Important step towards better functioning markets without unhealthy public competition
A public inquiry is proposing new legislation to tackle unfair competition from the public sector. Rules that can help create better functioning markets with clear rules that drive investment and innovation.
The whole of society benefits from markets with a good investment climate, clear rules and competition on equal terms that provide incentives for investment and innovation. The IT, telecom and tech industry is a pillar of Swedish growth and the Swedish digitalization policy emphasizes the importance of market-driven development where private investments are not crowded out by the public sector.
However, the reality faced by many tech companies often contrasts with national strategies and policies. Public actors in the state, regions and municipalities compete with private companies in all parts of the IT, telecom and tech industry ecosystem, from basic network infrastructure to IT operations and end-user applications. In many situations, unhealthy competition arises where the public operator acts on a different basis and where private companies are sometimes completely excluded from parts of the market.
Sweden has much to gain from better interaction between the public and private sectors
The report's proposal for new legislation on official sales activities is an important step towards creating better functioning markets by making it easier for companies to report anti-competitive official sales activities and at the same time giving the Competition Authority much more effective tools to pursue cases. Requirements for separate reporting, regular reviews of official sales activities and the possibility of penalties can also help to raise awareness and raise the issue of unfair competition to a strategic level within public organizations.
Sweden has much to gain from better interaction between the public and private sectors rather than the public sector competing with and excluding private actors who can contribute to the development of public activities and welfare. By driving digital development together with the market, the public sector can both ensure operations that benefit from the latest technology and at the same time contribute to a growing and competitive Swedish IT, telecom and tech industry.
TechSweden's call to the government is to move forward quickly with the proposals in the report to create better conditions for a competitive Sweden at the digital forefront.
Robert Liljeström
Industrial policy expert