The Foreign Investors Council (FIC) in Serbia presented its traditional edition of the White Book 2017, an overview of the business environment in Serbia with concrete recommendations on how to improve it, as an additional contribution provided by foreign investors operating in Serbia.

This document establishes that this year as well, the Commission for Protection of Competition of the Republic of Serbia achieved a significant progress in its operating activities, and welcomes the announcements of further advancements of legislative framework, which will enable more efficient implementation of the competition policy in Serbia.

In accordance with the assessment of the Foreign Investors Council: “The scope of the Commission’s activities in the various fields of its competences, as well as its readiness to use complex mechanisms provided for by the Law, constitute a significant progress when compared to the previous period. Also, the Commission began implementing economic analyses in the proceedings of examining infringements of competition and complex mergers in order to prove a violation. This indicates that some improvement was made in the quality of the decision-making process of the Commission in proving particularly complex violations”.

The investors’ recommendation is that the Commission should continue with the enactment of by-laws defining certain categories core to the anti-trust framework in more detail, as well as to prepare clear guidelines and instructions containing the manner of implementation of certain provisions of the Law.

“In addition, compared to the previous years, the Commission clearly made a significant effort in developing competition advocacy. Specifically, it is now publishing its opinions and decisions, issuing notifications on its activities on its official website and organizing promotional activities more frequently. This positive development is important as it contributes to the overall improvement of the current legal framework and to the general public’s and media’s better understanding of competition rules and activities and the importance of the Commission’s role, thus simultaneously raising awareness about the need for and importance of competition rules in general” – the “White Book” specifies.

Representatives of the Commission for Protection of Competition attended the two-day workshop “Public procurements in the light of protecting competition and preventing corruption”, organized in Vrdnik from 6-7 November 2017 by the OSCE Mission to Serbia.

In addition to the Commission for Protection of Competition, the workshop was also attended by representatives of the Anti-Corruption Agency and the Republic Commission for Protection of Rights in Public Procurement Procedures.
The workshop topics for the first day covered the issues of related persons and data protection, conflict of interest, as well as legal protection. The Commission for Protection of Competition presented its role in the prevention of competition infringements in public procurements. During the second day, participants paid particular attention to the modalities for strengthening cooperation between institutions.

Pursuant to the Agreement on co-operation from November last year, signed by the Commission for Protection of Competition with the Anti-Corruption Agency and the Republic Commission for Protection of Rights in Public Procurement Procedures, and toward a new Law on Protection of Competition, participants identified the need for improvement of functioning, convergence of positions per matters of mutual interest, as well as joint participation in activities which facilitate affirmation of policies implemented by these authorities.

The Commission for Protection of Competition adjourned a proceeding instituted ex officio against Joint Stock Company “Serbian Railways” from Belgrade, following the company’s acting in accordance with all obligations set in the Conclusion on suspension of proceeding of January 19, 2016, wherewith has implemented measures for removal of competition infringement.

By fulfilling obligations in accordance with the said conclusion of the Commission, Joint Stock Company “Serbian Railways” also enabled access and use of rail infrastructure to other business entities interested in carrying out railway transport services that fulfil necessary preconditions, wherewith the effective competition on the relevant market of rail infrastructure management is established.

The Commission uses this opportunity as well to underline the importance of available set of legal instruments at the disposal that enable the Commission to implement effective protection of competition and to obligate undertakings to bring into accord their behaviors against the market economy principles in order to achieve economic prosperity and well-being of the society, and especially the benefit of consumers.

On October 23, 2017, Council of the Commission for Protection of Competition enacted a decision establishing that Inter Turs Plus d.o.o., as managing company of a sole bus station in Topola has abused its dominant market position.

The Commission established that company Inter Turs Plus abused its dominant position by imposing and charging unfairly high prices for bus station dispatch services (platform station services) in intercity traffic at the bus station in Topola.

The increase in costs of all carriers utilizing the bus station in Topola caused the passenger transportation price increase for particular routes traversing the bus station in Topola, and even cancelation of certain services. In such manner, negative effects of cost increase imposed on carriers have affected the passengers as end-users of transportation services, in a form of bus ticket price increase, along with the reduction of possibility to select departure times and carriers that operate using the bus station services in Topola.

This undertaking is imposed a measure for protection of competition in the amount of 232 thousand dinars, obligated to pay into the Budget account of the Republic of Serbia, as well as behavioral measures toward converging its operating activities with the Law.

The Commission for Protection of Competition and the Embassy of the Republic of Korea in Belgrade co-organized the Seminar “Knowledge-sharing seminar on Korean and Serbian competition law”.

The objective of this event was to enrich the current know-hows of not only employees, but other interested parties on good international practices of competition policy implementation.

Introductory presentations were given by President of the Commission for Protection of Competition Dr. Miloje Obradović, H.E. Yoo Dae Jong, Ambassador of the Republic of Korea to Serbia, and Radica Nusdorfer, Head of the Economic and European Integration Section at the EU Delegation to Serbia.

On the occasion, President Obradović pointed that joint dedication toward creating conditions for effective competition, as well as closeness and fellowship are bonding drivers between competition authorities of Korea and Serbia.

- We are aware of the need to intensify international co-operation, being that such co-operation, at the time when not only regional but international undertakings are present, is the key to success in our common struggle toward achieving equal market conditions for all, said Dr. Obradović.

H.E. Yoo Dae Jong emphasized that what the Republic of Korea wishes to share with Serbia, by organizing such seminars, is the notion that his country is the proof of accomplished strong economy not by coincidence, but as the result of good public policies and management, as well as work of efficient institutions.

- I believe that our experiences will prove useful in Serbia, and serve a function in the economic development and further EU integration efforts of Serbia, said H.E. Yoo.

Head of the Economic and European Integration Section at the EU Delegation to Serbia, Radica Nusdorfer said that Serbia has considerably advanced in the competition policy implementation domain, and that Serbian competition regulatory convergence with the European acquis is achieved to a great extent.

- Two EU technical assistance programs are implemented in Serbia thus far, while the third one is in preparation, aimed at advancing implementation of competition policy standards and regulations, said Nusdorfer.

Presentations were held by Director-General of the Korean state-funded trade and investment promotion agency KOTRA in Serbia Mr. Lee Sung-gi, in addition to Mr. An Byoung-gyu, representative of the Korean Fair Trade Commission at the Korean Embassy in Brussels, and Dr. Veljko Milutinović, member of the CPC Council.

Particular attention was placed on the implementation of leniency program in the Republic of Korea. The Republic of Korea is among most efficient countries in the competition policy implementation. In so doing, over 70 percent of terminated antitrust proceedings are conducted directly owing to the successfulness of leniency program, implemented on the part of competition authority of the Republic of Korea since 1997.

By means of conclusion enacted by the Commission President of October 10, 2017, proceeding is continued ex officio, instituted upon notification of concentration of company Compagnie des Levures Lesaffre S.A., France, created by acquisition of individual control over company Alltech RS Fermentaciona Industrija LLC Senta.

During the investigation procedure, the Commission will investigate as to whether concentration concerned fulfils the conditions of permissibility from Article 19 of the Law on Protection of Competition, or respectively on the possibility of significant restriction, distortion or prevention of competition on the market of the Republic of Serbia or its part by implementing the related concentration, and especially if such restriction, distortion or prevention would be the result of creating or strengthening of a dominant position.

The Commission will conduct all necessary activities, establish all facts and derive evidence necessary to define the relevant market(s), structure of the relevant market(s), degree of concentration on the relevant market(s), identification of actual and potential competitors, market position of participants in concentration, legal and other barriers to enter on the relevant markets, interests of consumers, etc.

The Commission calls upon all persons in possession of data, documentation or other information that might contribute to the accurate fact-finding in this proceeding to submit the said in the shortest possible time to the Commission to the address: 25/IV Savska St., Belgrade.

President of the Commission for Protection of Competition, Dr. Miloje Obradović held talks with the Head of the Negotiating Team for Accession of the Republic of Serbia to the EU, Dr. Tanja Miščević. The meeting was also attended by members of the Council, Marko Obradović and Dr. Veljko Milutinović.

Dr. Obradović introduced the guest with current activities and plans of the Commission directed toward advancing the competition policy, and particularly presented activities within the negotiation process for Chapter 8 – Competition policy. He pointed that the Commission has fully achieved its existing plans pertaining to the advancement of secondary legislation framework, in addition to extending the deadline for submission of comments and opinions to the Draft regulation on technology transfer agreements exempt from the prohibition, and Draft regulation on agreements between undertakings operating in the rail, road and inland waterways transport sector exempt from the prohibition, with the objective of enabling the most qualitative public hearing.
The Commission President also announced the possibility of establishing the regional Competition Policy Forum seated in Belgrade, supported by the European Bank for Reconstruction and Development (EBRD).

During the meeting, Dr. Miščević was particularly pointed out to activities related to the preparation of new competition policy regulatory framework. The working group established by the Ministry of Trade, Tourism and Telecommunications, and whose members are, inter alia, representatives of the Commission and professional associations from the business and civil sectors, aims that in an inclusive and transparent manner offer a new regulatory solution that will further develop mechanisms for effective operating activities of the Commission.

It is bilaterally concluded that is in the entire society’s interest for the Commission to dispose of tools enabling the effective protection of competition, thus to additionally boost the development of Serbian economy’s competitiveness, without which Serbia would not be able to derive the maximum benefits for its citizens and economy during the EU accession process.
Dr. Miščević pointed that competition policy in Serbia, and particularly operating activities of the Commission for Protection of Competition are highly valued both by the EU Negotiating Team of Serbia and Brussels administration. In this respect, she emphasized that within Negotiation Chapter 8, in the latest EC Report but also during informal contacts with the EC representatives, competition policy and operating activities of the Commission for Protection of Competition are assessed as one among activities of the Serbian administration most aligned with the EU acquis. To that effect, she strongly supported and emphasized the importance of further advancement of the Commission’s operating activities, and particularly commended the inclusiveness and transparency in preparing the new Law on Protection of Competition.

President of the Commission for Protection of Competition Dr. Miloje Obradović held discussions with Director of the Lawyers’ Committee for Human Rights (YUCOM) Milan Antonijević.

Dr. Obradović introduced the guest with current activities, along with plans of the Commission directed toward advancing the competition policy. Particular emphasis was placed on details concerning the preparation of new legislation regulating the competition policy area.

On that occasion the parties have agreed that civil sector representatives also take an active role in legislative drafting and that by providing their expertise contribute to the improved quality of regulatory solutions and development of the practice of the Commission for Protection of Competition, particularly in the area of human rights protection.

It is in the interest of consumers and Serbian economy that the Commission, in addition to instruments providing effective protection of competition, constantly advances its operating procedures and processes, while paying particular attention on the protection of human rights

At the session of the Committee on the Economy, Regional Development, Trade, Tourism and Energy of the National Assembly of the Republic of Serbia, members of the Committee have reviewed the Operations Report for 2016 of the Commission for Protection of Competition.

President of the Commission for Protection of Competition Dr. Miloje Obradović informed the Committee members that 2016 was the jubilee year of operating activities of the Commission for Protection of Competition. He emphasized that the Commission in accordance with its legal competences, efficiently implements all activities toward securing protection of competition in the Republic of Serbia.

Dr. Obradović stated that during the reporting period, inter alia, activities within the accession process of Serbia to the EU are continued, as well as that the said activities were positively assessed on the part of the European Commission in regard the screening outcome for Negotiation Chapter 8.

Following the rationale to the Operations Report of the Commission for Protection of Competition, President of the Committee proposed the adoption of the Report of the Commission for Protection of Competition, which was accepted by the majority of votes of the Committee members.

The session was headed by the President of the Committee Snežana B. Petrović, and attended by members and deputy members of the Committee, as well as members of the Council and officials of the Commission for Protection of Competition.

The Commission has extended the deadline for submission of comments and opinions to the Draft Regulation on Technology Transfer Agreements Exempt from the Prohibition, and Draft Regulation on Agreements between Undertakings Operating in the Rail, Road and Inland Waterways Transport Sector Exempt from the Prohibition, to October 17, 2017.
Undertakings, business associations, law offices, expert public and all other interested parties may submit to the Commission their comments and opinions in reference to the texts of Draft regulations via email address komentar@kzk.gov.rs.