Balance of Competency between Competition Council and Regulatory in Telecom Industry (A Comparative Study of the Legal Systems in the United States and Iran)

Abstract

The telecommunications industry, after being liberalized and removed from state ownership, operates as a "multiple monopoly," whereby telecommunications services are typically provided to consumers by three or four operators. Due to this monopoly, the coordination of matters related to these operators, including tariff determination and license issuance, is the responsibility of the regulatory authority. One of the goals pursued by any regulatory body in the telecommunications industry is to maintain and enhance the competitive environment, which conflicts with the authority of the Competition Council as the general body responsible for competitive affairs. In the U.S. legal system, the Supreme Court has only allowed the enforcement of competition laws when they provide an advantage over regulatory rules, and it has also assumed that there is no advantage in enforcing competition laws. In Iranian law, the telecommunications regulator must always comply with the Competition Council while implementing its decisions and actions; however, regarding tariffs, only the approval of pricing guidelines falls under the Council's jurisdiction. According to the Administrative Justice Court, the determination of prices is the responsibility of the telecommunications regulator, and the Regulatory Authority must set tariffs in accordance with the pricing guidelines announced by the Competition Council.

Keywords

• conflict of competence
• competition council
• sector regulator
• telecommunications