Sector‐specific regulation in European electronic communications – meant to disappear?

Abstract

PurposeThis paper aims to question the disappearance of sector‐specific regulation in European electronic communications markets.Design/methodology/approachTo show that sector‐specific regulation will remain, five arguments are developed based on different disciplines: law, economics, political science and sociology.FindingsIt is found that sector‐specific regulation has already been in place for 15 years and there is no concrete indication that it will end soon. Competition law has intrinsic limitations, which, arguably, do not make it possible for authorities to resort only to that body of the law to ensure a smooth functioning of the electronic communications markets. The balance of power in the EU leads to sector‐specific regulation being maintained in the years ahead as the ideal way for European institutions to intervene in electronic communications markets. The electronic communications market requires regulation going beyond competition law in order to ensure the realization of non‐economic purposes. The implementation of sector‐specific regulation might contribute to concentrating the electronic communications markets.Practical implicationsContrary to the claims of the European institutions that sector‐specific regulation in the electronic communication markets will lose its relevance, this paper argues that it is likely to remain for the foreseeable future.Originality/valueThe paper shows that deregulating a sector is not an easy task and that ex ante regulation is a key legal instrument for the proper functioning of a market.