President of the Commission for Protection of Competition Dr. Miloje Obradović participated at the 2018 Kopaonik Business Forum – panel discussion “Antitrust compliance: Where companies go wrong and how to prevent them from doing so?”.

Besides Dr. Obradović, competition panel participants were Prof. Dr. Miroljub Labus (Faculty of Law in Belgrade), Ana Tozzi (Foreign Investors Council) and Dragan Lupšić (Coca-Cola), while Prof. Dr. Dragan Lončar (Faculty of Economics in Belgrade) moderated the discussion.

President Dr. Obradović underlined that a qualitative legal framework is the key prerequisite for efficient implementation of antitrust policy, in addition to the institutional independence of competition authorities. Of no less importance is consistent implementation of regulations, said Dr. Obradović.

“Our goal is to create a competitive market where undertakings will increase their productivity, innovations and investments, consequently generating economic prosperity, well-being of the society and the benefit of the consumers. For that reason, the Commission sees the increase of influence of antitrust policy on the economy as its key mission”, underlined the Commission President.

Dr. Obradović emphasized that the Commission will be even more focused on intensified regional cooperation in the period to come, and announced soon opening of the Western Balkans Forum of Competition Authorities, headquartered in Belgrade. The Commission implements this project under the auspices of the European Bank for Reconstruction and Development, with the support of the European Commission.

“What do we expect in the future: tradition – to continue with our track record, trust – to continue building it even further, transparency – to secure legal safety for undertakings by having a consistent approach to proceedings, but also the positioning of the Commission and further organic growth and institutional strengthening”, said Dr. Obradović during the panel discussion.

Ana Tozzi underlined the importance of creating an equal-level playing field. “The country is accessing to the EU, and the economy should be able to handle the competitive pressure, and to do so, you need to have a company built on strong foundations”, Tozzi concluded at the panel
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Prof. Dr. Labus reminded the audience that not so long ago Serbia was outside the market trends. For that reason, the key task of competition policy today is to prevent abuses of dominance in all sectors of the economy.

During the panel discussion, Dragan Lupšić underlined the importance of education of all undertakings on antitrust policy.

The competition panel was attended by a great number of the Business Forum participants, representatives of the academic and expert public, companies and law offices.

At this year’s Business Forum, the Commission is also represented by members of the CPC Council Mirjana Mišković Vukašinović and Marko Obradović, in addition to Dr. Siniša Milošević, Head of the Economic Analysis Division and Gordana Lukić, Special Advisor at the Assessment of Concentrations Division.

At the 2017-2018 Competition Advocacy Contest: Closing the gap through competition advocacy: microeconomic policies, macroeconomic implications, traditionally launched by the International Competition Network (ICN) and the World Bank Group (WBG), the Commission for Protection of Competition received the Honorable Mention award.

The award is granted in a competition of more than 50 papers from 30 jurisdictions around the world, divided into four categories. The papers were reviewed by a panel comprised of renowned competition policy experts from the WBG and ICN.

The paper prepared by, Sunčica Đorđević, Senior Advisor, Miki Vidaković, Independent Advisor and Maja Dobrić, Advisor – all from the CPC Competition Infringements Division, competed within the category “Creating markets for private sector development”.

Awarded papers will be published, while a formal award ceremony will be organized at the ICN Annual Conference event, to be held this year in India. The Commission for Protection of Competition of the Republic of Serbia is one of more than 140 members of the International Competition Network (ICN).

This contest, launched on annual basis, aims to highlight the key role competition agencies play in promoting competition by showcasing their advocacy success stories. The Commission was also awarded last year in the 2016-2017 Competition Advocacy Contest in the category “Implementing advocacy strategies at multiple levels (regional, national, subnational, economic wide and sector specific)”.

The fact that the Commission for Protection of Competition is awarded for the second year in a row for accomplished activities in competition advocacy is the proof of its genuine dedication to developing awareness on the importance of competition policy.

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.

The Commission for Protection of Competition also conducted a competition conditions inquiry into software and IT equipment market on the territory of the Republic of Serbia.

For the inquiry related needs, the Commission identified two relevant markets within a wider information and communication technology (ICT) market – software wholesale market, and hardware wholesale market (computers and IT equipment). Within such defined markets, particular attention is placed on the software and IT equipment public procurement markets.

The basic objective of the inquiry was to estimate the size and volume of defined markets, identify the most important undertakings operating on such defined markets and to assess their market share, as well as respective relative market power.
The subject of this inquiry related to the collection and elaboration of data on generated sale revenues pertaining to the software and computers and IT equipment on the domestic and foreign markets, as well as on generated revenues based on the participation ratio in public procurement procedures.

The inquiry used data provided by the Public Procurement Office on implemented software and IT equipment public procurements from 2014-2016, in addition to the conducted investigation into the largest software and IT equipment manufacturers and distributors founded on 42 company-based sample. For the inquiry related needs, the Commission also used publicly available data and information on the ICT sector, data from the balance of services published by the National Bank of Serbia, and data provided by the Statistical Office of the Republic of Serbia.

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 reference: Comments to the software and IT equipment market inquiry.

The Commission for Protection of Competition conducted a competition conditions inquiry into the raspberry purchase and export market on the territory of the Republic of Serbia.
The inquiry is conducted with the objective of investigating the existence of a reasonable assumption on the presence of competition infringement on the raspberry purchase market effected on the part of buyers (owners of cold storage facilities), pursuant to which the Commission would be able, in accordance with its competences, to institute an investigative proceeding ex officio.

The subject-matter of this inquiry was the collection and elaboration of data on production, purchase, import and export of raspberries and the establishment of circumstances under which the 2017 raspberry harvest purchase is conducted. For the purpose of conducting the inquiry, raspberry import/export data for 2010-2017 are collected from the competent authorities. In line with submitted data, the largest raspberry exporters are identified and contacted by the Commission with a special request for the submission of data and information.

Pursuant to all collected and analyzed data and information, the Commission was unable to derive a conclusion on the existence of disturbances on the 2017 raspberry harvest purchase market, which could be the result of preventing, restricting or distorting competition on the part of undertakings operating on the related market.

The inquiry also indicated on numerous issues of a systematic nature that both raspberry producers and buyers encounter. Such issues, as per understanding of the Commission, require the involvement of all relevant institutions towards finding a long-term and sustainable solution, so that the continued existence of this extremely important fruit-growing branch yielding significant export revenues would not be jeopardized.

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

President of the Commission for Protection of Competition Dr. Miloje Obradović received today the visit of Director of the Public Procurement Office Dr. Predrag Jovanović.

The meeting is initiated so as to additionally advance cooperation between the two institutions in order to advance the public procurement system and related controls in Serbia. Both parties have, among other things, agreed on more intensified exchange of experiences in resolving issues related to the public procurement controls.

The importance of advancing the knowledge of bidders and ordering parties in public procurement procedures is particularly emphasized, aimed at securing equal conditions for more cost-effective, efficient and transparent utilization of public funds in public procurement procedures. To that end, it is agreed that the two institutions need to co-organize workshops and seminars, both for ordering parties and for bidders in public procurement procedures.

Both parties also exchanged experiences concerning the two authorities’ activities in the EU integration process of Serbia within Chapter 5: Public procurement and Chapter 8: State aid and competition policy.