According to Kristin Truus, lawyer in the Administrative Proceedings of Competition Team at the Competition Authority, there are three recovery organisations for packaging without deposit currently operating in Estonia, but no new recovery organisations have entered the market in the last decade. ‘Such a situation raises questions about the functioning of competition and potential barriers to entry,’ said Truus.
In addition, a waste reform led by the Ministry of Climate is currently underway and includes amendments to the Packaging Act and a partial restructuring of the packaging collection system. As a result of the analysis, it will be possible to identify potential competition issues in the sector and, within the framework of the waste reform, support the development of an efficient packaging waste collection system while also ensuring fair market competition.
According to the principle of extended producer responsibility, packaging producers are responsible for and bear the costs of collecting and handling packaging and packaging waste. However, packaging producers can transfer these obligations to a recovery organisation holding an activity licence, which will then manage the collection, transport and recovery of packaging (waste) on behalf of the producer. In co-operation with local governments, recovery organisations manage and organise, among other things, the public packaging collection network and, with the agreement of the local government, also the collection of packaging waste at source.
One of the objectives of the Competition Authority for 2025 is to investigate the competitive situation in the field of collection and recovery of packaging without deposit and packaging waste in Estonia. The final report of the analysis is expected to be completed in the second quarter of 2025.
The Competition Authority exercises state supervision over competition, electricity, natural gas, district heating, postal services, public water supply and sewerage, as well as railways, aviation and ports, and the fight against unfair trading practices in the agricultural and food supply chain. The Authority is within the area of government of the Ministry of Justice and Digital Affairs.