Obstacles to competition also stem from restrictive regulations, which in several branches of activity harm the majority of consumers and workers. In the retail sector the average number of employees is about half the euro-area average. The degree of fragmentation impinges on efficiency; it slows the adoption of new technologies, which are an important source of productivity growth in the sector in other countries.
The reform law of 1998 liberalizing the establishment of small shops empowered the regional authorities to regulate the opening of larger outlets. Not all of the regions took this opportunity to liberalize. In the regions that applied the most restrictive standards this hindered productive efficiency and the spread of new technologies, to the detriment of consumers and even of employment growth in the sector.