CC2025/01 Mahlalela, Q, Bleazard, T and Maseng, O. Institution-wide impact assessment methods

Leading competition authorities worldwide are increasingly allocating resources and efforts towards conducting institution-wide impact studies to assess the economic impact of competition enforcement. Studies of this nature aim to enhance impact reporting, transparency, accountability, and to inform policy refinements. The Commission can benefit from the experience of other jurisdictions to develop a methodology for conducting such studies. This paper provides an overview of the methods adopted by leading and growing competition agencies across the world, as well as best practice guidance from the OECD for impact measurement. The study finds that competition authorities employ generally accepted methods for measuring impact, including direct and indirect benefits. These include ex-ante estimation of consumer savings from interventions that prevent or stop price increases, where established methods and assumptions (including rules of thumb if industry or case-specific data is not available) are used to estimate the avoided price increases, the affected turnover, and the duration of impact. Indirect benefits such as deterrent effects, dynamic effects, and macroeconomic impacts are also estimated where information is available. The Commission can use these methodologies, along with existing public interest measurement, to build an institutional impact assessment annually.