Report on the BEREC public consultation on document “Guidance on the regulatory accounting approach to the economic replicability test (i.e. ex-ante/sector specific margin squeeze tests)
In 2013 the Commission adopted Recommendation 2013/466/EU on consistent non-discrimination obligations and costing methodologies to promote competition and enhance the broadband investment environment. The Recommendation requires NRAs, among others, to put in place obligations to ensure economic replicability of retail offers of undertakings with significant market power (SMP) and therefore preventing them from engaging in margin squeeze practices. In order to provide the NRAs with information on how to conduct the economic replicability test and more generally ex-ante margin squeeze tests in practice BEREC decided to develop a Guidance document, which was published for a public consultation. The consultation ran from 29 September to 24 October 2014, with an oral hearing on 16 October 2014 during the 2nd BEREC Stakeholder Forum meeting.
During the consultation BEREC received 11 contributions, which were examined and reflected in the revised Guidance paper where appropriate. All individual contributions have been published on the BEREC website subject to any confidentially requirements introduced by the contributors.
An overview of the contributions received and explanation how they were reflected in the revised Guidance is presented in the Report provided below.
The final text of the Guidance as amended after the public consultation and approved by BEREC during the 21st plenary meeting of the Board of Regulators (Brussels, 5-6 December 2014) can be consulted here.