Liberalization of sector-specific markets has been and is extremely important issue what has impact on every citizen’s activities in the European Union. The EU Member States decided to open these markets to competition. This book should help to understand possibilities of economic policy to regulate sector-specific markets. It gives a theoretical overview about state regulation and competition policy comparing these two institutional devices. The analysis presented here tries to find answer to the question, what type of institutional and organizational arrangement is suitable for regulating network industries in small EU Member States – in the Baltic Countries. The book should be valuable for practitioners, academics and everyone who has particular interest in the topic.