Reforming the UK packaging producer responsibility system: Partial Business and Regulatory Impact Assessment (BRIA)
A partial Business and Regulatory Impact Assessment (BRIA) for
proposed secondary legislation which forms part of the introduction of
extended producer responsibility (EPR) for packaging.
6.0 Competition Assessment
74. This section helps to consider the impact of a regulation or policy on competition between producers, wholesalers, retailers and importers in the Scottish Market. The assessment will follow the Competition and Market Authority guidelines, which outline how to determine any competition impact.  These guidelines recommend considering four key questions in order to assess whether a proposed policy would have an impact on competition.
75. A first assessment was carried out in Table 22 below, but the final assessment will be informed by information gathered through the further consultation with businesses referred to above.
Table 2. Competition Assessment Questions.
Will the measure directly or indirectly limit the number or range of suppliers?
Will the measure limit the ability of suppliers to compete?
The fees to be paid under packaging EPR will be set UK-wide by the scheme administrator and will be set based on specific packaging formats. Producers may then make the decision to switch material and/or improve recyclability.
The policy is intended to incentivise producers (and other market actors), through modulated fees, towards the use of packaging formats that are more compatible with circular-economy outcomes. The impact of this on producers' ability to compete will be investigated once more details about the system for fee modulation are known.
The requirements to collect and report data and pay full net cost are tiered based on turnover and tonnage of packaging handled, as set out in section 4. That means that a business's obligations are directly linked to its size and contribution to the volume of packaging that must be managed at end of life. We consider that to be a proportionate intervention which will not limit competition.
Will the measure limit suppliers' incentives to compete vigorously?
Will the measure limit the choices and information available to consumers?
No. On the contrary, one component of the reformed packaging EPR system is better consumer communication and mandatory recyclability labelling to provide a clear and concise message to the disposer. This is expected to benefit consumers in that they will be better informed on what packaging is recyclable, potentially influencing buying decisions and improving recycling rates.
There is a problem
Thanks for your feedback