President of the Commission, Dr. Miloje Obradović, spoke at the meeting of the Subcommittee for Internal Market and Competition, held in Belgrade.

Dr. Obradović introduced EC representatives to all activities concerning the implementation of the Law on Protection of Competition and the degree of compliance of national competition regulations with EU acquis, which fall under the commitments set out in Article 73 of the Stabilization and Association Agreement. He also reminded the audience that the Commission is currently drafting a new competition act, which should contribute to further enhanced implementation of competition policy, in addition to its full compliance with other regulations of the Republic of Serbia, foremost with the Law on General Administrative Procedure.

The Commission President also presented data on results of competition policy implementation during the previous period, noting that the executive authorities in a growing number of cases accept the opinions issued by the Commission for Protection of Competition, proving crucial in the context of ensuring a level playing field for all undertakings.

In his address, the Commission President underlined that institution which he heads, in full and complete compliance with the possibilities and competences, strives to contribute to creating projects which would bring the subject of competition policy closer to judges towards achieving professional specialization in competition cases, which would also have an impact on the increasingly efficient implementation of the Law on Protection of Competition. In that context, President Obradović underlined, as part of the EU Twinning project where the Commission for Protection of Competition is a project beneficiary, a series of workshops will soon be held where representatives of the judicial branch will have an opportunity to acquire qualitative know-hows necessary for enhanced implementation of competition policy in the Republic of Serbia.

“The Commission continues to work intensely on raising the level of awareness on the importance of competition policy in Serbia, while also implements an open-door policy towards all interested parties when drafting regulations, all directed at ensuring the Commission’s full operational transparency”, President of the Commission, Dr. Miloje Obradović, said to his Brussels counterpart.

During the meeting of the Subcommittee, which is regularly held as part of Serbia’s EU accession process, is said that our country is following the dynamics of competition policy development in the EU, and endeavors to align, to the extent possible, related national standards against EU standards. That has also been reconfirmed by the EC assessment given in its recently published 2017 Progress Report, where is underlined that competition policy implementation capacity has increased, both in the number of antitrust cases and the relative size and significance of companies under investigation, as well as that the Commission constantly improves its work, which positively affects the enabling environment for business development in the Republic of Serbia.

The Commission for Protection of Competition approved the concentration of undertakings created by acquisition of control on the part of company VINCI Airports Serbia d.o.o. over business operations of company AD AERODROM NIKOLA TESLA, relating to airport management operations at Nikola Tesla Airport in Belgrade.

The subject of target business operations relates to concession assets, as defined in the Concession agreement for financing, development through construction and reconstruction, maintenance and management of the infrastructure of AD Aerodrom Nikola Tesla Beograd and carrying out airport operator activities at AD Aerodrom Nikola Tesla in Belgrade. VINCI Airports Serbia d.o.o. operates within the VINCI Group, who have not hitherto carried out airport operator activities nor conducted business operations on the airport services market in Serbia.

The decision will be published on the Commission’s website when related conditions are met, that is, on the expiry of the period for bringing an appeal against the conclusion on data protection.

The Commission for Protection of Competition is publishing the Proposal of commitments which the party to the proceedings, company Sirmiumbus from Sremska Mitrovica, is voluntarily willing to undertake in order to eliminate possible infringements of competition, containing terms and conditions for execution of the proposed commitments.

Also, the Commission calls upon all interested parties to submit written remarks, positions and opinions on the proposed commitments, no later than 20 days from the date of publication of the notice.

By way of reminder, the Commission for Protection of Competition had instituted ex officio proceedings against company Sirmiumbus d.o.o. Sremska Mitrovica on September 22, 2017, in order to investigate the infringement of competition from Article 16 of the Law on Protection of Competition (abuse of dominance).

On March 14, 2018, company Sirmiumbus has submitted a submission entitled “Request for suspension of proceedings”, amended by a submission of April 19, 2018, headed “Amendment to the request for suspension of proceedings”. The submissions mentioned also contain the proposal of commitments which company Sirmiumbus is voluntarily willing to undertake in order to eliminate possible infringements of competition, containing terms and conditions for taking the measure.

The Commission has established that the proposal of commitments concerned is admissible, timely and submitted by a duly authorized person.

Pursuant to Article 58(1) of the Law, the Commission may enact a conclusion on suspension of investigation of competition infringement, imposing the measure referred to in Article 59 of the Law, if the party, based on the content of the conclusion on instituting proceedings, that is, facts established in the proceedings, submits a proposal of commitments that is voluntarily willing to undertake in order to eliminate possible infringements of competition, containing terms and conditions for taking the measure. Article 58(2) stipulates a deadline by which the party to the proceedings may place such proposal.

The Commission for Protection of Competition of the Republic of Serbia and the National Alliance for Local Economic Development (NALED) have organized a conference today, presenting the results of phase one of the sector inquiry into the food, beverages and tobacco retail market in the Republic of Serbia, prepared by the Commission for Protection of Competition.

During the conference held in the City Assembly of Belgrade, keynote addresses were given by President of the Commission for Protection of Competition Dr. Miloje Obradović, State Secretary at the Ministry of Trade, Tourism and Telecommunications Vesna Kovač, and Vladimir Čupić, President of the Food and Agriculture Alliance of NALED and Director of the Atlantic Group Representative Office for Serbia.

The inquiry was presented by Aleksandra Ravić from the Economic Analyses Division of the Commission for Protection of Competition.

Following presentation of the inquiry-based results, a panel session on retail market prospects in Serbia was also held, attended by Dr. Siniša Milošević, Head of the Economic Analyses Division of the Commission for Protection of Competition, Bojana Amanović from the Ministry of Trade, Tourism and Telecommunications, Dr. Goran Petković, Full Professor at the Faculty of Economics in Belgrade, and Goran Kovačević, NALED Fair Competition Alliance and CEO of Gomex.

The Commission for Protection of Competition has enacted a decision on the termination of proceedings against the Bar Association of Serbia.

Following investigation, which included assessment of submitted documents and gathered data, the Commission has concluded that it cannot be established with certainty that the Bar Association of Serbia, as a form of associated market participants, has enacted a decision which significantly restricts, distorts or prevents competition on the market of legal assistance services provided by attorneys at law on the territory of the Republic of Serbia, i.e. that it has infringed competition within the meaning of Article 10 of the Law. In that regard, the Commission has established that conditions for further conduct of the proceedings are not met.

By way of reminder, the Commission had instituted ex officio proceedings against the Bar Association of Serbia on July 29, 2014, due to the existence of a reasonable assumption that the provisions of enacted decisions restrict the market and the development of the market of legal assistance services provided on the territory of the Republic of Serbia.

The Commission for Protection of Competition instituted ex officio proceeding for the investigation of competition infringement against GR SPORT DOO from Sremska Mitrovica and POLANIK Sp.zo from Piotrków Trybunalski, Poland, for establishing the existence of restrictive agreement within the meaning of Article 10 of the Law on Protection of Competition.

Company GR Sport has been an exclusive distributor of company Polanik continuously since 2005 until the initiation of proceeding. By way of the recently conducted inquiry into the athletic equipment and sports props wholesale market, implemented by the Commission, it is established that the market share of GR Sport on the wholesale market of athletic equipment (clothing and footwear excluded), might exceed 25%.

Seeing that the restrictive agreement was not notified to the Commission with a request for the exemption pursuant to the legislative acts and corresponding regulations, i.e. that this restrictive agreement was not exempt, the Commission reasonably assumed the existence of competition infringement that as its purpose or effect has or may have a significant restriction, distortion or prevention of competition.

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 Commission for Protection of Competition to the address 25 Savska St., Belgrade.

On April 24, 2018, the Commission for Protection of Competition conducted dawn raids on business premises of companies “Keprom d.o.o.” and “Yuglob d.o.o.” from Belgrade. Dawn raids, as a special measure of inquiry, are conducted at three locations in Belgrade, where the Commission collected evidence of the importance for further conduct.

The Commission reasonably assumed that said companies, as big importers and distributors of baby and infant products, have concluded restrictive agreements by way of which have set the resale price of goods, and in that manner have infringed the competition rules stipulated in Article 10 of the Law on Protection of Competition.

Noting the exceptional significance of this market for consumers, but also for the society as a whole, the Commission will continue to investigate anti-competitive behaviors and competition compliance of undertakings in the coming period as well, particularly in terms of price policy.

In addition to the competition infringement proceeding, the Commission also instituted a comprehensive sector inquiry into the baby and infant product market.

On April 17, the European Commission presented the 2018 Progress Report on Serbia covering a two year period, as an overview of progress achieved towards EU accession that established the operational advancement of the Commission for Protection of Competition of the Republic of Serbia. The Commission’s activities are analyzed within the Negotiation Chapter 8: Competition Policy.

As per assessment presented by the European Commission, competition policy implementation capacity has increased, both in the number of antitrust cases and the relative size and significance of companies under investigation.

The Report reads that “the CPC’s investigations of large private companies and public enterprises significantly contributed to improving its credibility and public image. Competition advocacy activities increased.”

The Report also establishes that “the CPC’s decisions have been increasingly upheld by appeal courts”, but also that “the capacity of the judiciary to handle complex competition cases needs to be strengthened significantly.”

The findings presented as a part of the analysis within the Negotiation Chapter 8 of the 2018 Progress Report on Serbia confirm that the Commission is recognized as one of the parts of the Serbian administration whose operational activities are highly aligned with the EU acquis, in addition to its operational advancement achieved each year, which favorably affects the improvement of the business environment in the Republic of Serbia.

On February 23, 2018, the Administrative Court delivered a judgment on the annulment of a decisionof the Commission for Protection of Competition on the establishment of competition infringement by company EPS Distribucija. The case is referred back to the Commission for assessment.

The contested decision of the Commission enacted on December 23, 2016, established that company EPS Distribucija has abused dominance on the relevant market of electric power distribution on the territory of the Republic of Serbia by applying dissimilar conditions to equivalent operations with respect to a variety of undertakings, by which individual undertakings are placed in unfavorable position against competitors, and by imposing unfair business conditions. The decision imposed a measure for protection of competition, measures for removal of competition infringement and deadlines for execution thereof.

By acting on the statement of claims of January 26, 2017 submitted by EPS Distribucija for the annulment of the Commission’s Decision, the Administrative Court rejected the statement of claims as unfounded. EPS Distribucija filed before the Supreme Court of Cassation the Review petition of the court’s ruling – The Administrative Court’s Judgment. The Supreme Court of Cassation delivered a judgment, accepting the petition of company EPS Distribucija, setting aside the mentioned judgment of the Administrative Court, and referring the case back to the Administrative Court for judgement.

In the enforcement of the judgment of the Supreme Court of Cassation, the Administrative Court delivered a judgment on the acceptance of statement of claims and annulment of the Decision, referring the case back to the Commission for assessment, due to the infringement of rules of procedure.

In the judgment concerned, the Administrative Court failed to establish whether EPS Distribucija has abused the dominant position, but has ordered the Commission to remove the deficiencies identified, and to enact a decision in this case on the basis of such established facts.

Within the statutory time limits, the Commission will act on orders from the judgment of the Administrative Court and enact a new decision, and depending on the facts and circumstances established, will impose appropriate measures.

The Commission will in this case as well, consistently implement the Law on Protection of Competition in order to achieve economic prosperity and well-being of the society, and especially the benefit of the consumers, striving to secure the equal treatment, legal certainty and predictability in acting for all undertakings, regardless of their size and forms of ownership.

The Commission for Protection of Competition instituted proceeding ex officio for investigating the infringement of competition against SERBIA BROADBAND – SRPSKE KABLOVSKE MREŽE DOO BEOGRAD for establishing the existence of abuse of dominance, within the meaning of Article 16 of the Law on Protection of Competition.

By analyzing the report on the fulfilment of conditions stipulated by the Commission’s decision no. 6/0-03-01/2017-26 of March 13, 2017 in relation to company SBB, conditionally approving the implementation of concentration created by acquisition of control on the part of company SBB over company Interaktivne kablovske objedinjene mreže – I.KOM d.o.o, the Commission gained knowledge that company SBB, as of January 1, 2018, increased the monthly service fee for maintenance of cable-distribution system and provision of cable TV for 100.00 dinars, that is, established the related fee at the level of 1,395.00 dinars.

As company SBB failed to present sufficient evidence on the reasonableness of costs pertaining to the monthly service fee for maintenance of cable-distribution system and provision of cable TV in the amount of 1,395.00 dinars, in accordance with Article 41 of the Law on Protection of Competition (Official Gazette of the RS 51/2009 and 95/2013 – hereinafter referred to as the Law) the Commission will establish the facts, that is, whether the price of related service is set in an unfairly high amount, which may lead towards the exploitation of service users.

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 Commission for Protection of Competition at the address 25, Savska St., Belgrade.