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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.

Suggested Citation

  • Oecd, 2006. "Report on Structural Separation," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 8(2), pages 7-65.
    • Handle: RePEc:oec:dafkaa:5l9hvjgn1cr4
    DOI: 10.1787/clp-v8-art2-en
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    Cited by:

    1. Alessandro Avenali & Giorgio Matteucci & Pierfrancesco Reverberi, 2010. "How does vertical industry structure affect investment in infrastructure quality?," DIS Technical Reports 2010-08, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    2. Scott, Susan V. & Zachariadis, M., 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 University Rotterdam.
    4. Coublucq Daniel & Ivaldi Marc & McCullough Gerard, 2018. "The Static-Dynamic Efficiency Trade-off in the US Rail Freight Industry: Assessment of an Open Access Policy," Review of Network Economics, De Gruyter, vol. 17(4), pages 267-301, December.
    5. Arata Kamino & Hidenori Fuke, 2010. "Diffusion of Broadband Internet and Structural Separation," Chapters, in: Anastassios Gentzoglanis & Anders Henten (ed.), Regulation and the Evolution of the Global Telecommunications Industry, chapter 10, Edward Elgar Publishing.
    6. Mohammad Alomari & David. M. Power & Nongnuch Tantisantiwong, 2018. "Determinants of equity return correlations: a case study of the Amman Stock Exchange," Review of Quantitative Finance and Accounting, Springer, vol. 50(1), pages 33-66, January.
    7. Heatley, David, 2009. "The History and Future of Rail in New Zealand," Working Paper Series 4031, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    8. Peter Curwen & Jason Whalley, 2010. "Implementing Functional Separation in Fixed Telecommunications Markets: The UK Experience," Chapters, in: Anastassios Gentzoglanis & Anders Henten (ed.), Regulation and the Evolution of the Global Telecommunications Industry, chapter 11, Edward Elgar Publishing.
    9. Kievani, Ramin. & Tah, Joseph H.M. & Kurul, Esra. & Habanda, Henry., 2010. "Green jobs creation through sustainable refurbishment in the developing countries," ILO Working Papers 994576813402676, International Labour Organization.
    10. repec:ilo:ilowps:457681 is not listed on IDEAS
    11. Howell, Bronwyn, 2009. "Separating New Zealand's Incumbent Provider: A Political Economy Analysis," Working Paper Series 4028, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    12. Ben Dkhil, Inès, 2014. "Investment in Fixed Broadband Networks and Access Regulation in Developed and Developing countries: Panel Data Applications," MPRA Paper 59337, University Library of Munich, Germany.
    13. Howell, Bronwyn & Meade, Richard & O'Connor, Seini, 2010. "Structural separation versus vertical integration: Lessons for telecommunications from electricity reforms," Telecommunications Policy, Elsevier, vol. 34(7), pages 392-403, August.

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