The competition assessment of laws and regulations helps governments to identify regulatory barriers to competition and to develop alternative, more pro-competitive measures that still achieve government policy objectives, such as supporting the green transition.
The OECD Recommendation on Competition Assessment calls for governments to introduce an appropriate process for the competition assessment of existing or proposed public policies. The OECD Competition Assessment Toolkit is a methodology that public officials can use to review laws and regulations through a competition lens.
In performing competition assessment, governments should give particular attention to policies that limit:
- The number or range of market participants;
- The actions that market participants can take;
- The incentives of market participants to behave in a competitive manner;
- The choices and information available to consumers.