The Constitutional Court of the Republic of Serbia has reached the Conclusion, dismissing the proposal for assessment of constitutionality of the provision of Article 45 of the Law on Protection of Competition. The proposal for assessment of constitutionality of the provision of Article 45 of the said Law was made last July by the Commissioner for Information of Public Importance and Personal Data Protection.

The above-mentioned provision of Article 45 of the Law relates to the obligation of the Commission for Protection of Commission to adopt a measure, at the request of a party, protecting the source of information or specific data if it is evaluated that the interest of that applicant is justified and substantially more important than the public interest in terms of the subject of said request.

The assessment of the Commissioner that the provisions of Article 45 of the Law on Protection of Competition governing “safeguard measures” with respect of information as implemented by the Commission for Protection of Competition are contrary to the arrangements made under the Law on Free Access to Information of Public Importance, is dismissed by the Constitutional Court in its conclusion reached during the session held on 25 April this year.

The Commission for Protection of Competition welcomes this move made by the Constitutional Court, noting that it contributes to the legal certainty of undertakings operating in the Republic of Serbia, but also to the harmonization of practice in cases pending before the Commission.

In proceedings pending before the competent competition authorities, including the Commission for Protection of Competition of the Republic of Serbia, but also the EU Directorate-General for Competition and Member States’ national competition authorities, undertakings submit numerous, highly sensitive business information, such as on suppliers and buyers, value and volume of sales and purchases, market shares, reasons for entering into a merger, agreements, acts containing business plans and future development strategies, etc., without which the Commission could not exercise its competences entrusted to it by the Law. – The disclosure of such information to the third parties could result in serious harm for the same undertakings providing the information, which caused the introduction of a rule in the comparative practice governing modus operandi of the competition authorities not to disclose nor make available any information or documentation containing trade secrets or other business sensitive information.

Such practice is also generally accepted in the EU competition law, since the EC Notice on the rules for access to the Commission file in antitrust cases, Guidance on the preparation of public versions of merger decisions, as well as the Guidance on the preparation of public versions of Commission Decisions adopted under the Merger Regulation, provide examples which confirm that information on buyers, distributors, market plans, costs and prices, as well as sales strategies or other commercially valuable plans need to be considered a trade secret whose access to file must be refused. Similar position and competences of national competition authorities are also reconfirmed by the Directive (EU) 2019/1 of the European Parliament to empower the competition authorities of the Member States to be more effective enforcers and to ensure the proper functioning of the internal market.

The Commission for Protection of Competition is accountable for its work to the National Assembly, to which it submits annual activity reports. At the session held on March 27, 2019, the competent Parliamentary Committee discussed and adopted the 2018 Activity Report of the Commission for Protection of Competition.

At the 24th Special Sitting of the National Assembly of the Republic of Serbia, MPs have discussed the CPC Activity Report for 2018.

In its opening statement given before the National Assembly, President of the Commission Dr Miloje Obradović presented the main elements of the Activity Report, as well as the key activities of the Commission implemented during the reporting period.
The Commission’s report, according to President Obradović, contains all key elements concerning the operations implemented within the scope of competences of the institution. During the reporting period, the Commission has increased its administrative and institutional capacities and remained focused on efficient and effective enforcement and implementation of the law, towards ensuring the most efficient protection of competition in Serbia.

“Our goal is to create a competitive market where undertakings will increase their productivity, innovations and investments, resulting in the growth, development and increased standard of living of the citizens of the Republic of Serbia. The established high level of transparency and predictability in the operations of the Commission will remain key instruments in preserving the trust in the Commission’s work in the period to come and ensuring the legal certainty of undertakings”, said CPC President Obradović when speaking to the national MPs.

Snežana Petrović, President of the Committee on the Economy, Regional Development, Trade, Tourism and Energy of the National Assembly of the Republic of Serbia, underlined “the fact that the activities implemented by the Commission and its overall competition policy operations represent one of the key pillars of the reform of the national economy, resulting from the commitment of our country to introduce a market-oriented economy and modern economic policy following a turbulent period in the previous decades. Based on experience to date, we can testify to the good example set by the Commission for Protection of Competition of the Republic of Serbia in its work as an independent institution that practices and favors transparency of its operations, which also implies that the Commission is a subject to an assessment and control of citizens and the general public.”

The Activity Report, as well as operations of the Commission for Protection of Competition are commended by the majority of MPs in attendance, congratulating on the achieved results and supporting the continuing work of the Commission.

In addition to President Dr Obradović, CPC Council members also attended the plenary session during which the 2018 Activity Report of the Commission was discussed – Čedomir Radojčić, Mirjana Mišković-Vukašinović and Dr Veljko Milutinović, as well as the heads of the Administrative and Professional Service of the Commission for Protection of Competition.

The Commission for Protection of Competition has conducted a dawn raid on business premises of companies SCLift2018 and Mikrolift in Babušnica.

The dawn raid was undertaken as part of antitrust investigations launched ex officio against said parties on concerns that the parties have been involved in bid rigging during a public procurement of lift repair services for the General Hospital Pirot. This act could represent a form of restrictive agreement under Article 10 of the Law on Protection of Competition.

The unannounced inspection of business premises, business files, evidence, documents and belongings was conducted with the assistance of the Police Force officers on reasonable grounds to believe that there is a risk of removal or alteration of evidence.

All persons in possession of the facts, documents or other relevant information that could contribute to the accurate fact-finding in this proceeding are invited to submit said evidence to the following address: Commission for Protection of Competition, 25/IV Savska St., Belgrade.

The Commission for Protection of Competition hereby publishes the Notice of the Commitment Proposal, pursuant to Article 58 of the Law on Protection of Competition, which company EPS Distribucija d.o.o. Beograd is voluntarily willing to undertake in order to remove potential infringements of competition, with a call to all interested parties to submit written objections, positions and opinions on the proposed commitments.

The Commission for Protection of Competition has opened a special telephone hotline and email address for all parties in possession of information and other available facts of alleged instances of infringement of competition occurring on individual markets in the Republic of Serbia.

Information on all details concerning the possibility and means of submission of initiatives for the opening of antitrust investigations can be obtained via email address inicijativa@kzk.gov.rs or by calling our helpdesk at 011 38 11 958
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Given that the Commission, pursuant to Article 35 of the Law on Protection of Competition, may also open an antitrust investigation procedure based on the received initiatives, we are hereby inviting and encouraging all parties in possession of information or facts of the existence of any kind of breach of competition, to contact the Commission and submit an initiative for the opening of antitrust proceedings before the Commission. The initiatives will be reviewed and handled by the Commission officials. The complainants will be informed of the outcome of the related initiative immediately following its handling. In all cases where antitrust proceedings based on submitted initiatives are launched by the Commission, the complainants are also entitled to be informed about the course of the investigation procedure.

IT IS IMPORTANT TO KNOW that the complainants do not have the status of a party in ex officio proceedings initiated on their initiative, but that their identity, as well as information considered to be a trade secret or other business sensitive data, may be protected pursuant to Article 45 of the Law on Protection of Competition.

Based on a conclusion enacted by the Commission President, the Commission for Protection of Competition has resumed proceedings ex officio in the matter of a merger which, according to the notification submitted by company Privredno društvo za proizvodnju hleba i peciva Don Don d.o.o. Beograd, is created by acquisition of direct individual control over a part of company Akcionarsko društvo za preradu žitarica Žitopromet, Zaječar.

The proceedings will be completed by the enactment of a decision within the statutory period of four months from the date of initiation of proceedings ex officio.

During the course of investigation procedure, the Commission will investigate whether the implementation of such concentration would significantly restrict, distort, or prevent competition on the market of the Republic of Serbia or its part, and especially if that restriction, distortion, or prevention would be the result of creating or strengthening of a dominant position.

The Commission will carry out all necessary actions, determine all facts and adduce evidence necessary for the definition of the relevant market, establish the structure of the relevant market, degree of concentration of the relevant market, and identify current and potential competitors, market position of the merger parities, legal and other barriers to entry into relevant markets, user interests, etc.

The Commission invites all persons in possession of data, documents or other relevant information that could contribute to the accurate fact-finding in this proceeding to submit said evidence at the earliest possible opportunity to the Commission, to the address 25/IV Savska St., Belgrade.

The Commission for Protection of Competition has established that Joint stock company for transportation services Niš-ekspres Niš has abused its dominant position on the bus station platform entrance market in the territory of the City of Niš, thus infringing competition rules from Article 16 of the Law on Protection of Competition.

As the Bus station Niš management company, Niš-ekspres a.d. has charged different prices for bus station services to passengers with various bus tickets, depending on the travel distance in km.

Furthermore, the Commission has established that company Niš-ekspres a.d. has also applied dissimilar business conditions with regard to persons purchasing platform tickets. They have been charged an amount that exceeded the highest amount of the bus station service fee charged with a bus ticket purchase covering the bus station platform entrance.

Niš-ekspres is ordered to pay the amount of 40,726,439.00 RSD into the Budget account of the Republic of Serbia as a measure for protection of competition, which corresponds to 1.3% of the aggregate turnover generated in the Republic of Serbia in the year preceding the launch of antitrust investigation proceedings.

President of the Commission for Protection of Competition Dr Miloje Obradović took part, with colleague Marija Antić, in the ordinary meeting of the Subcommittee on Internal Market and Competition, held in Brussels.

Dr Obradović provided a brief for the EC representatives on the progress reached within NG 8: Competition policy. The audience was also kept abreast of current events relating to the implementation of the Law on Protection of Competition and information on the Commission’s interim enforcement record, all of which are of particular importance in the context of ensuring a level playing field for all undertakings.

The Commission President also presented a detailed account of activities in connection with advancing knowledge of the general public on the importance of the culture of compliance with competition law.

- The Commission works intensely on raising awareness on the importance of competition policy in Serbia and insists on practices for the inclusion of all interested stakeholders when considering the overall needs for regulatory improvements aimed at ensuring the Commission’s operational transparency, said President Obradović during the Subcommittee meeting. – In the previous period, the Commission has increased its administrative and institutional capacities and remained focused on efficient and effective implementation of the Law towards ensuring more effective protection of competition in Serbia.

At the Subcommittee meeting regularly held as part of Serbia’s EU accession process is stated that our country follows the dynamics of EU competition policy development and strives towards the harmonization of its standards with respective EU standards to the extent possible.

That is also confirmed by the EC assessment in its recently published the 2019 Progress Report on Serbia, noting the progress in the number of detected cases of anticompetitive behaviors, increased number of sector inquiries and continued competition advocacy activities. However, the Report also references the need for intensified consultations with the Commission on all draft laws concerning competition.

The Commission for Protection of Competition of the Republic of Serbia has the administrative capacity, that is, qualitative experts to handle investigations on alleged infringements. The CPC’s investigations of large private and public companies have further contributed to improving its credibility and public image, says the 2019 EC Progress Report on Serbia, presented today at the Brussels headquarters of the European Commission.

In the Annual report covering the period from January 2018 to February 2019, it is mentioned that the Commission is the main institution responsible for implementing the legal framework governing competition, which is in line with all relevant provisions of the SAA and the acquis. The Report notes the progress in the number of detected cases of anticompetitive behaviors, increased number of sector inquiries and continued competition advocacy activities. However, the Report references the need for intensified consultations with the Commission on all draft laws concerning competition.

The activities of the Commission for Protection of Competition are reviewed in the said document under Negotiation Chapter 8: Competition policy.

The Commission for Protection of Competition of the Republic of Serbia has joined the group of authorities as founding members of the International Competition Network’s Framework for Competition Agency Procedures, aimed at fostering fair, informed and non-discriminatory procedures in competition law enforcement around the world and increased transparency.

New protocols of the International Competition Network agreed in early April this year are designed to streamline the enforcement procedures, while safeguarding procedural fairness and non-discriminatory approach of member countries towards ensuring that local competition rules afford national companies no less favorable treatment than the one granted to companies from other jurisdictions in like circumstances. The protocols are designed so as to ensure that respective competition authorities cannot rig outcomes in favor of privileged competitors, and in that manner put pressures on the economies of other countries.

The motive of the Commission to be among the founder members of new protocols of the International Competition Network was to send a clear message to all undertakings operating or planning to operate in the territory of the Republic of Serbia that this institution will continue to work in full respect of the principles of transparency and legal certainty of their investments, as regards the implementation of competition policy.