According to Enn Robert Kinnas, analyst in the Data and Economic Analysis Team of the Competition Authority, the purpose of the analysis was to provide a comprehensive overview of the functioning of the public charging infrastructure market in Estonia and identify bottlenecks affecting effective and fair competition. ‘The Competition Authority considers it important to prevent potential market issues, to support fair competition and ensure the sustainable development of the charging infrastructure market,’ said Kinnas.
According to international studies, the public charging infrastructure market for light-duty vehicles is still in the development phase in Estonia. The competition is low and there are limited charging opportunities in low-density areas. The analysis revealed that market activity is primarily concentrated in major cities and densely populated areas due to the calculated and optimised business decisions of market participants. The Competition Authority sees a risk that, as the public charging infrastructure market develops, competition and charging opportunities in rural areas may remain limited due to high investment risks creating barriers to entry.
The analysis of the Competition Authority showed that there is a struggle for market position, with undertakings competing for the best partners and registered immovables to secure their position in anticipation of future growth in demand. ‘Our analysis revealed potential activities restricting competition, but current business practices do not warrant immediate intervention. We are considering further follow-up activities related to the results of the analysis, with more precise decisions to be made after consulting with market participants,’ said Kinnas.
The Authority considers that, with the significant development and expansion of the charging infrastructure market, competition issues and barriers to market entry that have already emerged or been deliberately created during the market opening phase may become more apparent. Since the activities and reach of the undertakings are still relatively local, there is little contact or conflict between them, which means many problems may go unnoticed or overlooked by market participants.
The struggle for position and the competitive situation must not become market-restrictive, such as through exclusivity agreements or other restrictions that limit choices for competitors and consumers. It is important to raise awareness among market participants and related markets to help undertakings recognise and avoid practices that restrict competition. The Authority’s analysis is a preventive measure designed to raise awareness and create favourable conditions for market development, ensuring its sustainable growth.
The Authority will continue to monitor the electric vehicle charging infrastructure market and assess sector developments, considering its strategic importance in the long term. ‘In light of the analysis results, we will reach out to market participants and present them with recommendations to improve the competitive situation, along with proposals from the Authority,’ said Kinnas.
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.