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”.

On November 17, 2017, the Commission for Protection of Competition instituted proceeding for investigation of competition infringement ex officio against A.D. Niš – ekspres from Niš.

During the proceeding, the Commission will investigate whether the said company, as a sole managing party of a bus station in Niš, has abused its dominant position by charging various prices for passenger bus station services.

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 address: Commission for Protection of Competition, 25/IV Savska St., Belgrade.

President of the Commission for Protection of Competition Dr. Miloje Obradović received a visit today from President of the Competition Council of Bosnia and Herzegovina Ivo Jerkić.

Topics of discussions related to the exchange of experiences from the area of regulatory framework and implementation of competition policy, in addition to the advancement of further cooperation between two institutions through the means of exchanges of experts, study visits, organization of joint seminars and workshops, as well as by drafting joint economic and legal analyses.

Also, the two parties discussed the initiative for establishing the Western Balkans Competition Forum and its importance for further advancement of regional cooperation between competition authorities. Collocutors agreed on the Forum’s advancement of cooperation between national authorities of the Western Balkan countries, which will considerably facilitate their future operations, convergence of practices and procedures, but also enable improvement of institutional and regulatory competition policy frameworks in the region.

The meeting was also attended by members of the BiH Competition Council – Arijana Regoda Dražić and Nebojša Popić, as well as members of the Commission’s Council – Mirjana Vukašinović, Čedomir Radojčić, Marko Obradović and Dr. Veljko Milutinović.

The Commission for Protection of Competition of the Republic of Serbia and the Competition Council of Bosnia and Herzegovina have signed the Memorandum of Mutual Understanding and Cooperation in the field of competition policy and law in 2009.

President of the Commission for Protection of Competition Dr. Miloje Obradović held an introductory lecture at the Conference “Competition and Competitiveness”, traditionally organized by Karanović & Nikolić Law Firm and German foundation Friedrich Naumann.

This year’s conference focused on various experiences in the implementation of competition law and policy in the context of Serbia’s accession to the EU, state aid control, division of competences in various countries’ practices pertaining to the competition law and policy, such as Austria and BiH, as well as the competition law compliance policy of companies operating on the Serbian market.

On the occasion Dr. Obradović underlined, inter alia, that in the forthcoming period the Commission will be focused on even more intensified regional cooperation, and announced the possibility of establishing the Western Balkans Competition Forum, with headquarters in Belgrade. Also, advancements in the protection of rights of undertakings will remain to be the focus of activities, in addition to the advocacy and promotion of the competition policy notion, or respectively the excretion of influence on legislative and executive power and other various policy makers impacting the state of competition on the national market.

The President of the Commission for Protection of Competition underlined that in consideration of not yet finished transitional period, along with the still ongoing privatization process, it is necessary to continue with sector inquiries and market analysis in order to detect respective structures and interrelations.

“What do we expect in the future: tradition – to continue with our existing path, trust – to carry on building it through our work, transparency – via consistent implementation in proceedings, predictability for undertakings, and organic growth and strengthening of the institution”, said President Obradović in his address.

One of the Conference’s panelists was Dr. Veljko Milutinović, member of the Council of the Commission for Protection of Competition of the Republic of Serbia, addressing the attendees on the future of competition policy in Serbia in the light of drafting the new Law on Protection of Competition.

The Conference was attended by H.E. Axel Dittmann, Ambassador of the Federal Republic of Germany to Serbia; Andrijana Đurčić, President of the Commission for State Aid Control, Radica Nusdorfer, Head of the Economic and European Integration Section at the EU Delegation to Serbia, and Ivo Jerkić, President of the Competition Council of Bosnia and Herzegovina and Sonja Kovač, company lawyer at Heineken Serbia.

The Commission for Protection of Competition of the Republic of Serbia was given a special honor this year of being the “Guest Host” at the Annual Conference “Competition 2.0” of the Romanian Competition Council, held in Bucharest. The main topics of the Conference related to the competition issues in telecommunications, media, online trade and other markets within the “New Economy”.

President of the Commission for Protection of Competition Dr. Miloje Obradović, heading the Serbian delegation, in his keynote paper adverted attention to the need of competition authorities to perceive challenges in implementing competition policies due to the rapidly changing business surroundings where all competition authorities operate. During the closing session of the Conference Dr. Obradović summarized conclusions of two, exceptionally successful panel discussions.

In addition to the Commission President, member of the Commission’s Council Dr. Veljko Milutinović accomplished a notable participation at the Conference, with an active role in the Conference panel discussion dedicated to the new tendencies in telecom markets and their impact on competition. The CPC delegation also comprised of Nina Vasić, Senior Advisor in the International Cooperation Division.

The Conference was attended by numerous representatives of the Government of Romania, National Assembly of Romania, European Commission, OECD, Romanian regulatory authorities, academic community, international organizations and associations of undertakings.