Activities of the Commission for Protection of Competition aimed at advancing business environment in the Republic of Serbia, particularly those related to negotiations within Chapter 8: Competition policy, were the main meeting topics between Dr. Miloje Obradović, President of the Commission for Protection of Competition, and Azra Iković from the EC Directorate-General for Neighbourhood and Enlargement Negotiations.

Dr. Obradović introduced guest to the Commission’s operational activities and plans to date, particularity those concerning the compliance of legal framework governing the institution’s activities with the EU acquis. The Commission prepared three draft regulations which are currently in the regulatory approval process, wherewith the current legal framework is being fully aligned against the National program for adoption of the EU acquis, Dr. Obradović emphasized.

It is highlighted that competition policy in Serbia, and particularly operational activities of the Commission for Protection of Competition, are favorably assessed by the Brussels administration. Namely, in the last EU Progress report, as well as during informal talks with the EC representatives, the Commission for Protection of Competition is recognized as one of the Serbian public institutions whose operational activities have mostly been harmonized with the EU acquis.

The Commission’s President also informed Ms. Iković on project activities concerning the creation of the Western Balkans Forum of Competition Authorities, headquartered in Belgrade, an initiative jointly instituted by the Commission and EBRD.

President Obradović also presented directions taken in the ongoing advancement of competition policy framework in Serbia, in addition to competition advocacy activities implemented by the Commission. To that end, DG NEAR representative supported and emphasized the importance of further advancement of CPC activities.

On the session held on February 2, 2018, the Council of the Commission for Protection of Competition enacted a decision on conditional approval of concentration created by acquisition of control on the part of company Compagnie des Lesaffre S.A. over company Altech Serbia Fermentaciona industrija d.o.o. Senta.

Based on the facts determined during the investigation procedure, the Commission established that company Altech will create a dominant position of on the yeast extract production and sales market by way of the merger, with the concurrent strengthening a dominant position on the baker’s yeast production and sales market in the Republic of Serbia.
The Commission particularly considered the statements provided by company Lesaffre that the implementation of this concentration will significantly improve the utilization of production capacities of the target company, yeast extract exports, and thus increase the operating efficiency.

The Decision sets conditions in the form of behavioral measures and mandatory regular reporting to the Commission with the goal of preserving and further advancing production capacities of baker’s yeast and yeast extract in the Republic of Serbia.

Periodical reports to be submitted to the Commission will contain:
1. Data on the rate of production capacity utilization of company Altech
2. Data on the yeast extract production of company Altech
3. Data on the baker’s yeast production of company Altech
4. Rationale on potential service production termination, in case of contract termination with the only company’s buyer to date, before the specified date of termination set in the contract.

By implementing proposed special conditions and upon analysis of submitted reports, in full and complete consideration of the importance of this market, the Commission will monitor whether and to what extent the business plans and motives for the implementation of this concentration as presented by Lesaffre are implemented, assessed as favorable effects of concentration during the investigation process conducted by the Commission.

President of the Commission for Protection of Competition Dr. Miloje Obradović met with Japanese Ambassador to Serbia H.E. Junichi Maruyama.

Dr. Obradović introduced H.E. Maruyama with the competences and activities, as well as plans of the Commission for Protection of Competition, aimed at advancing and further engaging in competition advocacy activities in Serbia. The Commission President used this opportunity to express its gratitude to the Embassy of Japan in Belgrade for the support provided in the Commission’s operational activities to date.

During the talks, particular attention was placed on activities concerning the new competition law drafting process, a legislation that would additionally advance Serbian business environment and foster investments into our national economy, according to Dr. Obradović
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H.E. Maruyama expressed its satisfaction owing to the achieved qualitative cooperation with the Commission for Protection of Competition, as well as increasingly intensified exchange of experiences between Japanese and Serbian competition authorities.

The Commission for Protection of Competition concluded a sector inquiry into the oil derivatives retail market in 2016 in the Republic of Serbia. The subject of the inquiry was the establishment of relations between main competitors in defined market segments with the objective to conduct a comparative inquiry into fluctuations of individual categories and identify potential market weaknesses.

The integral part of the report relates to derived conclusions based on which, inter alia, tendencies may be perceived, both on the oil production and processing market and on the oil derivatives retail market, as well as the structure and fluctuation trends in retail prices of selected oil derivatives.

The Commission assessed a level of compliance with the recommendations provided in previous reports, and once again pointed to the significance of establishing a precise statistical records on oil and oil derivatives, in addition to the importance of cooperation with other competent institutions towards creating a legal and business environment to advance the free market competition.

Considering the importance of the oil sector for energy activity and overall industrial development, as of March 1, 2018, the Commission will open a competition conditions inquiry into this market for 2017.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, as well as suggestions for the continuance of the inquiry, no later than February 28, 2018, to email address: office.kzk@kzk.gov.rs, with the subject line: Comments to the sector inquiry into the oil and oil derivatives market.

The Commission for Protection of Competition conducted a competition conditions inquiry into the sports footwear, clothing and equipment market on the territory of the Republic of Serbia.

The inquiry is conducted with the objective of establishing more qualitative and comprehensive approach in cases concerning this sector, but also towards raising awareness and education level of undertakings, since all, including this activity as well, are directed at securing efficient competition on the territory of the Republic of Serbia.

The subject of the inquiry related to the collection and elaboration of data on procurement and sales of sports footwear, clothing and equipment in the period 2014-2016. In line with the data submitted by undertakings for inquiry-related purposes, the Commission analyzed the market structure, relations between main competitors and their market shares. In this respect, researchers have established a dynamic growth, high concentration of observed markets, as well as revenue increase of all undertakings generated from the sales to end-users and other dealers. Considering all specificities of this market, the Commission will continue to monitor the sector concerned with a particular attention in the period to come as well.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, to email address: office.kzk@kzk.gov.rs, with the subject line: Comments to the sports footwear, clothing and equipment market inquiry.