The Effect of Public Funding On Competition
Public sector industries, or industries which are by their nature providing a public service, are involved in competition law in many ways similar to private companies. Under EC law, Articles 86 and 87 create exceptions for the assured achievement of public sector service provision. Many industries, such as railways, telecommunications, electricity, gas, water and media have their own independent sector regulators. These government agencies are charged with ensuring that private providers carry out certain public service duties in line of social welfare goals.
The EU liberalisation programme entails a broadening of sector regulation, and extending Competition law to previously state monopolised industries, such as railways, electricity or gas. Articles 106 to 108 of the TFEU address how public money can distort competition.
Read more about this topic: European Union Competition Law
Famous quotes containing the words effect, public and/or competition:
“Self-denial is not a virtue: it is only the effect of prudence on rascality.”
—George Bernard Shaw (1856–1950)
“For almost seventy years the life insurance industry has been a smug sacred cow feeding the public a steady line of sacred bull.”
—Ralph Nader (b. 1934)
“Knowledge in the form of an informational commodity indispensable to productive power is already, and will continue to be, a major—perhaps the major—stake in the worldwide competition for power. It is conceivable that the nation-states will one day fight for control of information, just as they battled in the past for control over territory, and afterwards for control over access to and exploitation of raw materials and cheap labor.”
—Jean François Lyotard (b. 1924)