2006)
    Issue (Month): 2 ()
    Pages: 7-65

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    Handle: RePEc:oec:dafkaa:5l9hvjgn1cr4

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    Cited by:
    1. Kievani, Ramin & Tah, Joseph H.M & Kurul, Esra & Habanda, Henry, 2010. "Green jobs creation through sustainable refurbishment in the developing countries," ILO Working Papers 457681, International Labour Organization.
    2. Susan V. Scott & M. Zachariadis, 2010. "A historical analysis of core financial services infrastructure: Society for Worldwide Interbank Financial Telecommunications (SWIFT)," LSE Research Online Documents on Economics 33886, London School of Economics and Political Science, LSE Library.
    3. Kayande, U. & de Bruyn, A. & Lilien, G.L. & Rangaswamy, A. & van Bruggen, G.H., 2006. "How Feedback Can Improve Managerial Evaluations of Model-based Marketing Decision Support Systems," ERIM Report Series Research in Management ERS-2006-039-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.

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