President of the Commission for Protection of Competition, Dr. Miloje Obradović, received a visit from Ambassador of the Republic of Korea to Serbia, H.E. Dae Jong Yoo.

Dr. Obradović introduced Ambassador Yoo with competences of the Commission for Protection of Competition and presented activities implemented up to date, along with plans aimed at advancing and advocating competition policy in Serbia.

President of the Commission also expressed an aspiration that the Embassy of the Republic of Korea in Belgrade would be able to convey a substantial interest of the Commission for Protection of Competition of the Republic of Serbia for intensification of cooperation with the Korea Fair Trade Commission, as one of the most efficient competition enforcement agency in the world.

Korean Ambassador thanked for the invitation and suggested initiation of a concrete cooperation, implemented by hiring an expert from the Korean competition authority to give competition policy related presentations during the workshop organized in Belgrade by the end of this year.

Also, His Excellency expressed a pleasure concerning instituted initiative of the Commission for Protection of Competition that might result in a more intensive cooperation and exchange of experiences between two authorities, with the objective of advancing economic environment in Serbia.

Ministry of Trade, Tourism and Telecommunications, as the authorized legislator, and the Commission for Protection of Competition have instituted drafting of the new regulation governing competition policy. Following drafting procedure, and in the same manner as when preparing the Regulation on the content and manner of submitting notification on concentration, the Commission will call all interested parties to submit related proposals and suggestions, so that new legal solutions could be even more approximated, not only to the EU acquis, but adjusted to the specificities of markets operating on the territory of the Republic of Serbia. The Commission expects cooperation with the academic and expert public, as well as business community representatives in the widest sense of the word, including law offices and undertakings. In this respect, the Commission expresses its familiarity with the content of statements from the document written in English language “Call to action – Protection of free competition”, prepared by an individual law office and the Association for Protection of Constitutionality and Legitimacy. Although the purpose of this notice is not to debate with the authors, but to announce drafting of the new law, however, considering that occurrence of this document coincides with the initiation of new legislative drafting, and given that mentioned text contains incorrect and blanket statements on the Law on Protection of Competition and work of the Commission, it is assessed that toward proper informing the public, it is necessary to react with regard to particular statements. The above-mentioned document assesses the work of the Commission as arbitrary, without judicial control, with particular acts taken during the proceedings characterized as the breach of basic human rights, while the Law per se is evaluated as unconstitutional, thus the call-to-action relates to its abrogation and need to enact new regulation that would be constituted under the Constitution. Without prejudice to interpret provisions of the Code of Professional Ethics for Attorneys-at-law, the Commission nevertheless reminds that the aforementioned Code, inter alia, determines that the manner in which an attorney at law communicates with the state authorities reflects the legal culture and respect for the legal profession, and that in the context of this relation, attorney-at-law should communicate in a temperate and polite manner. The aforementioned Code also determines that written motions and oral addresses should be clear, concise, appropriate and logical, while any criticism an attorney-at-law addresses to the court, other state authorities and representatives thereof must not be communicated in an inappropriate or offensive manner. Considering the aforementioned aspects, and toward preserving the reputation and standards of professional conduct, the Commission will address the Bar Association of Serbia with the request to assess infringement of the Code. The Commission is not surprised by the fact that authors refer to the abrogation of the Law on Protection of Competition as unconstitutional, as such attempts are not new, however, the manner in which such presentation is given, is perceived as inappropriate in every aspect.

We are also informed on the submission of the related document to undertakings which, if insufficiently familiarized with the Law on Protection of Competition and work of the Commission, could be mislead as to the competencies and authorities of the Commission, in addition to the rights stipulated by the Law.

Finally, regardless of the initiative claiming that future amendments to the Law on Protection of Competition will further consolidate “existing unconstitutional provisions”, which we assess as absolutely unacceptable, and in the light of previous positive experiences, the Commission expects to establish cooperation with all interested parties during the legislative drafting process pertaining to the new law on protection of competition.

Representative of the Commission for Protection of Competition Vladimir Antonijević, Senior Advisor in the Competition Infringements Division, has attended a three-week professional development program in Japan, provided by the Japan International Cooperation Agency – JICA in cooperation with the Japan Fair Trade Commission – JFTC.

The objective of this professional development seminar was to advance the implementation of competition law and policy, in addition to enabling the use of acquired know-hows toward more efficient promotion of competitive environment on the markets of program participating countries. The professional development program has encompassed all segments of competition law and policy, including both theoretical and practical implementation.

This year’s professional development program has gathered 22 representatives of competition authorities from 17 countries, while JICA has organized this type of seminars since 1994.

Commission for Protection of Competition has organized for the first time, a summer internship program intended for competition policy-related professional development of graduate and postgraduate students of law and economic studies from Universities of Belgrade, Kragujevac and Niš.

A series of lectures and workshops will be held during the internship program, enabling students to familiarize with competences and working methods of the Commission, gain basic knowledge on competition infringement detection methods, market concentration investigation methodology and preparation of economic inquiries, along with other operational aspects of this institution, including cooperation with other national competition authorities, international and domestic organizations, as well as competition advocacy tools used by the Commission.

It is expected that initiation of student internship program implementation in the Commission will contribute to raising levels of students’ competition policy theoretical knowledge and related practical implementation, as well as for the promotion of competition policy in the academic community.

Internship program enabling professional development and practical training of students in the competition policy and law area will be implemented throughout the month, and is organized pursuant to previously signed memoranda on cooperation between the Commission and aforementioned institutions.

Internship program is organized and headed by dr Siniša Milošević, Head of Economic Analysis Division.

Based on submitted information, the Commission for Protection of Competition has instituted proceedings ex officio for investigating concentration created by acquisition of individual control on the part of company „Prointer IT Solutions and Services“ LLC Beograd, over company “Alti” LLC Čačak.

In the course of investigation procedure is established that the concentration is implemented without received prior approval of the Commission, thus violating the Law on Protection of Competition, and consequently resulting in determining measure for protection of competition against company „Prointer IT Solutions and Services“ LLC in the amount of 6.7 million dinars.

When determining the amount of related measure, the Commission has considered that said concentration would not cause adverse consequences and would be approved, if notified pursuant to legal obligation.

Member of the Council of the Commission for Protection of Competition, Marko Obradović, and Dean of the Faculty of Economics in Niš, Prof. dr sc. Jadranka Đurović Todorović, have signed the Memorandum on Cooperation between the Commission for Protection of Competition and the Faculty of Economics in Niš.

Memorandum on Cooperation defines the establishment of expert and educational cooperation between these two institutions in the competition policy area via organization of seminars, guest lecture series of the Commission’s experts, joint thematic workshops at the Institute of the Faculty of Economics in Niš, establishing academic internship programs and joint publishing activities in the competition policy area.

Signed document will enable joint activities to be placed on the promotion of competition policy and raising awareness of its significance within the academic and broader general public, to be achieved in cooperation with the Business Cooperation Center of Niš, in addition to introducing an academic course in the field of competition policy as an elective for Masters level students.

Memorandum on Cooperation with the Faculty of Economics in Niš is the fourth such agreement of the Commission signed with the academic community representatives.

Commission for Protection of Competition hosted a delegation of the Federal Antimonopoly Service of the Russian Federation in a three-day Study visit. FAS delegation, comprised of Ms. Elena Vladimirovna Beresneva, Advisor in the Department for Control over Chemical Industry and Agro-industrial Complex, and Ms. Julia Alekseyevna Haptaeva, Head Advisor in the Organizational and Analytical Department of the FAS Buryatia Regional Office, has been introduced with the organizational and operational structure of the Commission.

In the course of the Study visit, a series of lectures and workshops has been held during which employees of the Commission have shared experiences in regard to operational activities in detecting competition infringements, investigating market concentrations and preparing economic inquiries. Particular attention was placed on presenting proceedings that the Commission has conducted during the previous period, mainly concerning cases of prohibited agreements and abuses of dominance, as well as their influence on achieving equal conditions for all undertakings on specific markets. Also, cases of investigation proceedings conducted during the previous period by the Competition Infringements Division have been presented, in addition to the findings of economic inquiries, as well as operational plans of the Economic Inquiry Division.

This is the second Study visit of the FAS representatives to the Commission, organized pursuant to the Agreement on Cooperation signed during 2012 between the Federal Antimonopoly Service of the Russian Federation and the Commission for Protection of Competition of the Republic of Serbia. In accordance with the above-mentioned Agreement, seminars and training courses have been previously organized in the FAS Training Center in Kazan for the Commission Administrative and Professional Service staff, in addition to the previous year’s Study visit of the Russian colleagues in Serbia.

The visit is estimated as an outstanding manner of achieving bilateral cooperation between competition authorities and extremely useful tool towards accomplishing the exchange of experiences between employees of the Commission for Protection of Competition of the Republic of Serbia and the Federal Antimonopoly Service of the Russian Federation.

President of the Commission for Protection of Competition, Dr. Miloje Obradović, received a visit of the Ambassador of the State of Israel to the Republic of Serbia, H.E. Alona Fisher Kamm.

Dr. Obradović introduced Ambassador Fisher Kamm with competences of the Commission for Protection of Competition and presented activities implemented to date, along with plans aimed at advancing and advocating competition policy in Serbia.

President of the Commission also expressed a desire for the Embassy of Israel in Belgrade to convey a substantial interest of the Commission for Protection of Competition of the Republic of Serbia to intensify cooperation with the Israeli competition authority, as one of the most developed and organized in the world.

Israeli Ambassador thanked for the invitation and emphasized that the role of the Embassy of Israel in Belgrade is foremost, to facilitate position of the current and attract new Israeli investments in Serbia. Also, Her Excellency expressed a pleasure concerning instituted initiative of the Commission for Protection of Competition that might result in a more intensive cooperation and exchange of experiences between two authorities, with the objective of advancing economic environment in Serbia.

During the last year, the Commission for Protection of Competition has conducted the Sector Inquiry on Competition Issues in Aftermarkets (Serbian version only). These markets encompass, inter alia, provision of guarantees, repair services, turnover and use of spare parts for motor vehicles and best-selling home appliances – refrigerators and washing machines.
The main goal of this inquiry was to establish the structure and relations between undertakings, their market shares and market power, with the objective of detecting potential market vulnerabilities, that is, existence of conditions leading to the infringement of competition.

Since the adoption of this document and introduction of the general public with its findings, the Commission has been intensively involved in additional reviewing of this document, in the context of existence of potential competition infringements effected by undertakings operating in these sectors.

To this effect, the Commission came to certain findings that necessary may not mean that particular acts performed on these markets by a part of undertakings are considered to be prohibited, but that may pose a threat to competitive behavior and present endangerment of equivalence of all undertakings on the said markets.

The Commission formulated derived findings in the following documents – Information of Findings and Positions of the Commission regarding the Motor Vehicles Aftermarkets Inquiry, and Information of Findings and Positions of the Commission regarding the Home Appliances Aftermarkets Inquiry.

In these documents, the Commission has in more details elaborated on particular elements of business operations performed on the part of undertakings operating in the motor vehicles and home appliances aftermarkets, and expressed the concern due to the specific segments of contractual relations between undertakings that may indicate to potential competition infringements.

The Commission forwarded these findings to competent state authorities, business associations, as well as undertakings operating in the motor vehicles and home appliances aftermarkets, in order to forewarn them of the possibility of becoming the subject of the Commission’s proceedings in the case of failing to amend certain segments of agreements arranged with their suppliers or dealers.

On May 29, 2017, the Commission for Protection of Competition has instituted proceedings for investigating competition infringement ex officio against Frozen Food Industry “Frikom” LLC Belgrade, on the grounds of determining the existence of abuse of dominance on the ice cream distribution and sale markets. On the following day, May 30, 2017, authorized officials of the Commission have carried out a dawn raid in the premises of “Frikom” company.

Namely, by implementing legal competences concerning the use of an instrument that is found to be extremely efficient in detecting various forms of competition infringements, authorized officials of the Commission have carried out a dawn raid in “Frikom” LLC, and on the occasion performed an inspection of business premises, i.e. data, documents and belongings in two locations in Belgrade, whereby the party concerned and proprietor of premises and belongings have been informed on the matter only when the dawn raid was taking place.

Dawn raid is an instrument available to the Commission for Protection of Competition, pursuant to Articles 52 through 55 of the Law on Protection of Competition with the objective of detecting and preventing acts or actions of undertakings that as their purpose or effect have or may have a significant restriction, distortion, or prevention of competition.

Considering that the proceedings is only recently instituted, and that dawn raid is just one of the manners in which the Commission can collect necessary evidence, all persons in possession of data, documentation or other relevant information that might contribute to the fact-finding in this proceedings are called upon to submit the said to the Commission for Protection of Competition to the address: 25 Savska St., Belgrade.