OECD Competition Week: AMCU joins roundtable on "Competition and Regulation in the Provision of Local Transportation Services"

Competition in the public transport market, determination of the best pro-competitive models of organization of passenger transportation services, issues of competition, elimination of barriers to market entry, development of mobility services, and alternative types of public transport. Representatives of international competition agencies discussed these issues on June 20 during a thematic roundtable conducted in the framework of the Organization for Economic Cooperation and Development (OECD) Competition Week, which started in Paris. The Antimonopoly Committee of Ukraine was represented at the event by the Chair of the AMCU Olha Pishchanska and the State Commissioner of the AMCU Serhii Shershun.

Addressing the Ukrainian delegation, the conference moderator, Alberto Heimler, Chair of the Working Group on Competition and Regulation of the Competition Committee of the OECD, noted the importance of continuation of AMCUs work even in current difficult circumstances:

“Special people are usually hardened in very difficult circumstances. Like Nobel Laureate in Economics Maurice Allais. He wrote a book on economic discipline in 1941 during the Nazi occupation of Paris…We must try to continue living and working even in difficult conditions. Congratulations on doing this and being able to join us” - said Alberto Heimler.

In his turn, Serhii Shershun, on behalf of the AMCU, thanked the OECD for its significant support and expressed hope for further cooperation, especially given the need to implement best practices during the restoration of Ukraine.

Answering the moderator's question about the special features of the organization of transportation in Ukraine, Serhii Shershun commented on the practice of extending contracts with carriers for an additional five-year period without a tender. We will remind you that it is possible, in particular, on the condition of the acquisition of new rolling stock:

“On the one hand, this rule improves the quality of transportation for passengers, because it allows carriers to develop a fleet and guarantees a return on investment. On the other hand, it creates competitive barriers for new players to enter the market. It is necessary to study this issue for the possibility of improving this provision, or the introduction of new quality criteria, based on which it would be possible to extend the contract” - said Serhii Shershun.

Summing up the results of the discussion, the Chair of the AMCU Olha Pishchanska noted that the Government is currently developing a new model of public transport organization and the main idea is to maximize access to the transportation market in order to create favorable conditions for competition.

“As a result of the war, these markets have undergone significant changes. In some cases, public transport has become an unalterable way to travel (given the fuel shortage in Ukraine). The AMCU constantly monitors the situation so that changes in the markets do not violate the requirements of competition law. And in our opinion, the trend towards deregulation will have positive consequences for the formation of a new model of public transport in Ukraine - with more intensive involvement of private business in passenger transportation, including - to raise environmental standards” - said Olha Pishchanska.

We would like to note that the OECD Competition Week started on June 20 in Paris and will last until June 24. As part of the event, the Ukrainian delegation`s agenda includes a number of presentations, speeches and working meetings with foreign colleagues and representatives of international organizations.