Legal Challenges 5.4 Barriers to competition

One of the most notable functions designed to preserve and promote effective competition in all markets and productive sectors is the authority to bring legal actions under article 5.4 of Law 3/2013 of 4 June on creation of the National Commission on Markets and Competition.

This authority granted by article 5.4 allows the Council of the CNMC, upon proposal from the Department for Promotion of Competition, to challenge acts of the Public Administrations before the courts, as well as any general provisions ranking below the level of law when these produce obstacles in relation to effective competition in the markets.

Since this involves strictly advocacy, it is notable for being an ex-post instrument. At the same time, this is the primary coercive tool possessed by the CNMC when performing its function of promoting competition.

Its application is based on the principles of need and proportionality. It represents the final recourse available in situations that are especially serious in their impact on effective competition, where the CNMC believes that legal remedies are the necessary solution.

The CNMC is one of the first authorities in the world focused on competition and regulation and able to make use of this instrument.

The CNMC Strategic Plan establishes the power to bring legal actions against government entities as its Strategic Action #10. Furthermore, the 2015 CNMC Action Plan represents an effort to strengthen the effect of legal challenges before the courts through improved understanding of this process and increased public collaboration (Action 10.1 and Action 16.3).

 

Latest legal challenges under art. 5.4

All legal challenges under art. 5.4