The Independence of Regulatory Authorities as a Guarantee of Compliance with the Principle of Fair Competition

Abstract

The article concerns the question of the independence of regulatory authorities against the principle of fair competition in the social market economy, in which the concept of the state as the sole sovereign in the sphere of the economy, who centrally manages business processes, is rejected. In a democratic state of law, activities of national regulatory authorities are coherently coupled with the duty of compliance and implementation by those authorities of fundamental principles relating to freedom of economic activity. These rules oblige the authorities to behaviors which are a sign of respect for the fundamental rights of economic operators. It must be remembered that such rules should include fair competition. The Member States of the European Union are required to guarantee the independence of national regulatory authorities that should be legally separate from any other public or private entity. In turn, the independence contributes to the development of the economy of the country concerned and market efficiency. In the countries of the European Union, the legislators should introduce juridical mechanisms concerning greater transparency in the activities of national regulatory authorities that eliminate the conflict of interest which jeopardizes the independence. Only an independent body can guarantee the said—fair competition.