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.

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.