President of the Commission for Protection of Competition of the Republic of Serbia, Miloje Obradović, PhD, and Dean of the Faculty of Economics, University of Kragujevac, Professor Petar Veselinović, PhD, have signed the Memorandum on Cooperation between the Commission for Protection of Competition and Faculty of Economics in Kragujevac.
Memorandum on Cooperation defines founding of expert and educational cooperation between these two institutions in the competition policy filed via organizing seminars, visiting lectures of the Commission’s experts, joint thematic workshops, developing students’ internship programs, and joint publishing activities in the competition policy area.
On the occasion of signing the Memorandum, the Commission President emphasized that the introduction of market economy should be encompassed by appropriate knowledge of the competition policy and law as a main free market driving force, as well as by thorough education of economists and lawyers in reference to related regulation drafting and implementation.
The signed document will enable acting in concert towards promoting competition policy and raising awareness of its importance, in addition to introducing an academic course in the field of competition policy as an elective for Masters level students.
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 2015 oil-derivatives wholesale and retail market sector inquiry.
The subject of the report is the competition inquiry in the Republic of Serbia in 2015 on previously defined markets for three oil-derivative categories: petrol, diesel fuel and liquefied petroleum gas.
The sector inquiry encompassed total of 17 business entities, being: Petroleum Industry of Serbia Inc. Novi Sad, Lukoil Srbija Inc. Belgrade, MOL Serbia LLC Belgrade, OMV Srbija LLC Belgrade, Eko Serbia Inc. Belgrade, Petrobart LLC Belgrade, Nafta Inc. Belgrade, Knez Petrol LLC Belgrade, LLC Euro Petrol trade company Subotica, Evolucija 2004 LLC Belgrade, Naftachem LLC for trade and services Sremska Kamenica, LLC Euro gas trading company Subotica, Standard gas LLC Novi Sad, Igmin Petrol LLC Belgrade, Speed LLC Belgrade, Daki petrol LLC Belgrade and Horizon Energy LLC Šimanovci.
The report provides a series of conclusions and recommendations foremost related to the continuance of operations aimed at forming a unique statistical records on the oil-derivatives turnover, increase in business transparency of undertakings, and cooperation of the Commission and competent institutions aimed at creating a legal and business environment that would enable free competition on the market.
Taking into consideration the importance of oil sector for energy-related operations and entire industrial development, the Commission shall, as from March 1, 2017, institute drafting of the 2016 related market competition inquiry.
The Commission expresses its gratitude to all undertakings which have in orderly manner submitted requested data during the conduct of related sector inquiry, and at the same time calls all undertakings and other expert public to send their comments to the report, in addition to proposals and suggestions for the continuance of the inquiry, no later than February 28, 2017, to email address: office.kzk@kzk.gov.rs, with the remark: Comment on the oil-derivatives market sector inquiry.
Following several inquiries addressing the Commission for Protection of Competition in regards to current issues with the December electricity bills issued to household costumers by the PU “Electric Power Industry of Serbia”, we hereby inform the public that the Commission shall investigate all allegations related to this case.
If reasonably assumed that this is the case of abuse of dominance, the Commission shall institute a proceeding ex officio for determining the infringement of competition.
Commission for Protection of Competition instituted proceeding ex officio for investigating unreported albeit implemented concentration created by the acquisition of an individual control by „Prointer IT Solutions and Services” LLC, Belgrade, over „Alti” LLC, Čačak, wherewith the earlier joint control over the aforesaid company, implemented by Aleksandar Jevtović and „Prointer IT Solutions and Services”, is transformed into an individual.
This business transaction represents a concentration, pursuant to Article 17 of the Law on Protection of Competition, which fulfilled the conditions of reporting to the Commission, pursuant to Article 61 of the LPC.
During the investigation procedure, the Commission will evaluate the criteria envisaged by the Law (Article 19 of the LPC) determining the permissibility of concentration, and in particular, the circumstance related to implemented albeit unreported concentration, which constituted a commitment of an undertaking (Article 63 of the LPC).
All parties in disposal of data, documents or other relevant information that may contribute to the relevant fact-finding in this proceeding are hereupon invited to immediate submit the aforementioned to the Commission for Protection of Competition to the address: 25/IV, Savska Street, Belgrade.
The Law foresees that concentrations of undertakings are permitted, unless they significantly restrict, distort or prevent competition in the market of the Republic of Serbia or its part, and especially if that restriction, distortion or prevention is the result of creating or strengthening of a dominant position.
National Assembly of the Republic of Serbia on its Seventh Sitting of the Second Regular Session, held on December 27, 2016, enacted the Decision on the election of Member of the Council of the Commission for Protection of Competition, Mr. Čedomir Radojčić, for a five year term. The Decision is published in the “Official Gazette of the Republic of Serbia”, no. 106, dated December 28, 2016.
Mr. Čedomir Radojčić is born on September 4, 1959. He graduated as the Bachelor of Laws (LL.B.). He passed the judicial state examination, Ass. jur., in 1992.
He holds a multiyear experience in managerial positions in the revenue-generating and state administration sectors. He is employed by the Commission for Protection of Competition since 2006, when elected as a member of the first Commission Council (as elected member of the Council), where afterwards he worked as the Head of Department for Competition Infringement.
He is one of co-authors of the publication “Competition and Antitrust”. As the Commission for Protection of Competition’s representative, he participated as a lecturer in a series of seminars and workshops held as a part of domestic and international projects.
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.