Policy Brief on the question whether data traffic-intensive over-the-top (OTT) providers should contribute to the network expansion costs of telecommunications companies
Policy Brief | Issue 12 | May 12, 2023
The European Commission has launched a consultation on the question whether data traffic-intensive over-the-top (OTT) providers should contribute to the network expansion costs of telecommunications companies. In its policy brief „A contribution from data traffic-intensive over-the-top (OTT) providers to the costs of telecommunications network expansion should be rejected!“ published today, the Monopolies Commission takes a critical view. Currently, the Monopolies Commission does not consider a regulatory intervention to be justified that forces OTT providers to pay telecommunications companies:
- According to the current assessment of the Monopolies Commission, new conditions in peering and transit markets do not legitimize a contribution for network expansion costs, because it is not apparent that OTT providers exploit their increased bargaining power.
- There are no indications that a redistribution mechanism between OTT providers and telecommunications companies would improve the market situation. However, such intervention may cause distortions of competition.
- The financial resources for fixed and mobile network expansion are sufficient.
Policy Brief on the planned hospital reform
Policy Brief | Issue 11 | February 13, 2023
In its policy brief published today, "Adjusting flat rates for hospitals, ensuring the need for care, maintaining competition," the Monopolies Commission supports the introduction of flat rates for hospitals proposed by the Hospital Commission. At the same time, it makes a significant proposal for changes that would make it possible to achieve the goals of financially securing hospitals' need for care and maintaining quality competition. The Monopolies Commission specifically recommends the following to the Federal Government/Länder Group, which is currently discussing the implementation of the announced financing reform:
- tie the reserve budgets to structural differences in regional supply costs that cannot be influenced, and
- test the compensation factors empirically by an expert opinion.
Policy Brief on electricity markets
Policy Brief | Issue 10 | October 11, 2022
In its tenth policy brief, "Further Development of Electricity Markets, Designing a Price Cap in Conformity with Competition", the Monopolies Commission makes recommendations on the electricity price cap. The Monopolies Commission recommends that a response to price increases on the electricity market should be designed in a targeted manner and in line with the market:
- The electricity market design should be retained but further developed in the medium term.
- The cap for additional revenues (windfall profits) should - as far as possible - be carried out uniformly for conventional power generators, taking forward contracts into account.
- The top priority in providing relief to consumers must be to avoid weakening incentives to save energy. At the same time, the neediness of the households to be relieved should be taken into account.