Draft law amending the Competition Act (654 SE) – first reading
Session: 15th Riigikogu, 6th sitting, plenary session
Date: 2025-09-10 22:36
Participating Politicians:
Total Speeches: 35
Membership: 15
Agenda Duration: 16m
AI Summaries: 35/35 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The fourth agenda item concerns the draft Act amending the Competition Act, initiated by the Government of the Republic, number 654 – this is the first reading. The draft incorporates the European Union regulation concerning subsidies from third countries and establishes the Competition Authority as the contact point for Estonia in cooperation with the European Commission. The regulation is directly applicable, therefore the draft does not include a separate national transposition, but stipulates that the Competition Authority will be the contact point for the European Commission on the Estonian side. The aim is to ensure fair competition in the market and offer the best services and goods to consumers, and to prevent the impact of subsidies from third countries on the competitive situation of Estonian companies.
Decisions Made 1
The first reading is to be completed and the draft presented to the plenary session's agenda on September 10, 2025; the deadline for submitting amendments is set at September 24, 5:15 PM.
Most Active Speaker
The most active participant stands out as Aivar Kokk (pid VTIO4yVEz1k). He acted clearly as the main questioner and a participant involved in the discussion; regarding political position, we note: the position is other (as he presented proposals and questions, not a striving to describe a definitive role).
Esimees Lauri Hussar
AI Summary
The Riigikogu is discussing Draft Act 654 on supplementing the Competition Act as part of the first reading, listed as the fourth item on the agenda. The rapporteur will be the Minister of Justice and Digital Affairs, Liisa-Ly Pakosta.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the fourth item on the agenda was the first reading of Draft Bill 654, initiated by the Government of the Republic, concerning the supplementation of the Competition Act, and invited Minister of Justice and Digital Affairs Liisa-Ly Pakosta to the Riigikogu rostrum to give the presentation.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Minister of Justice and Digital Affairs Liisa-Ly Pakosta introduced a brief draft bill, the primary objective of which is to ensure fair competition in the internal market. This is achieved by designating the Competition Authority as the contact point and competent authority for the European Commission. The Authority will be responsible for controlling foreign subsidies that distort the European Union's internal market, thereby protecting local companies from subsidized offers originating in third countries.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
This draft bill is genuinely very short, consisting of a single provision, and adopts the European Union regulation concerning foreign subsidies, the purpose of which is to ensure fair competition in the market. The Competition Authority will serve as the contact point with the European Commission.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the Minister, announces that there are questions, and invites Peeter Ernits to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits reluctantly acknowledges that the directly applicable regulation must be adopted immediately and without amendments, but expresses deep skepticism, questioning what is driving the sudden urgency of this short draft (is it China?) and how we have managed without it until now.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits criticizes the immediately effective, directly applicable regulation and asks about the reasons behind it—whether it's due to China or something else—and how we have managed without it until now.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Estonia drafted this regulation itself, and it is our regulation. The main issues addressed were defining the contact point and expanding the jurisdiction of the Competition Authority, measures which Estonian businesses have supported.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Minister of Justice and Digital Affairs Liisa-Ly Pakosta rejects the assertion that Estonia did not actively participate in the drafting of the regulation in question, stressing that it is a directly applicable EU legal act that we contributed to. Consequently, the draft bill is brief; its sole objective is, with the support of Estonian businesses, to designate the Competition Authority as the contact point and expand the necessary competence for this purpose, given that national transposition is not required for a directly applicable regulation.
Esimees Lauri Hussar
AI Summary
The speech is an expression of gratitude and a request to give the floor to Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk voices strong doubts about the need for the Competition Authority's new mandate and its associated cost. He brings up recent price hikes by Elering and Elektrilevi, asking how much this new power of the Competition Authority will actually end up costing us, and what portion of the profit is paid back to the state as dividends.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk questions the competence of the Competition Authority, citing as an example the price increases of Elering and Elektrilevi—which the authority approved despite the companies recording large profits—and asks the minister how much it will cost the state to establish new jurisdiction for the authority in a sector they have not previously handled.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The EU Foreign Subsidies Regulation (FSR) mandates a Member State contact point, and the Competition Authority will not conduct investigations independently but will instead provide assistance. The regulation applies to foreign aid starting from 50 million, and although the workload might increase in the event of larger subsidies, this is unlikely.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Minister of Justice and Digital Affairs Liisa-Ly Pakosta reassured the public that the Competition Authority's role in implementing the foreign subsidies regulation is limited solely to providing assistance to the European Commission in investigations concerning aid exceeding 50 million euros. She also deemed it improbable that this would significantly increase the daily workload in Estonia, given that, based on centuries of historical data, foreign aid of such a large scale is not typically directed towards Estonian companies.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks if the Competition Authority only monitors Estonian companies, and whether foreign firms, along with the services they provide for public procurements and the associated support measures, are subject to the same rules elsewhere, such as on the Rail Baltica project.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk wants to know whether the Competition Authority's jurisdiction extends only to overseeing Estonian companies, or if the agency must also investigate foreign firms participating in Estonian public procurements that may potentially be receiving foreign state subsidies, citing the Rail Baltic and Tallinn-Helsinki tunnel projects as examples.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The European Union's single market allows a Portuguese company to operate in Estonia just as an Estonian-capital-based company would. Furthermore, if the European Commission launches an investigation, it clarifies what assistance member states require in that specific case, which could mean that the Estonian Competition Authority has to find answers when an Estonian firm conducts business in Portugal.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Minister of Justice and Digital Affairs Liisa-Ly Pakosta emphasizes that due to the European Union’s single internal market, Portuguese and Estonian companies have equal rights to operate in each other’s territory. Consequently, investigations initiated by the European Commission are cross-border and require the assistance of member states (such as the Estonian Competition Authority), depending on the specific circumstances.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker/the audience] and asks Priit Sibul for something.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul is addressing the minister to seek clarification on the exact costs and workload for the Competition Authority stemming from the new, additional task that businesses have been anticipating.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul is asking what the exact costs and workload of the Competition Authority are in relation to the additional task that Estonian companies have been expecting.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
We have taken into account that the Competition Authority's budget will not change under this draft bill—it will neither decrease nor increase. Furthermore, although there was a theoretical possibility of building an underwater tunnel using Chinese subsidies, this has not materialized, and the current draft bill does not generate any actual workload.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Minister of Justice and Digital Affairs Liisa-Ly Pakosta explained that this draft bill will not result in either a budget change or a massive increase in workload for the Competition Authority, as the theoretical threat of building an underwater tunnel using Chinese subsidies, for instance, has not materialized in reality.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the Minister, thereby concluding the round of questions, and invited Marek Reinaas, the Chairman of the Economic Affairs Committee, to the Riigikogu podium so that he could introduce the discussion that had taken place within the committee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the minister, confirms that the questioning has concluded, and asks Marek Reinaas to present, here at the Riigikogu podium, the discussion that took place in the Economic Affairs Committee.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Economic Affairs Committee discussed the preparation for the first reading of Bill 654, initiated by the Government of the Republic, concerning the amendment of the Competition Act, and unanimously decided to place the bill on the plenary session agenda on September 10, 2025, and conclude the first reading.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas reported on the June 16 session of the Economic Affairs Committee, where preparations were made for the first reading of Bill 654 SE, initiated by the Government of the Republic, concerning technical amendments to the Competition Act regarding foreign subsidies that distort the internal market. Although Minister Liisa-Ly Pakosta and Kärt Nemvalts confirmed that due to the high thresholds set by the regulation, such cases are extremely rare or entirely absent in Estonia, it was consensually decided to place the bill on the plenary session agenda for September 10, 2025, and conclude the first reading.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar said that you have at least one question, and asked Peeter Ernits to ask it.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and announced that the time for questions had arrived, subsequently giving the floor to Peeter Ernits so that he could pose his question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits expressed satisfaction with the clear presentation delivered in Estonian, but posed two questions: firstly, who exactly drafted the regulation—was it an Estonian ministry, or was it an initiative at the European Union level—and secondly, whether this situation is not rather theoretical, drawing a parallel with the former Piirissaare sailor's draft bill, which lacked practical relevance.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits presented two small questions: first, why this was done and who did it—whether it was him, the Ministry of Digital Affairs, or the whole of Europe—and second, regarding the Piirissaar sailor draft bill, which concerns the potential service of a foreign sailor on Piirissaar, and which he considers rather theoretical, since we lack that kind of reach.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas explains that since the European Union regulation concerning foreign subsidies is directly applicable, the Competition Authority (Konkurentsiamet) is designated by the current draft bill as the contact point for its implementation in Estonia. The Authority will assist the European Commission in gathering information if the latter suspects that foreign subsidies are impacting concentrations or public procurements.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The European Commission has adopted a regulation, and a contact point—namely, the Competition Authority—will be established for its implementation. The Commission can address this body if it is discovered that foreign subsidies have influenced procurements (for example, the Tallinn–Helsinki tunnel).
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the first reading of Bill 654 has been concluded and set the deadline for submitting amendments as September 24th of this year at 5:15 PM.