President of the Commission for Protection of Competition Dr Miloje Obradović has received a visit from the EBRD’s new Director for the Western Balkans, Zsuzsanna Hargitai.

Dr Obradović updated Director Hargitai on the Commission’s activities to date, as well as plans directed at advancing the competition policy in our country. During the talks, the Commission President has specifically underlined the benefits for the Commission from the existing cooperation with the EBRD. He has also informed the interlocutor of the status of currently implemented project “Capacity Building for the Serbian Commission for Protection of Competition”, supported by the European Bank for Reconstruction and Development.

The EBRD Director for the Western Balkans has underlined that this international institution has a good cooperation with the Commission, and that the aim is to further improve it and provide a support to reforms in the light of Serbia’s EU accession perspective.

It is concluded that both institutions should place additional efforts in the coming period in order to strengthen competition policy in the Republic of Serbia with a view to advancing our country’s business environment.

The Commission for Protection of Competition has instituted two proceedings against seven undertakings who have participated in a public procurement procedure published by PE „Elektroprivreda Srbije” in two groups of bidders. The parties in the proceedings have concluded joint bidding agreements relating to the public procurement whose subject was the provision of hauling services for the remaining equipment of used excavator and stacker from FR Germany to the Republic of Serbia.

One of the proceedings is instituted against companies Bora Kečić – specijalni transporti d.o.o. Beograd, Union Šped d.o.o. Beograd and Bata d.o.o. Trešnjevac (Kanjiža), and the other against companies Bora Kečić – vangabaritni transporti d.o.o. Beograd, Preduzeće za puteve Kragujevac d.o.o. Kragujevac, Transportšped d.o.o. Beograd and Agrorit d.o.o. Melenci (Zrenjanin).

All persons in possession of data, documents or other relevant information which could contribute to the accurate fact-finding in these proceedings are called upon to submit said to the Commission for Protection of Competition to the address 25/IV Savska St., Belgrade

President of the Commission for Protection of Competition, Dr Miloje Obradović, gave a keynote address at the “Competition and Personal Data Protection” conference, traditionally held by the Law Firm Karanović & Partners and the German Friedrich Naumann Foundation for Freedom.

This year’s conference was focused on the experiences in competition law enforcement in the context of interplay between the competition law enforcement and economics, as seen through the prism of Serbian and EU experiences, state aid control, as well as on the implementation of new legal solutions governing personal data protection.

Dr Obradović underlined, inter alia, that the contribution of effective competition policy and law enforcement in promoting economic growth and well-being of citizens of the Republic of Serbia remains challenging, but that the Commission is fully aware of the importance of its mission and assigned tasks.

One of the conference’s panelists was Marko Obradović, CPC Council member, who informed the audience about the Commission’s plans and perspectives against the background of competition policy improvement in the Republic of Serbia.

In cooperation with the International Finance Corporation (IFC), a member of the World Bank Group, and the Public Policy Secretariat of the Republic of Serbia, the Commission for Protection of Competition of the Republic of Serbia has held a two-day seminar „Regulatory Impact Analysis on Markets and Competition“.

The principal goal of this seminar was to provide support to representatives of the Serbian Government institutions to further improve the implementation of a regulatory impact analysis towards establishing and assessing potential market restrictions, and improving regulatory quality and effectiveness. The seminar also served as a platform showcasing international experiences on the integration of competition policy principles into drafted regulations.

The seminar participants were able to hear from Marijana Mišković-Vukašinović, CPC Council member, Bojana Tošić, Acting Director of the Public Policy Secretariat of the Republic of Serbia, Maciej Drozd, WB economist, as well as from Eugeniu Osmochescu, WB Team leader.

During panel sessions, Marko Obradović, CPC Council member, gave a well-perceived presentation on the Commission’s respective experiences, titled “How the Commission for Protection of Competition and the Public Policy Secretariat of the Republic of Serbia promote drafting regulations in support of businesses and competition”, while Dr Veljko Milutinović, CPC Council member, spoke on the topic “Rules reinforcing dominance or barriers to entry”. Representatives of the Mexican Federal Competition Commission and the National Regulatory Improvement Commission, Rodrigo Rios and Francisco Parra, respectively, have presented Mexico’s experiences gained in their efforts to accomplish regulatory framework harmonization against competition principles. Otherwise, Mexico is considered to be one of the global leaders in this particular area. Furthermore, WB Chief Economist, Tania Begazo, has presented examples encountered by this international institution in their attempts to exert an influence via numerous globally implemented projects focused on passing of regulations not restrictive to competition.

The second day of this seminar was organized as an interactive workshop, serving as a platform for the exchange of experiences gained from ensuring the inclusion of competition provisions into regulations. Representatives of the Mexican Federal Competition Commission and the National Regulatory Improvement Commission have presented in more detail the tools used in their regular practice.

This event is organized as a part of the Serbia Investment Climate Project, implemented by the International Finance Corporation in cooperation with the UK Good Governance Fund and the British Embassy in Belgrade.

Pursuant to Article 58 of the Law on Protection of Competition, the Commission for Protection of Competition hereby publishes the Notice of Filing of the Proposal of Commitments, which companies MasterCard Incorporated, MasterCard International Incorporated and MasterCard Europe S.A., as legal entities representing the MasterCard payment organization, are voluntarily willing to undertake in order to eliminate possible infringement of competition, with a call inviting all interested parties to submit commentaries, views and opinions in writing with reference to the commitments proposed.

The Commission for Protection of Competition of the Republic of Serbia has approved individual exemption of restrictive agreement from the prohibition – Manufacturing Services Agreement, entered into by companies AD Industrija mleka i mlečnih proizvoda Imlek and Meggle Srbija doo Kragujevac.

The Commission for Protection of Competition has instituted ex officio proceedings against company Konica Minolta Poslovna Rešenja SE d.o.o. Beograd, 11a Milutina Milankovića Blvd., Belgrade. The proceedings is instituted in order to investigate the infringement of competition from Article 10 of the Law on Protection of Competition.

During the course of investigation proceedings instituted on May 28, 2018 against companies Original doo Beograd, Mikops doo Niš, Birolinija doo Beograd, Biro print sistemi doo Beograd, Dikti Line doo, Birodeveloping doo Niš, and Birotehnika doo Jagodina, the Commission has gained knowledge indicating that company Konica Minolta Poslovna rešenja SE has also participated in the infringement of competition stipulated in Article 10 of the Law on Protection of Competition. As an importer and distributor of equipment manufactured by Konica Minolta, company Konica Minolta manages the sale of equipment via company Original doo Beograd, from which all other partners are procuring the related equipment, such as Birotehnika, Mikops and Birolinija, not excluding the independent sales. The sales and aftermarket services of equipment manufactured by Develep, owned by company Konica Minolta, are managed via partners Birodeveloping and Dikti Line.

For reasons of procedural economy, given that legal requirements on the consolidation of two proceedings are met, the Commission has enacted a conclusion on conducting single proceedings in this case.

The Commission for Protection of Competition has approved a concentration of undertakings created by the acquisition of control over Mining and Smelting Combine RTB Bor d.o.o. Bor, executed on the part of company Zijin Mining Group Co. Ltd., PR China.

Zijin Mining Group as a China-based company is engaged in the exploration and mining of gold, copper, zinc and other mineral resources, with no previous market presence in Serbia.

The Commission for Protection of Competition has instituted ex officio proceedings for investigation of infringement of competition against four pharmaceutical companies, namely Farmix d.o.o., Beohem-3 d.o.o., Makler d.o.o. and Pharmaswiss d.o.o., all from Belgrade. It is reasonably assumed that said undertakings have been involved in collusive bidding in public procurements of medications used for Hemophilia, i.e. have shared the Hemophilia public supply market in the period from 2014 to 2017. The market sharing practices between competitors are considered to be a form of very serious infringement of competition.

Based on the Commission for Protection of Competition’s reasonable assumption of the existence of objective risks of removal or alteration of evidence in the possession of the parties, the authorized officials of the Commission have conducted dawn raids on the business premises of companies subject to the proceedings concerned immediately following the opening of investigations. On the occasion, they have inspected and checked business premises and belongings of the parties, including computers and other e-data storage media. Also, the Commission has examined contracts, financial and other business documentation, as well as business correspondence, all related to the investigation into the existence of competition infringement.

All persons in possession of data, documents or other relevant information which could contribute to the accurate fact-finding in the proceedings concerned are called upon to submit said to the Commission for Protection of Competition, 25/IV Savska St., Belgrade.

The Commission for Protection of Competition has imposed a procedural penalty measure in the amount of 8,500 euro against undertaking „MIMO” d.o.o. Beograd, due to its failure to act on the Commission’s Request for the provision of information.

In the aforementioned request ordering the submission of data for the purpose of a proceedings for investigation of competition infringement instituted ex officio by the Commission against company Industrija smrznute hrane „Frikom” d.o.o., company „Mimo” was on two occasions warned of the consequences of omission in respect of the Commission’s order.
Taking into account that extended deadline for the submission of requested data has also been reached on August 25, 2018 and that said company failed to address the Commission with a request for the deadline extension or otherwise informed the Commission of the reasons not to act on the Commission’s Request for the provision of information, the Commission Council has enacted a decision on the procedural penalty measure.

Company „MIMO” d.o.o. Beograd is obligated to execute the penalty payment in the aforesaid amount within two months of receipt of the decision concerned, under the threat of enforcement measure. The amount set as a procedural penalty measure is paid into the Budget account of the Republic of Serbia.
Conducts contrary to the Commission’s orders, that is failures to act on its orders, are subject to the procedural penalty measures in the amount of 500-5,000 euro for each day of such conduct or omission, which is regulated by the provisions of Article 70 of the Law on Protection of Competition
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When setting the amount of penalty payments, the Commission implements the criteria stipulated in the Law on Protection of Competition and the Regulation on criteria for setting the amount payable on the basis of measure for protection of competition and sanctions for procedural breaches, manner and terms for payment thereof and conditions for determination of respective measures, as well as in the Guidelines for implementation of the Regulation on criteria for setting the amount payable (…), enacted by the Commission Council on May 19, 2011.

The Law on Protection of Competition specifies that procedural penalty may not exceed 10% of the total annual revenue calculated in a manner stipulated by the Law. Also, procedural penalty measure does not release a party for the obligation to submit requested data, i.e. to act on the Commission’s requests.