Starting July 1, the Norwegian Competition Authority will implement a new and significant tool aimed at ensuring effective competition: the market research tool. This initiative has sparked concerns from lawyers Vilde Engan and Stein Ove Solberg from the law firm Arntzen de Besche, who worry that it may undermine the authority's independence.

In a response, Gjermund Nese, the acting director of the Competition Authority, and Line Djupvik Andersen, a legal advisor, emphasized that the authority operates independently, free from political directives in handling individual cases. This principle is rooted in both Norwegian administrative law and EEA law, and it fully applies to the use of the market research tool.

The market research tool is designed to address competition issues that do not stem from violations of prohibitory provisions in the competition law but could still harm competition. This concept is not unique to Norway; it has parallels in several European countries, including the United Kingdom, Germany, and Denmark. For instance, UK competition authorities have utilized this tool across various markets to impose measures on banks to facilitate customer comparisons of prices and quality.

Similar to the enforcement of prohibitory provisions in competition law, the authority can be requested to consider initiating a market investigation. However, the decision to commence such an investigation rests solely with the Competition Authority, which cannot be instructed by external parties.

If the authority determines that there is insufficient professional basis to initiate a market investigation, the case can be dismissed without further process. Ongoing investigations can also be terminated at any time if there is no longer a professional basis to continue.

The same principles apply to the authority's handling of other cases, which has historically been free from political pressure or influence in individual case processing. The use of the market research tool is thoroughly regulated by competition law, with decision-making authority residing with the Competition Authority. The law outlines specific requirements for the process leading to a decision, ensuring that market participants are involved and can provide input and documentation during both the pre-investigation and investigation phases.

In the UK, structural measures such as company breakups are rarely employed, and there is little reason to believe that the situation will be significantly different in Norway. In many cases, less intrusive measures, such as regulating market participants' behavior, may be sufficient to restore competition.

The market research tool is a professionally grounded and legally secure instrument that enhances the Competition Authority's ability to promote well-functioning markets. When used within clear legal frameworks, it will contribute to strengthening competition in markets that currently perform poorly, benefiting both consumers and businesses.