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.

President of the Commission for Protection of Competition of the Republic of Serbia Dr. Miloje Obradović and Goran Petrović, Deputy Chairman of the Council of the Regulatory Authority for Electronic Media, signed the Cooperation Agreement between the two institutions.

The implementation of this agreement creates potentials for more intensive cooperation between the Commission, as an autonomous and independent organization performing public competences in accordance with the Law on Protection of Competition, and the REM, as an autonomous and independent regulatory organization performing public competences in accordance with the provisions of the Law on Electronic Media, with a view to protect public interest and strengthen the integrity of these authorities.

The agreement stipulates continuous exchange of information and data, as well as bringing into accord of positions on issues of common interest, in addition to the joint involvement in policy recognition-related activities implemented by the Commission and REM.

The Commission’s cooperation with institutions with whom agreements on cooperation were signed in the previous period is established as extremely beneficial, foremost in terms of data exchange potentials, but also in the context of exchange of positions on all current topics or proceedings conducted before the Commission or other authorities and institutions.

The Commission for Protection of Competition established that companies „MIP-RŠV“ from Ćuprija, „Inter-mehanika“ from Skorenovac, „Tatravagonka bratstvo“ from Subotica and „Šinvoz“ from Zrenjanin have infringed competition by bid rigging in the public procurement procedure – Arbel type freight cars maintenance, published by the ordering party „Termoelektrane Nikola Tesla“ (TENT).

In the proceeding conducted ex officio, the Commission established that these companies have agreed on price fixing in a bid rigging scheme. Thus they have concluded a special form of restrictive agreement within the meaning of Article 10, paragraph 1 and 2, item 1) of the Law on Protection of Competition.

The objective of “collusive tendering” was for each bidder to generate maximum profits from the operation by offering a pre-agreed lowest price, risk-free from not winning the lot in tendering procedure with other participating bidders or from a necessity to offer considerably lower price from the collusively agreed one needed to win the bid.

The consequence of such agreement between competitors – bidders in regards to the offered price was to eliminate mutual competition, causing TENT to pay over the odds for the related procurement vis-à-vis the real competitive conditions, withal causing detrimental effects on the Budget of the Republic of Serbia.

The Commission established the existence of restrictive agreement both based on economic indicators such as statistical data and offered prices analysis in addition to the identification of structural market indicators, and on the intelligence collected during a dawn raid and in other manners, as well as based on derived and substantiated evidence confirming the indication of existing agreement between these four bidders.

The Commission imposed monetary fines as a measure for protection of competition to the said companies, specifically in the amount of RSD 2,320,480.00 to company „MIP-RŠV“, RSD 1,475,000.00 to company „Inter-mehanika“, RSD 2,138,900.00 to company „Tatravagonka bratstvo“, and RSD 4,975,020.00 to company „Šinvoz“.

The Commission assessed that the parties have cooperated with the Commission throughout the entire investigation procedure towards faster, more efficient and cost-effective termination of the proceeding, which is taken as a mitigating circumstance when establishing the final amount of a measure for protection of competition.

The said companies are obligated to execute payments in the above-mentioned amounts to the Budget account of the Republic of Serbia within three months period.

The Commission for Protection of Competition established the infringement of competition and imposed a measure for protection of competition against 15 undertakings operating on the sports clothing, footwear and equipment wholesale and retail markets.

It is established that undertakings „N SPORT“, „PREDUZEĆE ĐAK“, „OFICCE-SHOES“, „PLANETA SPORT“, „CARVEL“, „SPORTMARKET“, „TOTAL SPORT“, „SPORTIKO“, „UNIVERS-CO“, „EUROSTAR“, „TRIM DOO VRBAS“, „K..G…FASSHION“, „KOPELLI“, „STR FOKUS“ and „KOMISION SPORT ONE“ have concluded restrictive agreements – agreements of purchase and sale containing provisions that regulate prices in further sales, which represent the infringement of competition from Article 10 of the Law on Protection of Competition. The Commission established that certain provisions of concluded agreements represent a mutually agreed commitment that in a prohibited manner regulate prices and conditions of trade.

On August 18, 2016, the Commission carried out a dawn raid at the business premises of company “N-SPORT” and collected information, data and agreements concluded by this company with its buyers.

In accordance with the collected information and documents, company “N-SPORT”, acting as a seller, concluded agreements of purchase and sale with other undertakings, containing buyer’s commitment to maintain minimum retail prices in further sales established by “N-SPORT”. This commitment particularly related to brands PUMA, RUSSSELL ATHLETIC, SERGIO TACCIHINI and others. Also, agreements envisaged the prohibition of sales promotions and other forms of favorable sales without prior approval of the seller, i.e. “N-SPORT”.

The measure for protection of competition is imposed in the total amount of RSD 45,279,975.78, and specifically for: „N SPORT“ – RSD 16,525,732.75, „PREDUZEĆE ĐAK“ – RSD 15,850,569.60 „OFFICE-SHOES“ – RSD 2,705,138.00, „K… G… FASHION” – RSD 459,256.00, “SPORT ONE” – RSD 99,648.00, „TRIM“ – RSD 82,336.00, „CARVEL“ – RSD 1,307,906.00, „EUROSTAR“ – RSD 69,644.88, „STR FOKUS SNEŽANA ZLATKOVIĆ KOSTOV PR“ – RSD 44,263.37, „SPORTMARKET“ – RSD 44,202.00, „UNIVERS-CO“- RSD 2,776,959.18, „TOTAL SPORT“ – RSD 25,626.00, „KOPELLI“ – RSD 31,402.00, „SPORTIKO“ DOO – RSD 127,050.00 and „PLANETA SPORT“ – RSD 5,212,578.00, required to be executed in favor of the Budget account of the Republic of Serbia within six months period.

Delegation of the Commission for Protection of Competition headed by President Dr. Miloje Obradović visited the Competition Council of Bosnia and Herzegovina, seated in Sarajevo, following the invitation of BiH Council President Ivo Jerkić.

The main discussion topics related to bilateral cooperation in the field of competition policy implementation and exchange of experiences between two authorities in the EU integration processes of Serbia and Bosnia and Herzegovina.

The meeting served as a platform for continued discussions on the modalities of initiative for establishing the Western Balkans Competition Forum, co-instigated with the EBRD by the Commission for Protection of Competition, as well as on the importance of such form of organizing in an attempt to further enhance regional cooperation between competition authorities.

Also, the parties touched upon the specific manners of expanding cooperation defined in the Memorandum on mutual understanding and cooperation in the field of competition policy and law, signed in 2009.

This visit followed upon the Belgrade meeting between two authorities’ delegations held in November 2017, evidencing on the high degree of cooperation achieved between these two institutions and willingness to jointly invest efforts into advancing institutional and legal frameworks of competition policy in the region.

The meeting was also attended by the BiH Council members – Arijana Regoda Dražić, Adisa Begić and Nebojša Popić, as well as Special advisor in the Competition Infringements Division of the CPC Gordana Lukić.

The Commission for Protection of Competition and the Embassy of the Kingdom of Norway in Belgrade signed the Grant Agreement funded by the Norwegian Ministry of Foreign Affairs for the implementation of project “Increasing economic growth through support to promotion of competition policy”.

The Grant will be utilized for strengthening capacities of the Commission in implementing competition policy, while the planned effect is the advancement of its operating capacities and raising the level of awareness on the competition policy in Serbia.

The Project comprises of three segments which will be implemented through organizing promotions of solutions from the Draft Law on Protection of Competition with the objective of preparing a legislative proposal in as qualitative manner as possible, via increasing detection rate of competition infringements, as well as by raising the level of competition culture and awareness among key stakeholders in Serbia. The Agreement stipulates the project implementation period of 24 months, executed during 2018 and 2019.

In May 2017, the Norwegian Embassy in Belgrade published a call for submitting proposals for project “Strengthening EU integration in Serbia and Montenegro”. The overall goal of Norway’s assistance to the Western Balkans is to contribute to development of rule of law and stability through initiatives that promote stability, that is to say closer regional cooperation and implementation of transitional justice in the region, socio-economic development achieved through the increased economic growth and competitiveness, increased capacity in the field of environment, climate and energy, in addition to the increased social and economic inclusion of marginalized groups. The objectives of Norwegian assistance to the Western Balkans are also strengthening of the rule of law through capacity-building of courts, prosecuting authorities, independent control bodies and the police, a more democratic and effective defense sector, and also the fight against organized crime and corruption established as a top priority for the authorities.

This call of the Norwegian Embassy also aims to provide project-based support within the three priority areas of Norwegian development assistance to Ministries, local governments and public institutions participating in promoting and enhancing EU integration of Serbia and Montenegro. The proposed action must contribute to Serbian and Montenegrin EU integration process in one or more of the following chapters: Chapter 5: Public procurement; Chapter 8: Competition policy; Chapter 23: Judiciary and fundamental rights; Chapter 24: Justice, freedom and security; Chapter 27: Environment (for Montenegro only); Chapter 32: Financial control; and, Chapter 35: Other issues – Normalization of relations between Serbia and Kosovo (for Serbia only). The proposed activities must take place in Serbia and/or Montenegro.

Delegation of the Commission for Protection of Competition headed by President Dr. Miloje Obradović participated at the International Conference on “13 years’ competition policy working experience in Albania, legal aspects with regard to the economy and business operations; learning through work and international cooperation”, held in Tirana.
President Obradović also participated as a panelist of one conference session, together with competition authority representatives of Austria, Romania and Albania, discussing on the modalities of prospective cooperation in competition policy.

On the occasion, Dr. Obradović pointed that when considering modalities of cooperation in the implementation of competition policy, one must be aware that the said is defined by increasingly more intensified changes occurring in the economy. Towards advancing, foremost regional cooperation, the Commission for Protection of Competition of the Republic of Serbia instigated an initiative for establishing the regional Western Balkans Competition Forum headquartered in Belgrade, to be sponsored by the European Bank for Reconstruction and Development.

“Regional cooperation achieved through the Forum would additionally increase capacities and impact the coordination of practices between regional competition authorities, and also expand possibilities for public advocacy activities relating to the competition policy of all regional competition authorities” – said President Obradović during the discussion with colleagues from other competition authorities.

The Conference was attended by the Republic of Albania Government members and Parliament MPs, in addition to the US Justice Department, OECD, UNCTAD and other representatives of international organizations and expert public.

The Commission delegation also comprised of Council member Marko Obradović, and Senior Advisor in the International Cooperation Division Nina Vasić, LL.M. who also partook in the panel on “Legal aspects of competition law and future challenges in the EU integration process”.