The experts from the French Competition Authority, Autorité de la concurrence, have held a two-day seminar designed to advance the efficiency of competition policy enforcement in Serbia via the exchange of experiences with peers from the Commission for Protection of Competition of the Republic of Serbia and representatives of other institutions interested in the area of competition law and policy.This seminar was organized by the Ministry of European Integration of the Republic of Serbia and the Embassy of the Republic of France in Belgrade, in line with the needs of the Commission.

In opening the event, Dr. Veljko Milutinović, member of the Council of the Commission for Protection of Competition of the Republic of Serbia, has welcomed the seminar participants.
In its address, Dr. Milutinović has underlined that “the Commission, after twelve years of operations, has gained a significant experience and its staff members have already accumulated a great body of knowledge, thus making it increasingly less needed to be educated and progressively more important to provide guidance to others. This, nevertheless, does not reduce the importance of such seminars. On the contrary, the transition to an interactive phase, which is a phase of an active exchange of knowledge and experiences, marks an important milestone for the Commission. In that respect, meetings of this kind are of vital importance.”

The lecturers from the French Competition Authority, An Krencer, Eliezer Garcia-Rosado and Marianne Kombalduire, have presented the new practical experiences of the France’s national competition regulator to the representatives of the Commission for Protection of Competition and the Ministry of Trade, Tourism and Telecommunications. This year’s topics related to the practical aspects of the relief or reduction from the commitment payment from measures for protection of competition, leniency program, collusive bidding in public procurements and dawn raids.
The cooperation between France and Serbia in the competition policy domain is implemented as part of the Serbia’s converging efforts in relation to the European practices and legislation implemented in the area relevant to the EU accession criteria, defined as: “sustainable market economy and capacity to cope with competitive pressure and market forces within the Union.”
This seminar is the continuation of cooperation between the two institutions, commenced with the first French-Serbian competition policy seminar held in October 2017.

The Commission for Protection of Competition has imposed a procedural penalty measure in the amount of 8,500 euro against undertaking „MIMO” d.o.o. Beograd, due to its failure to act on the Commission’s Request for the provision of information.

In the aforementioned request ordering the submission of data for the purpose of a proceedings for investigation of competition infringement instituted ex officio by the Commission against company Industrija smrznute hrane „Frikom” d.o.o., company „Mimo” was on two occasions warned of the consequences of omission in respect of the Commission’s order.
Taking into account that extended deadline for the submission of requested data has also been reached on August 25, 2018 and that said company failed to address the Commission with a request for the deadline extension or otherwise informed the Commission of the reasons not to act on the Commission’s Request for the provision of information, the Commission Council has enacted a decision on the procedural penalty measure.

Company „MIMO” d.o.o. Beograd is obligated to execute the penalty payment in the aforesaid amount within two months of receipt of the decision concerned, under the threat of enforcement measure. The amount set as a procedural penalty measure is paid into the Budget account of the Republic of Serbia.
Conducts contrary to the Commission’s orders, that is failures to act on its orders, are subject to the procedural penalty measures in the amount of 500-5,000 euro for each day of such conduct or omission, which is regulated by the provisions of Article 70 of the Law on Protection of Competition
.
When setting the amount of penalty payments, the Commission implements the criteria stipulated in the Law on Protection of Competition and the Regulation on criteria for setting the amount payable on the basis of measure for protection of competition and sanctions for procedural breaches, manner and terms for payment thereof and conditions for determination of respective measures, as well as in the Guidelines for implementation of the Regulation on criteria for setting the amount payable (…), enacted by the Commission Council on May 19, 2011.

The Law on Protection of Competition specifies that procedural penalty may not exceed 10% of the total annual revenue calculated in a manner stipulated by the Law. Also, procedural penalty measure does not release a party for the obligation to submit requested data, i.e. to act on the Commission’s requests.

Serbia has taken all necessary steps towards the full implementation of the Law on Protection of Competition. In order to further improve the efficiency of competition policy enforcement in Serbia, it is necessary to secure the expansion of capacities of the Commission for Protection of Competition – states one of the commentaries provided by experts of the Organization for Economic Co-operation and Development (OECD) in its regular report on competitiveness in South East Europe.

This publication provides a comprehensive assessment of economic performances and regional competitiveness in 17 fields, aimed to assist the Western Balkans countries in creating improved development policies. In the course of drafting this assessment, from early 2016 to the beginning of 2018, the OECD has cooperated with SEE countries, specifically with Serbia, Albania, BiH, Republic of Macedonia, Montenegro, in order to secure a facts-based analysis, which is a prerequisite for delivering support in the structural reform process.

The Commission for Protection of Competition of the Republic of Serbia took an active role in drafting this document.

The Commission for Protection of Competition has instituted ex officio proceedings for investigation of infringement of competition against 172 undertakings operating on the baby care products market. This is the seventh such proceedings opened this year against undertakings operating on the baby care products market.

As in the case of previous six proceedings instituted against undertakings operating on the baby care products market, the Commission has reasonably assumed that the seller and buyers of baby care products have set selling prices and other conditions of trade when arranging the cooperation. The reasonable assumption in this proceedings is based on the fact that the agreements concerned contain the provisions that fix resale prices. The provisions mentioned restrict buyers to independently and autonomously make business decisions relating to the respective pricing policies.

The Law on Protection of Competition defines restrictive agreements as agreements between undertakings which as their purpose or effect have a significant restriction, distortion or prevention of competition in the territory of the Republic of Serbia. They may have a form of contracts, certain contract provisions, express or tacit agreements, concerted practices, as well as decisions made by associations of undertakings, which directly or indirectly set the purchase or selling prices or other conditions of trade.
The Commission believes that the baby care products market is of utmost importance for consumers, as well as for the society as a whole and, for that purpose, all instituted proceedings relating to this market are considered to be of primary importance for the Commission which works intensively on a sector inquiry into the overall baby equipment market, the results of which will be presented to the general public.

All persons in possession of data, documents or other relevant information which could contribute to the accurate fact-finding in the proceedings concerned are called upon to submit said to the Commission for Protection of Competition, 25/IV Savska St., Belgrade.

The Commission for Protection of Competition has instituted ex officio proceedings for investigation of infringement of competition on the payment card market against MasterCard payment organization, comprised of companies МasterCard Incorporated, 2000 Purchase Street, Purchase New York 10577, USA; MasterCard International Incorporated, 2000 Purchase Street, Purchase New York 10577, USA; and, MasterCard Europe S.p.r.l, Chaussee de Tervuren 198А, В-1410 Waterloo, Belgium (hereinafter, MasterCard).

The Commission has reasonably assumed that MasterCard, as an association of undertakings on the market of the Republic of Serbia, sets fallback interchange fees in an unfair amount, implemented by MasterCard bank members in the territory of the Republic of Serbia, which are several times higher than those implemented in EU countries.

Considering the fact that interchange fees determine a floor for the price which merchants must pay as a service charge for accepting payment cards to banks, the Commission has reasonably assumed that the competition between acquiring banks is in such manner restricted, which are prevented from negotiating the amount of merchant service charge below the interchange fee. That in turn may affect the consumers if merchants pass on such merchant fees to all consumers through higher retail prices, making products or services more expensive irrespective whether the payment is made by using payment cards or in cash, and potentially adversely affecting the competition on the payment card issuing market in the territory of the Republic of Serbia considering the banks’ incentive to offer payment cards that yield the highest interchange fee revenues.

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

The organizers of this year’s annual international conference hosted by ACE, Association of Competition Economics, have selected the case conducted by the Commission for Protection of Competition of the Republic of Serbia concerning the edible sunflower oil production and sales market as a representative competition case to be presented to participants of this renowned event.

The conference gathering competition economists from around Europe will take place in Bologna (Italy), mid-November this year. The CPC case was selected among dozens of nominated antitrust cases. One of the selection criteria was that the case illustrates certain advances in the use of economics in competition enforcement or to be of particular interest to competition economists.

The Commission for Protection of Competition of the Republic of Serbia sees the news on the selection of this competition case as additional acknowledgment for results achieved in advancing economic expertise during the last couple of years, reflecting on the quality of its decisions.

Since its creation in 2003, ACE’s main activity has been an annual conference bringing together competition economists. This year’s conference is expected to bring together numerous representatives of European competition authorities, reputable consulting companies and academia, working to exchange related experiences in assessing the effects of operational activities of competition authorities.

President of the Commission for Protection of Competition, Dr. Miloje Obradović, has met today with Ambassador of Japan to Serbia, H.E. Junichi Maruyama. Dr. Obradović shared his ideas with H.E. Maruyama on the possible extension of excellent cooperation established between the Commission for Protection of Competition of the Republic of Serbia and the Embassy, but also with the Japanese competition authority, JFTC.

Ambassador Maruyama also welcomed qualitative cooperation built with the Commission for Protection of Competition and intensified exchange of experiences achieved between the competition authorities of Japan and Serbia. In support of that, the interlocutors have recalled the previously organized two-day seminar held in Belgrade, where renowned Japanese experts spoke on the issue of current and future challenges of Japan in fighting cartels and bid rigging, in addition to the seminar held in Tokyo, attended this year also by a staff member of the Commission for Protection of Competition of the Republic of Serbia.

H.E. Maruyama has informed President Obradović on antitrust cases which recently have been the focus of attention of the Japan Fair Trade Commission, as well as on anticipated case-related effects affecting the improvement of competition policy in Japan.

President of the Commission for Protection of Competition Dr. Miloje Obradović has met with Minister of State Administration and Local-Self Government of the Republic of Serbia Branko Ružić.

The main meeting topics related to the possibilities of enhancing cooperation aimed to underpin the quality of operations of public administration in the Republic of Serbia, enabling further improvements to the business environment, level playing field for all undertakings, economic stability of Serbia and a rise in the standard of living of citizens.

Dr. Obradović has also presented the Commission’s operations to date and future plans to Minister Ružić on the occasion, particularly those concerning the improvement of the legislative framework governing competition policy, implemented foremost in light of improving business conditions for all business entities in the Republic of Serbia.

A meeting between authorized CPC representatives and members of the Independent Association of Farmers of Serbia took place today in the Commission for Protection of Competition.

Representatives of the Independent Association of Farmers of Serbia have presented their views on the relation of oil producers towards sunflower farmers. With regard to the issues presented, IAF representatives have been informed that the Commission, in cooperation with other state institutions, will act in accordance with competences entrusted to it by the Law on Protection of Competition.

The Commission for Protection of Competition has instituted four new in-depth antitrust investigation proceedings against ten undertakings operating on the baby care products market, based on reasonable doubt that the parties have concluded restrictive agreements in order to fix prices of baby care products in further sale (such as pacifiers and dummies, soothers and teethers, baby bottles, milk pumps, baby cosmetics, textile, etc.).

The ex officio proceedings instituted to establish the infringement of competition concern the following companies: Yuglob doo Beograd, Keprom doo Beograd, Aksa doo Beograd, „K-Pharma“ HI Pharmacy from Beograde and HI Pharmacy Kraljevo, as well as pharmaceutical wholesalers, companies Farmalogist doo Beograd, Vega doo Valjevo, Lekovit doo Šabac, Medicom doo Šabac and NS Pharm doo Novi Sad.

Note that already in April 2018, the Commission for Protection of Competition has instituted two in-depth investigation proceedings in order to establish potential infringements of competition on the baby care products market.

The Commission for Protection of Competition believes that the baby care products market is of utmost importance for consumers, as well as for the society as a whole, and uses this opportunity to remind the public that in addition to the mentioned investigation proceedings, the Commission is conducting a sector inquiry into the entire baby equipment market, the results of which will be presented to the general public.

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