In accordance with the European Union’s rules on electronic communications stated in the regulatory framework implemented by the Electronic Communications Act, NMHH acts as the regulatory authority of the market of electronic communications. The objective of the market analysis procedure is to ensure that ex ante regulatory interventions in market processes (i.e. interventions not triggered by breaches of the law) are preceded by appropriately defined procedures that include all the necessary analyses and consultations.

The market analysis procedure falls under the competence of the President of NMHH, comprises several interconnected phases and is an official administrative procedure in which the President has wide discretion. The Electronic Communications Act stipulates for the official market analysis procedure certain special procedural rules, which are based on the European Union regulatory framework. The President is expected to conduct regular market analysis procedures at least once every 3 years; if, however, the NMHH is informed of a circumstance it considers significant for evaluating the competition on a relevant market, the President may launch an unscheduled market analysis procedure on the relevant market(s) with immediate effect.

By analyzing and evaluating the data supplied to the President in market analysis reports and other information (thus especially statistical and market survey data as well as facts officially known to NMHH) and also taking into account Commission Recommendation of 9 October 2014 on the relevant product and service markets within the electronic communications sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services (2014/710/EU), the President identifies the markets of electronic communications services where particular characteristics justify sector-specific regulation, analyzes the competition existing on such markets and also examines the competitive situation on the relevant market of services.

If the market analysis reveals that competition on a market is not efficient enough, the President identifies the significant market power (SMP) operators on the particular market and imposes on the SMP operator or operators at least one asymmetrical obligation that is justified by, and proportionate to, the identified obstacles to competition, or maintains or amends the obligations imposed on the operators in the past.

Beyond the decision support activities necessary for a comprehensive examination of the facts, the President is also responsible for discussing the draft decision made as a result of the market analysis procedure with the stakeholders and with the European Commission as well, given the forward looking nature and the competition impacts of such market analysis decisions.