On the occasion of the Competition Day, the Commission for Protection of Competition organized the international conference on New Competition Agenda.
The conference was opened with keynote addresses presented by President of the Commission for Protection of Competition Dr. Miloje Obradović, Rasim Ljajić, Deputy Prime Minister of the Government of the Republic of Serbia and Minister of Trade, Tourism and Telecommunications, Nikola Selaković, Secretary General of the President of the Republic of Serbia, H.E. Sem Fabrizi, Head of Delegation of the European Union to the Republic of Serbia, and H.E. Junichi Maruyama, Ambassador of Japan to Serbia. The event was also attended by Branko Ružić, Minister of Public Administration and Local Self-Government.

This year’s Honorable Guest of the conference was Japan
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In his address to the numerous guests of the conference, President of the Commission for Protection of Competition Dr. Miloje Obradović said that in the recently published EC Progress Report on Serbia, as an overview of progress achieved towards EU accession, the soundness of objectives set by the Commission are acknowledged. The Report notes the improvements made in terms of competition policy implementation, credibility and public image, as well as enhanced level of competition advocacy.

“The Commission therefore took the initiative of establishing the Western Balkans Forum of Competition Authorities in cooperation with the European Bank for Reconstruction and Development, aimed at contributing to more efficient delivery of operational activities of our authorities and enabling improved perspective and functioning of our regional markets, towards advancing business environment. Through regional cooperation, we demonstrate our ability to take common actions in various fields, and in this case in the field of competition policy, which can boost the entire region towards achieving EU standards and European cooperation practices”, Obradović said.

Deputy Prime Minister of the Government of the Republic of Serbia Rasim Ljajić reminded the audience of the interdependence between competition and efficient markets. Anticipated soon opening of the discount store chain Lidl in Serbia is given as a practical example of contributing factor to the competition. He also said that the functioning of Serbia’s telecom market is the best example of benefits brought about by efficient competition, indicating on three big companies “fighting” for each consumer on this market.
“We commend the efforts placed on creating equal opportunities for all, where market success is then achieved by own competences. From the market perspective, a level playing field is an important factor. We perceive the state as an unbiased judge that should only be present to give penalty cards for fouls and misconducts. It shouldn’t affect the outcome of the game, but secure an equal treatment for all involved”, Ljajić concluded.

Ljajić also reminded the audience that the most visible part of competition, from a consumer perspective, is the final price displayed in stores
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Secretary General of the President of the Republic of Serbia Nikola Selaković pointed that the Commission is perceived as an immune response for a society in transition, foremost responsible for safeguarding the national economy and entrepreneurs from disparities exposed on regional or international markets.

In his words, in less than 12 years, the Commission managed to find its place “shoulder to shoulder” with other “more older” independent authorities and became an indispensable factor in implementing the policy framework for achieving market efficiency. Selaković also underlined that the Commission for Protection of Competition must have a full operational independence similar to the one given to the Administrative Court and National Bank of Serbia.
“Compliance with competition rules at all times and everywhere, also during the times of fiscal consolidation and other unpopular measures, is of paramount importance so that such measures would not become an excuse for anticompetitive practices of undertakings and a cover for collusive behaviors and the creation of cartels or abuses of dominance”, Selaković underlined.

Referencing the EC Progress Report, Head of Delegation of the European Union to Serbia Sem Fabrizi said that Serbia has achieved a good progress in the matter of antitrust rules and is moderately prepared for the EU accession in terms of competition policy.
He underlined that Serbia has considerably converged its national competition regulations with EU acquis, as an area that falls within the exclusive competence of the Commission.

Competition policy is one of the essential elements or tools governing a country towards the EU common market, which is according to Fabrizi one of the strengths of the Union, considering the annual trade of 18 billion euro, with half a billion citizens and the largest and most advanced rule-driven common market worldwide, including rules governing competition.

Fabrizi reminded the audience that in the last 15 years, the European Union has granted 4.6 million euro assistance for the development of the CPC’s technical capacities, while a new project worth 1 million euro will start on June 1, with the assistance of the Italian Competition Authority.

Japanese Ambassador Junichi Maruyama underlined the increasingly developing economic cooperation of the two countries, as well as growing interest of Japanese foreign investors in Serbia. He also commended the cooperation achieved between the Japan Fair Trade Commission and the Serbian Commission.

Two panel discussions are organized as part of the conference: “New Agenda for the Region” and “Competition in the Digitalized World”.

Within the first panel discussion “New Agenda for the Region”, facilitated by CPC President Dr. Miloje Obradović, heads of regional competition authorities touched upon challenges encountered in their attempts to secure a level playing field for all undertakings. Presidents of the competition authorities of Slovenia, Croatia, Macedonia, Albania and Turkey participated in the panel, as well as Ms. Camelia Grozea – Knuth, EC policy officer in charge of Negotiation Chapter 8.

Nikolas Banašević from the EC Directorate-General for Competition facilitated the second panel focused on the topic “Competition in the Digitalized World”, and discussed with other participants about emerging challenges in the light of new digital technologies and new operating models of competition authorities. The panelists were professor Hassan Qaqaya, former Head of the UNCTAD Competition and Consumer Policies Branch, Kazuhiro Hara, Director of International Affairs Division, Japan Fair Trade Commission, Dr. Siniša Milošević, Head of the CPC Economic Analysis Division, Laszlo Gyerko, member of the Board of the Romanian Competition Council, and Željko Tomić, NALED representative and founder of company „Osa računarski inžinjering“.

During the conference, CPC President Dr. Miloje Obradović and Mr. Omer Torlak, President of the Turkish Competition Authority, signed the Memorandum on Cooperation in the Field of Competition Policy between the Commission for Protection of Competition of the Republic of Serbia and the Turkish Competition Authority.

The conference was attended by numerous officials of all state institutions, regulatory authorities, scientific institutions, as well as representatives of chambers of commerce and industry, law offices and business associations.

The Commission for Protection of Competition participated at the international conference “Implementation of competition law in Serbia – status and perspectives”, organized by the Law Office CMS Beograd, a member of CMS Group, aimed at achieving increased visibility of competition advocacy efforts.

President of the Commission Dr. Miloje Obradović gave a keynote address, while the Commission Council members, Čedomir Radojčić and Dr. Veljko Milutinović, participated as panelists at both sessions of the conference.

The conference was focused on different experiences in the implementation of competition law by using national and EU practical examples on the importance of competition policy.

Dr. Obradović presented activities to date and plans of the Commission for Protection of Competition, as an authority which by using the approaches and methods available within the current legislation in an effort to strengthen competition in line with EU standards, has achieved the recognisability as one of the most active competition authorities in the region.

The Commission President reminded the audience that in the recently published Progress Report, the European Commission assessed that the implementation of the Law on Protection of Competition in the previous two years is increased, both in the number of antitrust cases and the relative size and significance of companies under CPC’s investigations.
The topics of two sessions organized as part of the conference covered both the public and private law enforcement.

The first panel discussion, also attended by Commission Council member Čedomir Radojčić, covered the issues of detection and follow up on infringements and related decisions, as well as leniency programs and dawn raids.

The focus of the second panel discussion opened on the topic of private law enforcement, related to the possibility of making the action for damages a real probability in Serbia, and also on what needs to be amended in the current competition legislative framework. Dr. Veljko Milutinović, member of the CPC Council, participated at this session on behalf of the Commission.

The conference was also attended by Nikolas Banašević from the EC Directorate-General for Competition, as well as Dr. Harald Kalenberg, a partner in CMS Stuttgart office, also a chair of the antitrust and competition practice group.

The general conclusion of the Conference’s participants is that Serbia has experienced a major breakthrough in the field of competition policy, particularly in terms of case-related efficiency and increased level of awareness on the importance of antitrust law. It is also acknowledged that there is still room for further improvement, particularly in the field of action for damages, when such damages are inflicted on companies and consumers by anticompetitive practices.

On April 17, the European Commission presented the 2018 Progress Report on Serbia covering a two year period, as an overview of progress achieved towards EU accession that established the operational advancement of the Commission for Protection of Competition of the Republic of Serbia. The Commission’s activities are analyzed within the Negotiation Chapter 8: Competition Policy.

As per assessment presented by the European Commission, competition policy implementation capacity has increased, both in the number of antitrust cases and the relative size and significance of companies under investigation.

The Report reads that “the CPC’s investigations of large private companies and public enterprises significantly contributed to improving its credibility and public image. Competition advocacy activities increased.”

The Report also establishes that “the CPC’s decisions have been increasingly upheld by appeal courts”, but also that “the capacity of the judiciary to handle complex competition cases needs to be strengthened significantly.”

The findings presented as a part of the analysis within the Negotiation Chapter 8 of the 2018 Progress Report on Serbia confirm that the Commission is recognized as one of the parts of the Serbian administration whose operational activities are highly aligned with the EU acquis, in addition to its operational advancement achieved each year, which favorably affects the improvement of the business environment in the Republic of Serbia.

In order to ensure an increased level of information among undertakings in Serbia, the Commission for Protection of Competition has prepared four leaflets that in a simple manner present risks of infringements of the Law on Protection of Competition caused by companies and individuals, even unintentionally.

The leaflets are designed in a Q&A form providing replies to specific issues, so that each undertaking can check the likelihood of anticompetitive risks arising from their behaviors. Particular emphasis is placed on specific cases such as failure to notify concentrations, unintentional pooling offers, participation in public procurements, code of business conduct, etc., which may represent a form of anticompetitive practices leading to infringements of competition law.

The Commission wishes to use this campaign in order to reach out to all undertakings with the competition policy. The Commission’s promotional campaign will be presented to the participants of the “New Competition Agenda” conference, to be held on the occasion of the Competition Day, on Friday, 20 April 2018, at Klub poslanika in Belgrade.

The project is financially supported by the Royal Norwegian Embassy in Belgrade.

President of the Commission for Protection of Competition Dr. Miloje Obradović, met today with Ambassador and Head of Delegation of the European Union to the Republic of Serbia H.E. Sem Fabrizi.

The main discussion topics related to activities implemented by the Commission for Protection of Competition aimed at advancing business environment in the Republic of Serbia, particularly those in relation to the accession of Serbia to the European Union, within Chapter 8: Competition Policy.

Dr. Obradović introduced Ambassador Fabrizi to the Commission’s activities to date and plans, particularly those concerning the alignment of competition policy legislative framework with the EU acquis.

It is underlined that competition policy in Serbia, and especially the work of the Commission for Protection of Competition, so far have positive assessed by the Brussels administration. In that context, President Obradović presented expectations that in this year’s EC Progress Report, the Commission for Protection of Competition will be again recognized as one of the parts of the Serbian administration whose operational activities are highly aligned with the EU acquis.

The Commission President also informed the interlocutor on project activities concerning the formation of the Western Balkans Forum of Competition Authorities, headquartered in Belgrade, as a jointly launched initiative by the Commission and EBRD. The parties also touched upon initial activities in relation to a Twinning project aimed at advancing the competition policy in Serbia, with the Italian Competition Authority selected as a partner institution. During the talks, particular emphasis is placed on a project segment with regard to training of judges of the Administrative Court, which should contribute to their advanced understanding of competition law and related implementation.

During the talks with President Obradović, Ambassador Fabrizi supported efforts of the Commission placed on securing a level playing field for all undertakings and underlined the importance of both further education on the competition policy on the market of the Republic of Serbia and continuous improvement of the Commission’s work.

The Commission for Protection of Competition conducted a competition conditions inquiry into the tire market on the territory of the Republic of Serbia in the period 2014-2016.

The research is conducted with a view to achieve more qualitative and comprehensive approach in the work on sector-related cases. In that respect, the inquiry’s main objective related to the establishment of market structure, market coverage, relations between competitors and their respective market shares.

This inquiry is prepared in accordance with the provision of Article 21(1/6) of the Law on Protection of Competition, stipulating the Commission’s competence to monitor and analyze conditions of competition on individual markets and in individual sectors.

For the purposes of this inquiry, the following relevant markets are defined and individually analyzed:

• motor vehicle tire market,
• bus and truck tire market,
• motorcycle and bicycle tire market,
• agricultural vehicles and machinery tire market,
• construction and industrial vehicles and machinery tire market.

The Commission also analyzed the production and import as segments of supply, in addition to the export and sales on the domestic market as segments of demand for the tires concerned.

The main sources of data and information for the preparation of this inquiry are data provided by the Customs Administration of the Ministry of Finance, data submitted by undertakings, as well as publicly available data, including Internet-based data and current regulations. The Commission forwarded requests for the submission of information to tire manufacturers in Serbia, namely: Tire manufacturing company Tigar tyers doo Pirot, companies Trayal korporacija ad Kruševac and Cooper tire & rubber company Serbia doo Kruševac, in addition to the largest tire dealers and sellers.

On February 23, 2018, the Administrative Court delivered a judgment on the annulment of a decisionof the Commission for Protection of Competition on the establishment of competition infringement by company EPS Distribucija. The case is referred back to the Commission for assessment.

The contested decision of the Commission enacted on December 23, 2016, established that company EPS Distribucija has abused dominance on the relevant market of electric power distribution on the territory of the Republic of Serbia by applying dissimilar conditions to equivalent operations with respect to a variety of undertakings, by which individual undertakings are placed in unfavorable position against competitors, and by imposing unfair business conditions. The decision imposed a measure for protection of competition, measures for removal of competition infringement and deadlines for execution thereof.

By acting on the statement of claims of January 26, 2017 submitted by EPS Distribucija for the annulment of the Commission’s Decision, the Administrative Court rejected the statement of claims as unfounded. EPS Distribucija filed before the Supreme Court of Cassation the Review petition of the court’s ruling – The Administrative Court’s Judgment. The Supreme Court of Cassation delivered a judgment, accepting the petition of company EPS Distribucija, setting aside the mentioned judgment of the Administrative Court, and referring the case back to the Administrative Court for judgement.

In the enforcement of the judgment of the Supreme Court of Cassation, the Administrative Court delivered a judgment on the acceptance of statement of claims and annulment of the Decision, referring the case back to the Commission for assessment, due to the infringement of rules of procedure.

In the judgment concerned, the Administrative Court failed to establish whether EPS Distribucija has abused the dominant position, but has ordered the Commission to remove the deficiencies identified, and to enact a decision in this case on the basis of such established facts.

Within the statutory time limits, the Commission will act on orders from the judgment of the Administrative Court and enact a new decision, and depending on the facts and circumstances established, will impose appropriate measures.

The Commission will in this case as well, consistently implement the Law on Protection of Competition in order to achieve economic prosperity and well-being of the society, and especially the benefit of the consumers, striving to secure the equal treatment, legal certainty and predictability in acting for all undertakings, regardless of their size and forms of ownership.

As part of a joint initiative with the Commission for Protection of Competition, the European Bank for Reconstruction and Development (EBRD) appointed the Center for Liberal-Democratic Studies (CLDS) as a consultant for the provision of support services in designing, setting up and operative management of a regional forum of competition authorities, covering all Western Balkan countries, as well as EU member countries, Slovenia and Croatia.

By working directly with the Commission and the European Bank for Reconstruction and Development, CLDS will work on defining the recommended structure and management mode of this regional forum, which is foremost directed at enhancing the mutual exchange of information in terms of competition policy implementation, including the instituted infringement proceedings.

The objective of this forum is regional harmonization in competition law implementation by way of alignment against the best global practices in the related field.

The Commission for Protection of Competition instituted proceeding ex officio for investigating the infringement of competition against SERBIA BROADBAND – SRPSKE KABLOVSKE MREŽE DOO BEOGRAD for establishing the existence of abuse of dominance, within the meaning of Article 16 of the Law on Protection of Competition.

By analyzing the report on the fulfilment of conditions stipulated by the Commission’s decision no. 6/0-03-01/2017-26 of March 13, 2017 in relation to company SBB, conditionally approving the implementation of concentration created by acquisition of control on the part of company SBB over company Interaktivne kablovske objedinjene mreže – I.KOM d.o.o, the Commission gained knowledge that company SBB, as of January 1, 2018, increased the monthly service fee for maintenance of cable-distribution system and provision of cable TV for 100.00 dinars, that is, established the related fee at the level of 1,395.00 dinars.

As company SBB failed to present sufficient evidence on the reasonableness of costs pertaining to the monthly service fee for maintenance of cable-distribution system and provision of cable TV in the amount of 1,395.00 dinars, in accordance with Article 41 of the Law on Protection of Competition (Official Gazette of the RS 51/2009 and 95/2013 – hereinafter referred to as the Law) the Commission will establish the facts, that is, whether the price of related service is set in an unfairly high amount, which may lead towards the exploitation of service users.

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 at the address 25, Savska St., Belgrade.