Session 4.Promotion of Competition.

Independent Market Players.

FEDERAL COMPETITION AUTHORITY

Austria

Birgit Schwabl-Drobir

Austrian Federal Competition Authority p. 2 / 11

FEDERAL COMPETITION AUTHORITY

Promotion of Competition (1)

• Rise transparency to foster competition:

Input of the Federal Competiton Authority:

- Periodical newsletter regarding the developments in the fuel market

- Various investigations on specific topics in that market:

intrastate price differentials; the formation of prices; market entries; consequences of weekdays, public holidays and vacations on the fuel prices; effect of recommended prices on prices in reality; development

of margins at fuel stations (differentiated between highway and non-highway stations); etc.

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• Rise transparency to foster competition:

Input of the Ministry of Economics:

- Regulation concerning the time of fuel price increases:price increases are only allowed once a day at 12 p.m., decreases are always permitted

- Electronic calculator of cheapest fuel prices nearby available in the Net:

price increases have to be reported immediately, price decreases within 30 minutes by every operator of a gas station

(implemented in August 2011)

FEDERAL COMPETITION AUTHORITY

Promotion of Competition (2)

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• Screenshot of the calculator:

insert locationselect type

of fuel

FEDERAL COMPETITION AUTHORITY

Promotion of Competition (3)

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• Screenshot of the calculator:

prices of the 5 cheapest stations

distance (air line)

10 nearest gas stations

FEDERAL COMPETITION AUTHORITY

Promotion of Competition (4)

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• In Austria, fuel prices are below the European average:

FEDERAL COMPETITION AUTHORITY

Prospects for Independent Players (1)

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• In Austria, fuel prices are below the European average:

FEDERAL COMPETITION AUTHORITY

Prospects for Independent Players (2)

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• The number of gas stations is decreasing:

FEDERAL COMPETITION AUTHORITY

Prospects for Independent Players (3)

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• Nevertheless, there are prospects for independent players:

An example from Austria:

- As of 2009 a market entrant opens up gas station machines on parking areas of a discount store, no service but low prices

- Incumbents nearby undercut prices to push the newcomer out of the market

- With requests for information the Competition Authority controlled for a consistent proceeding with antitrust law

- By now the newcomer is active in the market and responsible for a lower fuel price level in the provinces in question

FEDERAL COMPETITION AUTHORITY

Prospects for Independent Players (4)

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• Periodical monitoring (via newsletter) and case-related monitoring(via investigations) mainly by means of:

- Daily fuel prices from ~ 1.800 (~ 66%) gas stations provided by thedrivers association

- Price data of all 2.700 gas stations located in Austria as a result of the electronic calculator (time series from August 2011 onwards)

New possibilities for analysis due to these data!

FEDERAL COMPETITION AUTHORITY

Monitoring Independent Market Participants.

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Thank you for your attention!

Birgit Schwabl-DrobirAustrian Federal Competition AuthorityPraterstraße 311020 ViennaAustria

birgit.schwabl-drobir@bwb.gv.at +43 1 24508 315

FEDERAL COMPETITION AUTHORITY