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THE RELATIONSHIP BETWEEN COMPETITION AUTHORITIES AND SECTOR REGULATORS

With the advent of privatisation and major regulatory reforms introduced in the 1980s and 1990s in many countries around the world, the issue of sectoral regulation in its entirety has increased in significance. However, sectoral regulation has a particular resonance in respect of competition law and policy because the adoption of nongeneric competition regulatory instruments in some sectors has also become a common feature in many regulatory environments across the globe. The adoption of such measures – which, among other things, primarily necessitated the creation of special regulatory bodies and/or arming the relevant minister with sectoral regulatory powers – has been considered essential for the regulatory framework of these sectors for several reasons: their history of state control and planning; the existence of natural monopolies in these sectors; and the desire to move towards introducing and promoting competition. At the same time, this remarkable development has triggered some highly challenging questions, the most difficult of which perhaps concerns the relationship between competition authorities and sector regulators. This relationship has been the subject of controversy and heated debate in recent years; though this debate has not been settled and it does not look likely that it will in the foreseeable future: if anything, the debate seems only likely to intensify. The relationship carries fundamental