How European competition policy reform can strengthen Ukraine

Competition policy (Chapter 8 of the EU acquis) is one of the key areas that determine the maturity level of a candidate country’s economy. It covers antitrust regulation, merger control, state aid rules and the protection of fair competition.

The European Union operates on the principle that without a level playing field for business, neither a single market nor fair competition between companies can exist.

At the heart of adapting Chapter 8 is Regulation (EU) No. 1/2003, whose main goal is to establish a decentralised and efficient antitrust enforcement system within the EU.

Read about how the merger control system works in the EU and which changes Ukraine still needs to implement in the article by Anastasiia Kropova of the Institute for Economic Research and Policy Consulting: Competition like in the EU: what changes in antitrust law Ukraine needs to implement.

Regulation (EU) No. 1/2003 has been in force in the EU since 1 May 2004. Before its adoption, companies had to obtain prior approval from the European Commission for coordinated actions, but the new model eliminated this bureaucratic procedure. Businesses were given the responsibility to independently assess the legality of their agreements (self-assessment).

Now, state control is exercised after the agreement is made (ex post).

Overall, the Regulation significantly expanded the toolkit of antitrust authorities.

An important innovation was the creation of the European Competition Network (ECN), which brought together national authorities and the European Commission.

Since then, cartel investigations and cases of abuse in cross-border matters are conducted jointly.

For Ukraine, this Regulation serves as a benchmark for reforming both legislation and the judicial-institutional system. Its adaptation means creating a predictable environment where fair business is protected, and violators face tangible sanctions.

Ukraine has already taken several important steps toward European standards, amending the law "On Protection of Economic Competition".

However, despite this progress, a number of systemic problems remain, the resolution of which also requires deep judicial and institutional reform.

This approach, based on combining legislative changes with real institutional strengthening, has long been successfully applied in EU countries.

Implementing Regulation No. 1/2003 could bring tangible economic and social benefits to Ukraine. Estimates suggest it could generate annual consumer savings of 0.6–1% of GDP, equivalent to approximately €1.1–1.8 billion. This estimate is based on the experience of EU countries after implementing the Regulation and assumes a similar positive effect for Ukraine.

Positive effects are expected in: energy (reduction of tariff surcharges and increased competition among suppliers); pharmaceuticals (more transparent tenders and access to cheaper medicines); agriculture (expanded opportunities for farmers); as well as transport and logistics (lower entry barriers and cost optimisation).

Combating cartels will also save public funds during the implementation of large infrastructure projects.

Additionally, institutional and social benefits are expected.

Thus, competition policy reform is not only a legal requirement of the EU but also a practical necessity for the Ukrainian economy. Implementing the Regulation can enhance the efficiency of the Antimonopoly Committee of Ukraine (AMCU), reduce legal uncertainty and create a predictable business environment.