Moldova is a small country that started its way to a market economy about 25 years ago. The country’s competition environment is determined by its being drawn from a past with a planned economy, and the fact that it is a small economy. It has all the characteristics specific to low-income countries. The economies of new and small countries have emerging markets with small dimensions, monopolies, dominance of markets influence, high entry barriers , etc. The small internal market generates the amplification of several shortcomings in the competition area, especially if the small country comes from the break-up of a totalitarian state, such as the Soviet Union.
Achieving a dominant position in a small market is easier, especially if the dominant position in the sector is inherited from the previous economic system. The exercise of the dominant position, and the authorities’ justification of the dominant position (including dominant structures) may hinder the development of a competitive culture. The monopolistic market structure – such as that for electricity, gas and water distribution, and fixed telephony – is maintained because of the relatively high expenses, which do not allow the establishment of new units on the market. For new supplier to enter the market, it would have to create its own service delivery infrastructure. Hence it is complicated – impossible, even – for the service to be delivered by several entities due to high barriers to entry on the market, as well as natural barriers already formed on the market by services or goods. It is difficult to enter an existing market when the relationships are already formed between players.
In addition, in a small market, bulk-buying from a small number of suppliers limits the number of players on this market. Also, barriers to entry on the market may be artificially created by the government. In many cases, entry is limited to an area in which competition would be possible but would reduce the added value which is attributed to the companies. In this case, the nature or procedure of service licensing may limit the number of players on the market, as happens in the operation of pharmaceutical services.
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Astăzi, 30 noiembrie 2017, împreună cu membrii Proiectului Uniunii Europene „Suport pentru Consiliul Concurenței” și în cooperare cu Camera de Comerț și Industrie am organizat o nouă ediție Competition CaFE. Am dedicate acest evenimnt promovării cu…