Waste electrical and electronic equipment reform consultation: business and regulatory impact assessment - partial

5.0 Competition Assessment

82. This section assesses the potential impacts of the preferred option on competition among producers, wholesalers, retailers and importers in the Scottish market.

83. The assessment will follow the Competition and Market Authority guidelines^[62][63] which outline how to determine any competition impact. These guidelines recommend considering four key questions in order to assess whether a proposed policy would have an impact on competition. These are set out below, with answers based on the best evidence available to us at this point. As the policies are developed in more detail the analysis will be updated.

84. The preferred option is not likely to impact on intra-UK trade as the measure is UK-wide.

85. The preferred option is not likely to impact on international trade and investment.

86. The preferred option is not likely to impact on the Scottish government’s policy to maintain alignment, where possible, with the EU.

Will the measure directly or indirectly limit the number or range of suppliers?

No direct impact anticipated on the number and range of suppliers.

We will keep under consideration the potential for the increased obligations on producers and distributors to have an indirect impact on the number and range of suppliers. The costs posed by EPR are generally in proportion to the scale of the business and therefore should be appropriate to each supplier’s ability to bear.

Will the measure limit the ability of suppliers to compete?

The policy will include incentives for designing products that have a longer life, are easier to repair and reuse, and contain more recycled material. This is especially the case if fee modulation is introduced. The potential to influence suppliers’ decisions on how they compete in the market will be kept in mind, but this is considered an overall positive effect. Costs should, on the whole, be in proportion to the scale of the business and therefore their ability to absorb them.

An important aim of the policy is to reduce free-riding and create a more level playing field, especially between online-only businesses and physical retailers. This is expected to be beneficial from a competition perspective.

Will the measure limit suppliers’ incentives to compete vigorously?

No.

Will the measure limit the choices and information available to consumers?

No. Part of the aim of the policy is to improve consumers’ understanding about how to dispose of WEEE responsibly. This is considered a positive effect.