Competition aspects of waste collection and recycling

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Arguments can be made that there are likely to be restraints of competition within DSD. If companies fulfil the take-back obligations on their own, then no competition issues arise. However, DSD was introduced to help realise some element of cost reduction - i.e. through economies of scale. As such, most firms use the system, and this is likely to have implications for the degree of competition. By its very nature, it introduces an element of co-operative behaviour between certain firms. Moreover, it may be controlled by small number of firms. It can represent a monopoly for recycling, with no incentive to minimise collection costs or organise in an efficient manner (OECD, 1996).

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