Memorandum on improving competitive neutrality sent out for comments

The Finnish Government aims to improve fair market competition. With this in mind, the Ministry of Economic Affairs and Employment is now requesting comments on a memorandum assessing the reform of competitive neutrality regulation. After reviewing the comments received, the Government will decide whether any legislative amendments are needed.

Prime Minister Orpo’s Government aims to improve the preconditions for fair competition in Finland. This includes strengthening and ensuring competitive neutrality, that is fair competition, between public and private enterprise. The Finnish Competition and Consumer Authority (FCCA) oversees the realisation of competitive neutrality. 

The Government Programme states that the Government will strengthen the supervision of competitive neutrality carried out by the Finnish Competition and Consumer Authority and improve the possibilities to supervise activities that restrict competition in the public sector. 

Memorandum discusses report recommendations

The Ministry of Economic Affairs and Employment is now requesting comments on a memorandum that assesses recommendations for reforming competitive neutrality. The recommendations are based on a report by Professor Kirsi-Maria Halonen, according to which the public sector does not comply with competitive neutrality regulation as well as it should. The report presents 11 recommendations, focusing in particular on the clarity of neutrality regulation and the effectiveness of its implementation. 

Public bodies must already assess their activities to ensure compliance with competitive neutrality regulation. The recommendations assessed in the memorandum propose, among other things, that public bodies should also document their assessments. This would make the process of examining competitive neutrality cases more effective and improve the provision of advice by the FCCA. Public bodies refer to the central government, municipalities, joint municipal authorities, wellbeing services counties and joint county authorities for wellbeing services. In addition to public bodies, the provisions of the Competition Act on neutrality apply to the units under their control. 

The recommendations also propose a new prioritisation criterion so that the FCCA could target supervision more effectively at cases that are most relevant in terms of neutrality. It is also proposed that a definition of activities in a competitive market environment and a requirement concerning market-based pricing be added to the Competition Act. The aim would be to clarify the regulation related to competitive neutrality.

Comments should be submitted by 14 November

The memorandum, prepared by public officials as part of their official duties, is circulated for comments between 6 October and 14 November 2025. The Ministry of Economic Affairs and Employment will hold a consultation event on the memorandum on 22 October 2025.

Following the public consultation round, the Government will decide which changes enhancing competitive neutrality will be put forward in the form of a government proposal. 

Inquiries:
Iiro Ihanamäki, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 217
Virve Haapajärvi, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 027
Olli Hyvärinen, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 026