RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE | Page 24

of outlets where those products can be sold and other conditions, such as hours, age of a buyer, or
substances and their doses.
3. Sales promotions
The analysis focuses on national regulations limiting retailers' freedom to advertise or announce sales
promotions and discounts as part of their operations in the following categories:
• restrictions on end-of-season sales;
• restrictions on discounts (outside fixed end-of-season sales periods);
• restrictions on end-of-business sales; and
• restrictions on sales below cost (excluding competition rules on predatory pricing).
4. Retail-specific taxes and fees
Apart from general taxes, retailers in some countries have to pay specific taxes and fees, which are required
only for retailers. These retail taxes can be levied based on:
• size of the selling space;
• turnover;
• a combination of selling space and turnover.
A few countries also have levies or fees linked to retail authorisations (beyond covering its cost).
Corporation tax, business rates (or similar taxes) and social security contributions paid by employers are
not specific to the retail sector and, therefore, are excluded from the analysis.
5. Restrictions on sourcing
In the EU, product sourcing within and throughout the European single market enables retailers to benefit
from lower prices and provide them with access to a variety of products available across Europe. In turn,
this can result in a wider choice and lower prices for consumers. However, especially in non-EU states,
there are national regulations and private barriers, which limit retailers’ possibilities for sourcing products
cross border. The indicator takes into account the regulatory limitations only.
COMPETITION SUB-PILLAR
1. Geographical expansion restrictions
Depending on the strictness of state’s antitrust laws, the geographic expansion freedom may be restricted
for the companies, which are considered “dominant”.
2. Market share restrictions
The analysis focuses on the “dominance” concept in different countries. Local antitrust laws can consider
a company dominant when it reaches a particular market share barrier. Still, the conception of dominance
differs between countries. Most of them monitor the companies occupying a dominant market position,
but some do not do that or, vice versa, impose restrictions. The indicator takes into account both factors.
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