International comparison of sectoral consumer protection (No. 504) © Photo Credit: peopleimages.com – stock.adobe.com

International comparison of sectoral consumer protection (No. 504)

Comparison tools in the telecommunications and energy sector

In Germany and many other European countries there are a large number of comparison tools, especially in the telecoms and energy sectors. However, only a few comparison tools meet the criteria of a neutral platform. There is therefore a fundamental need for action.

Comparison tools for telecoms and energy products are essential for consumers and businesses to make informed choices about their telecoms and energy services. That is why the European Telecoms and Energy Directives require consumers to have access to at least one independent comparison tool. These can be run by public bodies (e.g. public authorities) or private providers. For private providers of comparison tools, the sector-specific regulatory frameworks for telecoms and energy provide for the possibility of certification.

The aim of the study is to gather experience with the implementation of comparison tools in the telecommunications and energy sectors in various European countries in order to derive lessons for Germany. The focus of the study is on the motivation of countries and sectors to opt for a public or certified comparison tool.

In both sectors, most countries have opted for a public comparison tool. The main advantage for regulators is the guarantee of independence and the resulting higher level of consumer acceptance. A disadvantage is the high cost involved and the resources required by the authority. The introduction of a certification scheme is associated with lower costs and resources. A challenge is that so far only a few private providers of comparison tools have seen an incentive to be certified by the competent authority. This is due less to the costs than to the requirements to be met.

As part of its 2019 sector enquiry, the German Federal Cartel Office found that although Germany has a large number of comparison tools, only a few of them fulfil the criteria of a neutral platform. There is therefore a fundamental need for action.