Economic assessment of proposed SMP regulation of physical infrastructure and wholesale fibre broadband markets in Ireland

Situation

In January 2023, Irish telecoms regulator ComReg published draft market reviews concluding that Irish telecoms operator Eir had significant market power in the markets for physical infrastructure access (PIA) and wholesale local access (WLA) to fibre broadband. ComReg was proposing an array of remedies to address competition concerns. Eir tasked Copenhagen Economics with providing an economic assessment of ComReg’s market reviews.

Outcome

We focused on ComReg’s analyses related to market definition, market power, and proposed remedies. Examining the evidence, we found that ComReg’s analysis was flawed and that the evidence was not consistent with Eir holding significant market power on the markets defined by ComReg. ComReg had made errors in its application of the SSNIP test and had not sufficiently accounted for differences in competitive conditions between different parts of Ireland. Furthermore, ComReg had proposed remedies which were unnecessary and disproportionate to its competition concerns.

Our economic reports were submitted to ComReg and the European Commission as part of the regulatory process.

CE’s support was important in our discussions with ComReg and the European Commission. The reports that they put together were strong and compelling. Their expertise in telecoms markets shone through, and the collaboration was seamless.”

Eir