Competition policy and environmental protection, obstacles to competition in the waste sector

This study deals with the legal rules that affect the conditions of competition in the waste sector at both the EU level and national level in Finland. This study describes further, on a more general level, the relation between the EC's internal market rules and competition rules and the actions involving environmental protection taken by public authorities (EG, Member States) and enterprises. Hazardous waste is not studied in this report. The study comprises two parts: The first part deals with the free movement of waste, EG rules on the transportation of waste between Member States, and the specific EG rules and Finnish laws and regulations on waste. The aim of this study has been, on the one hand, to discuss cases where restrictions of competition in the waste sector are a direct consequence of EG rules on waste and, on the other hand, situations where EG rules or the large margin of manoeuvre left with the Member States create problems with a view to a well functioning competition at the national level. Part two deals with the application of EG rules and Finnish competition rules to companies' agreements on actions involving environmental protection and especially waste management, and to their operations in general and, in certain cases, also to the measures taken by Member States. The EG rules on waste do not pay enough attention to competition aspects. The different requirements set by Member States result in distortion of competition while the rules governing the shipments of waste are not effective enough. From the internal market point of view, more binding and detailed rules are motivated. Competition rules are fully applicable to enterprises' measures aimed at environmental protection that restrict competition. Environmental protection aspects in connection with a case-to-case consideration of interests is, however, gaining importance. Those restrictions of competition in the waste sector that EC has dealt with have without exception concerned the functioning of recycling channels for packaging waste. In those few cases of application that have been up in Finland, restrictions of competition have often been considered to be consequences of those special rules on waste that prevail over the provisions of the Act on competition restrictions, why there has been only little room left for an independent application of competition rules. (orig.)