Regulation: in general

Market functioning

Since a number of years, the European Union has been pursuing a policy of liberalisation to create more market functioning in some sectors. The purpose of this is to have lower prices and better quality for the concerned (end) users.

 Deficiencies of the market

The market does not always function as it should. This is, among other things, caused by

• the presence of a natural monopoly in the sector;
• the presence of a legal monopoly in the sector;
• the presence of a dominant market actor (so-called ‘incumbent’).

 Regulation of the market

Regulation is a tool to adjust the market. The goal is to prevent or to compensate for the detrimental effects of a lack of competition. In some cases the market chooses for a model of auto-regulation, but most of the time it is the government that is imposing and exercising a form of regulation.

Regulation in the transport sector

The sectors of rail transport and airports are typical examples of network industries showing a monopolistic nature.

	As infrastructure manager, Infrabel has a natural and legal monopoly of the Belgian railway network. For more information on regulation of railway transport CLICK HERE.
	As former state monopolist (‘incumbent’), the NMBS is a railway undertaking that is still a dominant market actor. For more information on regulation of railway transport CLICK HERE.
	As provider of airport services, Brussels Airport has a natural monopoly in the region. For more information on regulation of the airport Brussels Airport CLICK HERE.