REGULATION AND COMPETITION IN INFRASTRUCTURE SECTORS: Proposal of parameters to predict regulatory gaps and suggestions to prevent them from harming the market
Infrastructure; gaps; regulation; antitrust; positive regulation.
This study analyzes situations in infrastructure sectors in which the market and society were harmed, resulting from the existence of regulatory gaps. These gaps occur when the regulator should act but does not – or does so in an inefficient and untimely manner. From the study of three cases from the civil aviation, electric energy, and rail freight transport sectors, we sought to define characteristics that demonstrate the likely existence of a regulatory gap, requiring regulatory action. Four initial characteristics were identified, namely: (a) occurrence in infrastructure sectors; (b) existence of essential facilities; (c) markets in which two regulatory 2 agencies need to work together; and (d) existence of agents that urge for a structure that allows greater efficiency in providing the service. To solve these problems in a more structural way, there was a need to seek the best regulatory theory to be applied in these scenarios. Although the theory most used by Brazilian regulators is responsive regulation, it was recommended that the use of positive regulation theory would be more appropriate to solve problems arising from the existence of regulatory gaps. The latter gives the regulator the necessary mechanisms to avoid the perpetuation of regulatory gaps, based on its objective of promoting market competitiveness and its methodology, which involves the definition of clear objectives and the alignment of expectations with those regulated, to encourage them to comply with the regulatory proposal.