Representatives of the Commission for Protection of Competition have participated as guests at the Working group session of the National Convention on the EU which monitors the negotiations on Chapter 8 – Competition policy, held in Niš. This occasion also served as an opportunity to present results to the expert public of Niš of the Phase I of the Sector inquiry into the food, beverages and tobacco retail market in the Republic of Serbia.

Prof. Dr. Marija Radosavljević, Vice-Dean for Scientific Research, has addressed the audience in the opening of the session, followed by keynote addresses given by Marko Obradović, Council member of the Commission for Protection of Competition, Dr. Boban Stojanović, Full Professor at the Faculty of Economics in Niš, and Ivan Đekić, member of the Working group of the National Convention on the European Union and of the Society of Economists of Niš.

The sector inquiry into the retail market prepared by the Commission was presented by Dr. Siniša Milošević, Head of the Economic Analyses Division, and Aleksandra Ravić, Senior Advisor in this sector.

Following the presentation of the analysis, CPC representatives have opened a discussion on the role and importance of presented results and prospects for the retail sector development.

The Commission for Protection of Competition has instituted a proceedings against seven undertakings alleging that competition from Article 10 of the Law on Protection of Competition has been infringed by bid rigging in public procurements.

Proceedings ex officio is instituted against the following undertakings: Original, preduzeće za spoljnu i unutrašnju trgovinu i usluge doo Beograd (Novi Beograd), Mikops doo Export-Import za proizvodnju, trgovinu i usluge Niš, Preduzeće za usluge i trgovinu Birolinija, društvo sa ograničenom odgovornošću Beograd, Biro print sistemi doo Beograd, Preduzeće za trgovinu i usluge Dikti Line doo, Beograd, Društvo za spoljnu i unutrašnju trgovinu Birodeveloping doo Niš, Društvo za proizvodnju, promet i usluga Birotehnika, Export-Import doo, Jagodina.

By implementing legal powers, officials of the Commission for Protection of Competition have conducted a dawn raid on five locations. Use of dawn raids, as an exceptionally efficient instrument for detecting acts or actions of undertakings that as their purpose or effect have or may have a significant restriction, distortion or prevention of competition, in this instance as well served to collect documentation considered valuable for the further conduct of the Commission in this case.

President of the Commission Dr. Miloje Obradović took part in an event marking the European Competition Day, held this year in Sofia, Bulgaria. During the working session of the largest European gathering on competition policy, Dr. Obradović also met with Margrethe Vestager, European Commissioner for Competition.

On the occasion, President Obradović introduced the European Commissioner for Competition to activities and plans of the Commission for Protection of Competition and invited the Commissioner to visit Belgrade during the first session of the Western Balkans Forum of Competition Authorities.

Ms. Vestager thanked the Commission for the invitation, noting that the start of operations of the Western Balkans Forum of Competition Authorities is a good occasion for her first visit to the Commission for Protection of Competition of the Republic of Serbia.

The Commission for Protection of Competition of the Republic of Serbia and the National Alliance for Local Economic Development (NALED) have organized a conference today, presenting the results of phase one of the sector inquiry into the food, beverages and tobacco retail market in the Republic of Serbia, prepared by the Commission for Protection of Competition.

During the conference held in the City Assembly of Belgrade, keynote addresses were given by President of the Commission for Protection of Competition Dr. Miloje Obradović, State Secretary at the Ministry of Trade, Tourism and Telecommunications Vesna Kovač, and Vladimir Čupić, President of the Food and Agriculture Alliance of NALED and Director of the Atlantic Group Representative Office for Serbia.

The inquiry was presented by Aleksandra Ravić from the Economic Analyses Division of the Commission for Protection of Competition.

Following presentation of the inquiry-based results, a panel session on retail market prospects in Serbia was also held, attended by Dr. Siniša Milošević, Head of the Economic Analyses Division of the Commission for Protection of Competition, Bojana Amanović from the Ministry of Trade, Tourism and Telecommunications, Dr. Goran Petković, Full Professor at the Faculty of Economics in Belgrade, and Goran Kovačević, NALED Fair Competition Alliance and CEO of Gomex.

The Commission for Protection of Competition has prepared a short guide to the rights and obligations of the parties during dawn raids. In this manner, the Commission’s intention was to bring the dawn raid procedure as close as possible to market participants, while by presenting the rights and obligations, potential penalties which are implemented if a party interferes with the conduct of inspections are also brought forward.

The Commission is authorized to implement dawn raids in competition investigation procedures. Dawn raids are carried out by authorized persons of the Commission, in accordance with the provisions of the Law on Protection of Competition and the Law on General Administrative Procedure, and within the powers established by way of a conclusion on the implementation of dawn raids which are enacted by the Commission President

President of the Commission for Protection of Competition Dr. Miloje Obradović received a visit from Ambassador of the Republic of Korea to Serbia YOO Dae Jong.

Dr. Obradović introduced the Ambassador to numerous activities of the Commission for Protection of Competition, as well as plans for enhancing procedures and competition advocacy in Serbia.

The Ambassador of the Republic of Korea expressed a desire to expand already established cooperation at all levels with the Commission for Protection of Competition, which was launched last year by organizing a very well attended workshop on the implementation of the leniency programme in the Republic of Korea, held in Belgrade. This event was aimed at acquiring increased knowledge by not only employees but also other stakeholders on the best global practices in implementing competition policy.

President Obradović voiced satisfaction with the initiative presented by Ambassador YOO Dae Jong, which may result in even more intensified cooperation and exchange of experiences between the Korea Fair Trade Commission and the Commission, with the overall aim of improving the business environment in Serbia.

The Commission for Protection of Competition has enacted a decision on the termination of proceedings against the Bar Association of Serbia.

Following investigation, which included assessment of submitted documents and gathered data, the Commission has concluded that it cannot be established with certainty that the Bar Association of Serbia, as a form of associated market participants, has enacted a decision which significantly restricts, distorts or prevents competition on the market of legal assistance services provided by attorneys at law on the territory of the Republic of Serbia, i.e. that it has infringed competition within the meaning of Article 10 of the Law. In that regard, the Commission has established that conditions for further conduct of the proceedings are not met.

By way of reminder, the Commission had instituted ex officio proceedings against the Bar Association of Serbia on July 29, 2014, due to the existence of a reasonable assumption that the provisions of enacted decisions restrict the market and the development of the market of legal assistance services provided on the territory of the Republic of Serbia.

In his keynote address, President of the Commission for Protection of Competition Dr. Miloje Obradović addressed the audience of the First Public Procurement Forum, dedicated to enhancing the professionalization and competition in public procurements.
Commenting on the Commission’s competences in public procurements, President Obradović reminded that pursuant to the Law on Protection of Competition, bid rigging in public procurements are among the most severe competition infringements.

Detected rigged bids in public procurements are sanctioned in accordance with the Law, in the form of an obligation to pay a monetary sum in the amount up to 10 percent of the total revenue generated during the preceding year, but also with a suspension from participating in public tenders for a certain period of time, similar to the EU practice as well, Dr. Obradović recapped.

The President added that the Commission remains committed to detecting bid rigging cases on a continuous basis. Dedicated spending of funds through public procurements is the goal of all responsible institutions that in various manners deal with the enhancement of the public procurement system in Serbia. In that regard, activities taken to prevent abuses in public procurements and to ensure an effective competitive environment are among the top operational priorities of the Commission, Dr. Obradović concluded.
Keeping up to date with global trends, and owing to the cooperation established with the British Competition and Markets Authority, the Commission has just recently begun to also use a digital program that assists in detecting possible rigged bids or collusion of bidders in public procurements, said President Obradović.

The program enables the Commission’s employees that by entering various parameters, such as prices, terms and conditions of public procurements or individual segments of bids, investigate a greater number of public procurements in a faster and more efficient manner.

The event is organized by the Public Procurement Office and GIZ, as part of the EU funded project for enhancing the public procurement system in Serbia, implemented in cooperation with UNDP, Sigma and the Kingdom of Sweden, and which was attended by a great number of representatives of international and national institutions, stakeholders and the economy.

The Commission for Protection of Competition instituted ex officio proceeding for the investigation of competition infringement against GR SPORT DOO from Sremska Mitrovica and POLANIK Sp.zo from Piotrków Trybunalski, Poland, for establishing the existence of restrictive agreement within the meaning of Article 10 of the Law on Protection of Competition.

Company GR Sport has been an exclusive distributor of company Polanik continuously since 2005 until the initiation of proceeding. By way of the recently conducted inquiry into the athletic equipment and sports props wholesale market, implemented by the Commission, it is established that the market share of GR Sport on the wholesale market of athletic equipment (clothing and footwear excluded), might exceed 25%.

Seeing that the restrictive agreement was not notified to the Commission with a request for the exemption pursuant to the legislative acts and corresponding regulations, i.e. that this restrictive agreement was not exempt, the Commission reasonably assumed the existence of competition infringement that as its purpose or effect has or may have a significant restriction, distortion or prevention of competition.

All persons in possession of data, documents or other relevant information that could contribute to the fact-finding in this proceeding are called upon to submit the said to the Commission for Protection of Competition to the address 25 Savska St., Belgrade.

On April 24, 2018, the Commission for Protection of Competition conducted dawn raids on business premises of companies “Keprom d.o.o.” and “Yuglob d.o.o.” from Belgrade. Dawn raids, as a special measure of inquiry, are conducted at three locations in Belgrade, where the Commission collected evidence of the importance for further conduct.

The Commission reasonably assumed that said companies, as big importers and distributors of baby and infant products, have concluded restrictive agreements by way of which have set the resale price of goods, and in that manner have infringed the competition rules stipulated in Article 10 of the Law on Protection of Competition.

Noting the exceptional significance of this market for consumers, but also for the society as a whole, the Commission will continue to investigate anti-competitive behaviors and competition compliance of undertakings in the coming period as well, particularly in terms of price policy.

In addition to the competition infringement proceeding, the Commission also instituted a comprehensive sector inquiry into the baby and infant product market.