Commission for Protection of Competition continuous ex officio to pursue investigation of concentration initiated on the basis of notification of the company ”Industry of Milk and Dairy Products Imlek” a.d. from Padinska Skela.

Concentration is notified for the acquisition of 100% of share in the company ”Nis Dairy” d.o.o.by the company ”Imlek”.

After having examined submitted documents, and based on all the facts arising from the content of the notification, Commission has found that by implementation of notified concentration, company ”Imlek” would strenghten its position in the market for purchase of raw cow’s milk, production and sales of milk and dairy products, since companies ”Imlek” and ”Nis Dairy” are direct competitors, and that the company ”Imlek” is the strongest participant in the relevant market.

The Commission shall, therefore, in investigation procedure, additionally evaluate all the statutory criteria in order to determine permissibility of concentration, and not only the structure of relevant markets and the position of parties to concentration on them. Commission shall specifically investigate whether a notified concentration fulfills the conditions of permissibility prescribed in Article 19 of the Law on Protection of Competition, or whether the implementation of concentration significantly restricts, distorts or prevents competition in the market of the Republic of Serbia or a part thereof.

The representative of the Commission for Protection of Competition participated in the meeting in Istanbul, organized by ICN Unilateral Conduct Working Group which deals with unilateral conduct of market participants, and in cooperation with Turkish competition authority, as co-organizer.

The two-day meeting included lectures, panel discussions as well as practical work on hypothetical case on the subject: ”Refusal to deal and assessment of unilateral conduct of market participants.”

The workshop was attended by representatives of competition authorities from countries with different level of development of competition law and practical experience, which certainly did not prove to be a hindrance to free exchange of ideas and experiences while working on a hypothetical case. This once again demonstrated that the presence at such meetings is of great importance, especially for countries that do not have a long tradition of competition protection, which is a case of Serbia.

The gathering was attended by about 100 representatives from more than 40 different countries.

Representative of the Commission for Protection of Competition, Mr. Srdjan Jankovic participated as one of the speakers at the seminar ”How to apply amendments and modifications to the Law on Public Procurements and the Law on Protection of Competition in public procurements procedures”, along with representatives of the Republic Commission for the Protection of Rights in Public Procurements Procedures and law office ”Jankovic, Popovic, Mitic”.

The seminar discussed the implementation of the amendments to the Law on Public Procurements; cooperation between Republic Commission for the Protection of Rights in Public Procurements Procedures and Commission for Protection of Competition in detecting bid rigging in public procurements, as well as the application of competition rules to joint participation in public procurements procedures.

The seminar was an opportunity to promote competition law and improve dialogue between Commission for Protection of Competition and market participants, as well as Republic Commission for the Protection of Rights in Public Procurements Procedures.

The seminar was organised by ”Top-Tier Legal Adriatic” (TLA) a regional network of legal experts, together with the French-Serbian Chamber of Commerce, Italian-Serbian Chamber of Commerce, German-Serbian Business Association, Slovenian Business Club, the trade department of the Embassy of Austria and as a coordinator, law firm ”Jankovic, Popovic, Mitic”.

The seminar was attended by more than 70 participants, which is another indicator of the need for constant training and exchange of experience between independent authorities, market participants amd experts.

The Supreme Court of Cassation’s judgement of 26.10.2015 dismissed the request for review of judgement of Administrative Court, submitted by PUC ”Funeral Services” Belgrade, by which the Supreme Court of Cassation upheld the judgement of Administrative Court, and therefore the legality of decision of Commission for Protection of Competition on abuse of dominant position by PUC ”Funeral Services” Belgrade.

Commission’s decision on abuse of dominant position by PUC ”Funeral Services” Belgrade of 27.11.2014 was confirmed by the judgement of Administrative Court of 07.05.2015. In executing the remedy for protection of competition determined by the decision of the Commission, this public company paid to the budget of the Republic of Serbia the amount of 19.253.088,00 dinars. In addition, on the basis of enforcement of Commission’s decision, the price list of other services of PUC ”Funeral Services” Belgrade was changed, i.e. Belgrade citizens were given a significant reduction in the amount of compensation which they, as users of grave places, pay to this company to set up monument over burial place.

This is another in a series of decisions of the Commission confirmed by the court of last resort, which is an additional incentive toCommission to intensify its struggle and commitment to ensuring free and fair competition in the market of the Republic of Serbia, with respect to all market participants, including public enterprises, with the aim of economic progress, welfare of society and benefit for consumers, as declared goals of the Law on Protection of Competition.

Commission for Protection of Competition sent a letter to the Ministry of Construction, Transport and Infrastructure, expressing its position on the particular provisions of the Draft Law on Amendments to the Law on Public Utilities.

Commission stressed the importance of providing equal conditions for all participants in the market of utilities, and in this context drew attention to negative effects of the creation of a legal monopoly.

Commission for Protection of Competition expressed concern that the Ministry opted for solutions that will further limit the potential for competition in the market of public utilities.

Commission notes that only through competition among competitors with quality and price, economic progress and well-being of society, especially the benefit of consumers, can be achieved.

Commission for Protection of Competition has initiated procedure ex officio against companies Philip Morris Operations a.d. Niš, Philip Moriss Services d.o.o., Belgrade, JT International a.d. Senta, British American Tobacco a.d., British American Tobacco South East Europe d.o.o. Belgrade, IMPERIAL TOBACCO SCG d.o.o., Belgrade, TDR d.o.o., Belgrade and MONUS d.o.o. Belgrade (Zemun), due to a reasonable assumption that as market participants in Serbia they consorted their practice, with regard to pricing of their products.

Commission reasonably assumed that these companies concluded a restrictive agreement under Article 10 of the Law on Protection of Competition, in the form of consorted practice on introduction of change and the amount of change in price, including the time as of which their decision to change the price, becomes legaly bound.

It should be noted that the Commission, under this procedure, carried out dawn raid on November 30, 2015, of companies Philip Moriss Services d.o.o., Belgrade and British American Tobacco East Europe d.o.o., Belgrade.

Commission invites all persons who have data, documents or other relevant information which may contribute to determining the factual situation in this procedure, to submit them at Savska 25, Belgrade.

Commission for Protection of Competition conducted, on November 30, 2015 dawn raids of the premises of the companies Philip Morris Services d.o.o. and British American Tobacco South East Europe d.o.o., due to a reasonable assumption that an infringement of competition was made.

The Commission has also initiated procedures ex officio, against these companies on suspicion that, as market participants, they have consorted their practices regarding pricing of their products.

By conducting dawn raid, authorized officials of the Commission carried out sudden inspection of premises, i.e. data, documents and things of which the party or the holder of premises and things have been notified on the spot, at the time of conducting the inspection.This instrument is extremely effective for detection of cartel agreements and other forms of infringement of competition. During dawn raids, Commission had full cooperation of the parties to procedure.

At present, Commission is not able to provide more information, in the interest of further procedure.

Commission for Protection of Competition, following the completion of procedure for investigation of infringement of competition initiated ex officion on July 25, 2013 against companies ”Amm Immovables” d.o.o., Beograd, ”Beteco”, for production, trade amd services d.o.o. Belgrade (Zemun), ”Sagoja” d.o.o. for production, trade and services Belgrade (Zemun) and ”Advena line” d.o.o. Belgrade, passed a decision establishing the existence of competition infringement pursuant to Article 10 of the Law on Protection of Competition.

These companies have concluded a restrictive agreement by which they pre-arranged individual participation, and by making direct arrangement on prices and other commercial conditions in public procurement of goods – uniforms, shoes and other equipment for the needs of the Ministry of Defence of the Republic of Serbia in 2013, they infringed competition.

By the decision issued by Commission for Protection of Competition on November 10, 2015, a measure for protection of competition was imposed to these companies in the form of fine in the following amounts:

- company ”Amm Immovables” d.o.o. Beograd, in the amount of 5.1% of the total annual turnover generated in 2012, i.e. in the amount of 15.633.030,00 dinars
- company ”Beteco” d.o.o. Beograd, in the amount of 5.85% of the total annual turnover generated in 2012, i.e. in the amount of 11.194.970,00 dinars
- company ”Sagoja” d.o.o. Beograd, in the amount of 5.1% of the total annual turnover generated in 2012, i.e. in the amount of 7.003.473,00 dinars

In addition, these companies were imposed a measure prohibiting them from participating in the process of public procurement as bidders, for a period of 18 months, starting from the date of the final decision.

By the resolution of the Commission of April 10, 2014, the procedure relating to ”Advena line” d.o.o. Beograd has been suspened, since it submitted the decision of the Business Registers Agency of February 24, 2014 on its removal from the Registrar of Business Entities.

The complete text of the decision is published on the Internet website of the Commission for Protection of Competition.

President of the Commission for Protection of Competition, Mr. Miloje Obradovic, Ph.D. with his associates, on November 24, 2015 met with representatives of the Faculty of Economics, University of Belgrade – Vice Dean Associate Professor Mr. Dragan Lončar, Ph.D. and Director of the Scientific Research Centre of the Faculty of Economics, Assistant Professor Mr. Dragan Stojkovic, Ph.D.

Topics discussed were the establishment of professional and educational cooperation between the two institutions in the field of competition policy, through organization of seminars, lectures delivered by visiting experts from Commission, conferences, joint study programs on competition policy, international projects, summer schools and the like.

It was also agreed to consider the idea to allow students of Faculty of Economics professional practice in Commission in order to acquire practical knowledge and skills in the field of competition law.

President of the Commission expressed his expectations that cooperation with the Faculty of Economics shall contribute to greater understanding of competition policy and that graduates shall possess necessary skills and knowledge for its implementation in the market.

The Supreme Court of Cassation, by its judgement of 09.10.2015, dismissed the request for review of judgment of the Administrative Court submitted by ”Imlek a.d. Beograd and a.d. ”Mlekara Subotica”, by which, finaly, the Supreme Court of Cassation also confirmed that the decision of the Commission for Protection of Competition on abuse of dominant position by these dairies in the market of purchase of raw milk intended for further industrial processing in dairies in the teritorry of the Republic of Serbia, was lawful.

For the first time in this case, Commission made its decision on 25.01.2008, however, four years later, after the annulment of several decisions, on 09.08.2012 it issued a decision in revised procedure, which the Administrative Court assessed as lawful by its ruling of 05.01.2015. The Supreme Court of Cassation upheld the legality of this ruling by its judgement, thus also confirming the decision of the Commission.

This judgement is important too from the perspective of transferring the legal frame to the level of individual cases, i.e. to situations of certain behavior of market participants, the conditions and consequences of such actions in a particular market environment, thus confirming the predictability of practice of Commission and courts and the legal certainty of participants in the procedures for protection of competition.