In response to the recent garbage crises, the Russian government has implemented a reform to normalize the municipal waste (MSW) industry. Further steps of the state in this direction should be associated with the formation of a long-term strategy based on the principles of sustainable development. We investigate how the development of competition affects the ability to achieve the set goals associated with the use of the most priority methods of MSW management. This study examines three approaches to modeling competition: direct competition, Demsetz competition, and Chamberlin's monopolistic competition. Based on the analysis results, we formulated recommendations aimed at developing competition in the MSW management industry.