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.

On the session held on February 2, 2018, the Council of the Commission for Protection of Competition enacted a decision on conditional approval of concentration created by acquisition of control on the part of company Compagnie des Lesaffre S.A. over company Altech Serbia Fermentaciona industrija d.o.o. Senta.

Based on the facts determined during the investigation procedure, the Commission established that company Altech will create a dominant position of on the yeast extract production and sales market by way of the merger, with the concurrent strengthening a dominant position on the baker’s yeast production and sales market in the Republic of Serbia.
The Commission particularly considered the statements provided by company Lesaffre that the implementation of this concentration will significantly improve the utilization of production capacities of the target company, yeast extract exports, and thus increase the operating efficiency.

The Decision sets conditions in the form of behavioral measures and mandatory regular reporting to the Commission with the goal of preserving and further advancing production capacities of baker’s yeast and yeast extract in the Republic of Serbia.

Periodical reports to be submitted to the Commission will contain:
1. Data on the rate of production capacity utilization of company Altech
2. Data on the yeast extract production of company Altech
3. Data on the baker’s yeast production of company Altech
4. Rationale on potential service production termination, in case of contract termination with the only company’s buyer to date, before the specified date of termination set in the contract.

By implementing proposed special conditions and upon analysis of submitted reports, in full and complete consideration of the importance of this market, the Commission will monitor whether and to what extent the business plans and motives for the implementation of this concentration as presented by Lesaffre are implemented, assessed as favorable effects of concentration during the investigation process conducted by the Commission.

The Commission for Protection of Competition concluded a sector inquiry into the oil derivatives retail market in 2016 in the Republic of Serbia. The subject of the inquiry was the establishment of relations between main competitors in defined market segments with the objective to conduct a comparative inquiry into fluctuations of individual categories and identify potential market weaknesses.

The integral part of the report relates to derived conclusions based on which, inter alia, tendencies may be perceived, both on the oil production and processing market and on the oil derivatives retail market, as well as the structure and fluctuation trends in retail prices of selected oil derivatives.

The Commission assessed a level of compliance with the recommendations provided in previous reports, and once again pointed to the significance of establishing a precise statistical records on oil and oil derivatives, in addition to the importance of cooperation with other competent institutions towards creating a legal and business environment to advance the free market competition.

Considering the importance of the oil sector for energy activity and overall industrial development, as of March 1, 2018, the Commission will open a competition conditions inquiry into this market for 2017.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, as well as suggestions for the continuance of the inquiry, no later than February 28, 2018, to email address: office.kzk@kzk.gov.rs, with the subject line: Comments to the sector inquiry into the oil and oil derivatives market.

The Commission for Protection of Competition conducted a competition conditions inquiry into the sports footwear, clothing and equipment market on the territory of the Republic of Serbia.

The inquiry is conducted with the objective of establishing more qualitative and comprehensive approach in cases concerning this sector, but also towards raising awareness and education level of undertakings, since all, including this activity as well, are directed at securing efficient competition on the territory of the Republic of Serbia.

The subject of the inquiry related to the collection and elaboration of data on procurement and sales of sports footwear, clothing and equipment in the period 2014-2016. In line with the data submitted by undertakings for inquiry-related purposes, the Commission analyzed the market structure, relations between main competitors and their market shares. In this respect, researchers have established a dynamic growth, high concentration of observed markets, as well as revenue increase of all undertakings generated from the sales to end-users and other dealers. Considering all specificities of this market, the Commission will continue to monitor the sector concerned with a particular attention in the period to come as well.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, to email address: office.kzk@kzk.gov.rs, with the subject line: Comments to the sports footwear, clothing and equipment market inquiry.

The Commission for Protection of Competition also conducted a competition conditions inquiry into software and IT equipment market on the territory of the Republic of Serbia.

For the inquiry related needs, the Commission identified two relevant markets within a wider information and communication technology (ICT) market – software wholesale market, and hardware wholesale market (computers and IT equipment). Within such defined markets, particular attention is placed on the software and IT equipment public procurement markets.

The basic objective of the inquiry was to estimate the size and volume of defined markets, identify the most important undertakings operating on such defined markets and to assess their market share, as well as respective relative market power.
The subject of this inquiry related to the collection and elaboration of data on generated sale revenues pertaining to the software and computers and IT equipment on the domestic and foreign markets, as well as on generated revenues based on the participation ratio in public procurement procedures.

The inquiry used data provided by the Public Procurement Office on implemented software and IT equipment public procurements from 2014-2016, in addition to the conducted investigation into the largest software and IT equipment manufacturers and distributors founded on 42 company-based sample. For the inquiry related needs, the Commission also used publicly available data and information on the ICT sector, data from the balance of services published by the National Bank of Serbia, and data provided by the Statistical Office of the Republic of Serbia.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, to email address: office.kzk@kzk.gov.rs with reference: Comments to the software and IT equipment market inquiry.