Commission for Protection of Competition enacted a decision finding that companies „Bora Kečić – Special transports LLC Belgrade” and „Large transport LLC Belgrade” have agreed on individual participation in the public procurement procedure tendered by the PE “Electro network of Serbia”. By concluding the restrictive agreement they have significantly restricted and distorted competition, and in that sense, the Commission enacted a pecuniary measure to the above-mentioned companies in the amount of RSD 9,792,225.00 and RSD 1,039,300.00 to „Bora Kečić – Special transports LLC Belgrade” and „Large transport LLC Belgrade”, respectively. The said companies are obliged to effect the payment of the aforementioned amounts into the budget of the Republic of Serbia within the deadline of three months.

In the proceeding conducted ex officio, the Commission determined that these companies have agreed on tender pricing, in addition to behavior taken during the conduct of public procurement in relation to offers provided by other bidders. In that sense, the Commission determined the occurrence of competition infringement pursuant to Article 10(2/1) of the Law on Protection of Competition. The objective of “rigged bid” was to eliminate the risk of potentially more favorable bid, to secure that companies „Bora Kečić“ and „Large Transport” in the respective public procurement be elected as the most advantageous bidders, and to acquire a gain higher than the one achieved under the conditions of a free and fair competition

Pursuant to the Decision of the Council and Article 47 of the Law on Protection of Competition, the Commission for Protection of Competition conducted the insurance market competition inquiry in the Republic of Serbia for the period 2012-2015.

The main objective of this inquiry is to determine the market structure and relations between main competing parties, their market shares and relevant power. Additionally, the objective of this inquiry is detecting possible market weaknesses that might create conditions causing competition infringement.

Working group comprising representatives of the Commission, National Bank of Serbia, Ministry of Finance and Ministry of Trade, Tourism and Telecommunications will be established in the coming period, formulating a Draft regulation on conditions for group exemption of agreements in the insurance sector, whereby the European regulatory rules and specifics of the insurance sector in Serbia shall be taken into consideration, which are presented in the Report via conclusions and recommendations of the conducted insurance market sector inquiry.


The Commission takes this opportunity to express appreciation to the National Bank of Serbia and all undertakings for submitting requested data for the purpose of this sector inquiry.
The full sector inquiry report, including conclusions and adopted recommendations is published honoring the requests of business entities for protecting data considered as a trade secret.

All undertakings and other expert public are hereby called upon to submit their comments in reference to the Report, no later than February 28, 2017, email: office.kzk@kzk.gov.rs, with the remark: Comment to the insurance market sector inquiry.

On 23 December the Council of the Commission for Protection of Competition adopted a decision finding that the national electricity distribution system operator EPS Distribution LLC Belgrade abused its dominant position as the sole operator on the market for electricity distribution in Serbia. A pecuniary measure for protection of competition in the amount of approximately RSD 330 million (equal to approximately EUR 2.67 million) was imposed on this undertaking, to be paid into the budget of the Republic of Serbia. This is in addition to behavioral measures aimed at providing equal business conditions on the relevant market.

During the course of the proceedings, the Commission determined that the aforesaid undertaking abused its dominant position by placing certain commercial electricity suppliers and, in particular, its sister company EPS Supply, in a more favorable position vis-à-vis their competitors. Such behaviour was, among other things, a consequence of the non-transparent business policy of EPS Distribution.

While contracting access to the electricity distribution system, EPS Distribution imposed a commitment to deposit security instruments on all commercial suppliers except its sister-company, EPS Supply. At the same time, EPS Distribution discriminated between different suppliers in terms of the amount of the deposited security instruments, by setting the amount for some suppliers based on the monthly value of services provided, while for others the amount was based on a trimonthly value. In addition, almost all commercial suppliers of electricity were obliged to deposit their security instruments in just one commercial bank, chosen by EPS Distribution. During a brief period, EPS Supply also enjoyed a much longer grace period for settling its liabilities towards EPS Distribution, compared to all other commercial suppliers.

The abovementioned conduct resulted in increased costs for competing commercial electricity suppliers.

In setting the level of the pecuniary measure for protection of competition, the Commission took into account the cooperation and overall conduct of EPS Distribution during the proceedings. This included, in particular, the amendment of the disputed acts and a demonstration of intent to fully eliminate the harmful effects of the prohibited market behavior.

Thematic workshop titled “Competition Rules and the Financial Sector” was organized by the OECD-GVH Regional Centre for Competition in Budapest. The three-day conference encompassed lectures and exchange of experiences concerning competition policy aspects specifically related to the financial services, including banks and insurance companies operations and functioning of the payment systems.

This also represented an opportunity to discuss competition policy topics such as restrictive agreements, abuse of dominance, various cases from the competition area, and sector inquiries related to financial markets.
Representatives from the DG Competition, OECD, British Financial Conduct Authority and American Department of Justice were included as the event panelists.

Representatives of the Commission for Protection of Competition were Ms. Sunčica Đorđević from the Department for Competition Infringement and Ms. Aleksandra Ravić from the Department for Economic Analysis. Ms. Sunčica Đorđević held a lecture providing the basic information on conducted sector inquiry related to insurance market in the Republic of Serbia for the period 2012-2015, which was recently completed by the Commission for Protection of Competition.

President of the Commission for Protection of Competition, Miloje Obradović, PhD, received a visit from the World Bank Country Manager for Serbia, Tony Verheijen.

Dr Obradović presented to Mr. Verheijen activities implemented so far, in addition to the Commission’s plans aimed at the improvement of competition policy in our country. During the meeting, the Commission President specifically emphasized the importance of permanent education in the area of competition policy legislation of all institutions and levels of government, and in particular the judicial authorities.

World Bank Country Manager for Serbia pointed out that this international institution participates in the judicial reform project in the Republic of Serbia, during which they have received a numerous private sector complaints relating to the functioning of the courts in our country, in particular the administrative and commercial courts.

To that end, the joint interest to cooperate with all competent authorities and institutions is identified in order to improve the functioning of the judiciary in Serbia. Also, it has been concluded that both institutions hold an important role in enhancing the competitiveness of our country and in the process of restructuring state owned enterprises and public utility companies.

It has been agreed that communication between the Commission for Protection of Competition and the World Bank Country Office in Serbia will be intensified in the period to come, with the objective of improving the economic environment of our country.
The meeting was also attended by Srđan Svirčev, WB Public Sector Expert, Marko Obradović, member of the Council of the Commission for Protection of Competition, and Nina Vasić, Advisor in the Department for Domestic and International Cooperation of the Commission.

President of the Commission for Protection of Competition, Miloje Obradović, PhD, met with Ms. Radica Nusdorfer, newly appointed Head of the Economic and European Integration Section at the EU Delegation to Serbia.

Current issues related to competition policy and Commission’s activities within the EU accession process were discussed during the meeting, having in mind the significance of competition policy in the EU legal and institutional framework.


President Obradović also introduced Ms. Nusdorfer to preparations for improving competition related regulatory framework in Serbia, in addition to the profile-raising activities of competition policy implemented by this institution.


Head of the Economic and European Integration Section at the EU Delegation to Serbia, Ms. Radica Nusdorfer, commended activities of the Commission implemented up to present and proposed more intense cooperation with the EU Delegation to Serbia in the context of our country’s competition policy improvement endeavors.

President of the Commission for Protection of Competition, Miloje Obradović, PhD, following the invitation of the Anti-Corruption Agency, participated at the conference “Cooperation of the Anti-Corruption Agency with state institutions in the fight against corruption”.

Considering that the Commission for Protection of Competition has signed agreements with numerous state institutions and more intensely cooperates with the Anti-Corruption Agency as well, the latter being confirmed by the Agreement these two institutions have signed together with the Republic Commission for Protection of Rights in Public Procurement Procedures, this event provided the appropriate opportunity for presenting activities that the Commission for Protection of Competition, in line with its legal competences, conducts on a daily basis.

President of the Commission, dr Miloje Obradović, reminded participants of the conference that the Law on Protection of Competition belongs to the group of systematic anti-corruption legislations. “One of the preconditions for increasingly efficient work of the Commission is a constant dialogue and qualitative system of information exchange with the competent authorities in the Republic of Serbia”, dr Obradović emphasized during the symposium, and as an example of successful cooperation specifically pointed to the recently signed agreement with the Anti-Corruption Agency and Republic Commission for Protection of Rights in Public Procurement Procedures. “The objective of this agreement is protection of public interest, reduction of corruption related risks and strengthen institutional integrity”, specified dr Obradović.

Director of the Anti-Corruption Agency, Tatjana Babić, emphasized that the fight against corruption is a joint endeavor of all institutions.
“No single anti-corruption institution is able to achieve much if it doesn’t have the police and courts on its side and if is ill-financed”, said Director Babić. She added that in the fight against corruption is necessary to have a „neverending patience“, as well as to invest enormous efforts in making baby-steps.


Objective of the conference was to highlight the commitment and cooperation achieved so far of all state institutions in the fight against corruption.

Deputy Prime Minister and Minister of Interior, Nebojša Stefanović, PhD, President of the State Audit Institution, Radoslav Sretenović, Dean of the University of Belgrade’s Law School, professor dr Sima Avramović, and directors of the Tax Administration and Public Procurement Office participated in the conference, and other representatives from international organizations, civil society and the media.

President of the Commission for Protection of Competition, Miloje Obradović, PhD, delivered a keynote address during the opening part of the expert symposium “Significance of public procurement in creating business environment”.

Addressing the competences of the Commission in this segment of business activities, President Obradović reminded that pursuant to the Law on Protection of Competition, rigged bids in public procurement are considered as the most severe competition infringements.

Dr Obradović emphasized, among other things, that detected rigged public bids are sanctioned in accordance with the Law in monetary terms in the amount up to 10% of total preceding year revenues, in addition to the prohibition against participating in public procurement procedures during certain period of time. Dr Obradović ascertained that sometimes „appears that this is not a sufficient threat to those who believe that their personal financial interests are above the prosperity of society they are part of“.

During last year, the Commission published the Opinion on the implementation of Article 10 of the Law on Protection of Competition, thus defining the position of the Commission in the case of affiliated undertakings in public procurement procedures. The intent of the Commission during drafting of this document, as dr Obradović also specified, was to secure achievement of a higher degree of legal security of all undertakings in public procurement procedures, increased transparency of the Commission’s operations and more efficient implementation of the Law on Protection of Competition, as well as of the Public Procurement Law.

In the second part of the symposium, the Commission representative, Vladimir Antonijević, presented the role of the Commission for Protection of Competition in public procurement procedures.

The symposium was organized by the Chamber of Commerce and Industry of Serbia in cooperation with the Commission for Protection of Competition, Public Procurement Office and Republic Commission for Protection of Rights in Public Procurement Procedures.

The Commission for Protection of Competition expresses its concern due to the City of Subotica Assembly failure to fully act on the Commission opinion relating disputed provisions of the decision arranging utility service of burial and cemetery management in Subotica.

The Commission’s position, presented in the opinion, is that competition infringement and awarding monopoly rights to the municipal public utility company to the detriment of the service users must not occur. The Commission does not believe that granting monopoly rights based on the interpretation of legal terms “burial” and “other acts” is admissible, as considered by the City of Subotica Assembly.

The Commission has sent opinions to the City of Novi Sad Assembly and City of Pančevo Assembly regarding similar issue, whereas the Commission’s position has been acknowledged and fully implemented.

The Commission points that they continue to believe that the City of Subotica Assembly interpretation is too wide, which as its consequence has a restriction of competition and creation of monopoly in conducting burial and cemetery management utility service, when such behavior is neither necessary nor preferable. In that sense, it is expected that disputed provisions of the decision arranging utility service of burial and cemetery management by the City of Subotica Assembly shall be immediately amended pursuant to the opinion provided by the Commission.

On that account, the Commission also sent an opinion to the line ministry pointing to the need to precisely define terms arranging the area of burial and cemetery management in the future regulations so that monopolization of those activities based on different interpretations of legal provisions would be avoided.

The Commission takes this opportunity to emphasize the significance of treatment of the City of Subotica Assembly, considering that by adopting amendments to the disputed decision it would achieve a positive influence on competition. Amendments to the disputed provisions would enable conducting certain funeral services by all interested parties, that is, not just the public utility company but also other companies, entrepreneurs and other business entities, to the benefit of all service users.

President of the Commission, Miloje Obradović, PhD, spoke at the ordinary meeting of the Subcommittee on Internal Market and Competition held in Brussels.

Dr Obradović introduced the European Commission representatives on all activities related to the implementation of the Law on Protection of Competition, as well as on the degree of harmonization of competition related regulations with the EU acquis, which is in accordance with the commitments from Article 73 of the Stabilization and Association Agreement.

In presenting the Commission’s operative results, President Obradović emphasized that the commitment related to harmonization of the Law on Protection of Competition against the new Law on General Administrative Procedure shall represent a great challenge, but that for competition policy implementation is of a great significance that proceedings conducted before the Commission be recognized and defined as a separate administrative procedure, adjusted to the needs of the Law on Protection of Competition.

In its addressing, the Commission President pointed that the institution he heads, and in line with the possibilities and competences, shall endeavor to contribute in creating projects that would bring the subject of competition legislation closer to the judges, aimed at enabling advanced training for working on the cases from this area, which would also have an impact on achieving more efficient implementation of the Law on Protection of Competition.


In its addressing, President Obradović particularly mentioned: “The focus of sector inquiries shall be directed towards markets that in previous period already provoked the interest of the Commission as the case proceedings, or that based on the information are pointing to the fact that the current competition conditions may cause a concern of the Commission. Plausible sectors we shall investigate in the period to come, might encompass the gas, retail and pharmaceutical products markets.”

It has also been highlighted that the Commission’s intent, within its activities, is to promote the Leniency program even more intensely, and to introduce undertakings to the related advantages.

“The Commission shall also continue to work more intensely on raising awareness of the necessity to protect competition in Serbia, as well as on the implementation of practice related to including all interested parties in the regulations drafting procedure, aimed at securing transparency in the Commission’s operations”, said Dr Miloje Obradović, Commission President, in closing to its speech.


During the Subcommittee meeting that is regularly held as part of Serbia’s EU accession process, is presented that our country follows the dynamics of competition development in the EU and strives as much as possible to harmonize its standards against the EU standards. This is also confirmed by the EC review given in recently published the Progress Report for 2016, in which is emphasized that Serbia’s legal framework is mostly aligned with the EU acquis.