The Commission for Protection of Competition established the infringement of competition and imposed a measure for protection of competition against 15 undertakings operating on the sports clothing, footwear and equipment wholesale and retail markets.

It is established that undertakings „N SPORT“, „PREDUZEĆE ĐAK“, „OFICCE-SHOES“, „PLANETA SPORT“, „CARVEL“, „SPORTMARKET“, „TOTAL SPORT“, „SPORTIKO“, „UNIVERS-CO“, „EUROSTAR“, „TRIM DOO VRBAS“, „K..G…FASSHION“, „KOPELLI“, „STR FOKUS“ and „KOMISION SPORT ONE“ have concluded restrictive agreements – agreements of purchase and sale containing provisions that regulate prices in further sales, which represent the infringement of competition from Article 10 of the Law on Protection of Competition. The Commission established that certain provisions of concluded agreements represent a mutually agreed commitment that in a prohibited manner regulate prices and conditions of trade.

On August 18, 2016, the Commission carried out a dawn raid at the business premises of company “N-SPORT” and collected information, data and agreements concluded by this company with its buyers.

In accordance with the collected information and documents, company “N-SPORT”, acting as a seller, concluded agreements of purchase and sale with other undertakings, containing buyer’s commitment to maintain minimum retail prices in further sales established by “N-SPORT”. This commitment particularly related to brands PUMA, RUSSSELL ATHLETIC, SERGIO TACCIHINI and others. Also, agreements envisaged the prohibition of sales promotions and other forms of favorable sales without prior approval of the seller, i.e. “N-SPORT”.

The measure for protection of competition is imposed in the total amount of RSD 45,279,975.78, and specifically for: „N SPORT“ – RSD 16,525,732.75, „PREDUZEĆE ĐAK“ – RSD 15,850,569.60 „OFFICE-SHOES“ – RSD 2,705,138.00, „K… G… FASHION” – RSD 459,256.00, “SPORT ONE” – RSD 99,648.00, „TRIM“ – RSD 82,336.00, „CARVEL“ – RSD 1,307,906.00, „EUROSTAR“ – RSD 69,644.88, „STR FOKUS SNEŽANA ZLATKOVIĆ KOSTOV PR“ – RSD 44,263.37, „SPORTMARKET“ – RSD 44,202.00, „UNIVERS-CO“- RSD 2,776,959.18, „TOTAL SPORT“ – RSD 25,626.00, „KOPELLI“ – RSD 31,402.00, „SPORTIKO“ DOO – RSD 127,050.00 and „PLANETA SPORT“ – RSD 5,212,578.00, required to be executed in favor of the Budget account of the Republic of Serbia within six months period.

By means of conclusion enacted by the Commission President of October 10, 2017, proceeding is continued ex officio, instituted upon notification of concentration of company Compagnie des Levures Lesaffre S.A., France, created by acquisition of individual control over company Alltech RS Fermentaciona Industrija LLC Senta.

During the investigation procedure, the Commission will investigate as to whether concentration concerned fulfils the conditions of permissibility from Article 19 of the Law on Protection of Competition, or respectively on the possibility of significant restriction, distortion or prevention of competition on the market of the Republic of Serbia or its part by implementing the related concentration, and especially if such restriction, distortion or prevention would be the result of creating or strengthening of a dominant position.

The Commission will conduct all necessary activities, establish all facts and derive evidence necessary to define the relevant market(s), structure of the relevant market(s), degree of concentration on the relevant market(s), identification of actual and potential competitors, market position of participants in concentration, legal and other barriers to enter on the relevant markets, interests of consumers, etc.

The Commission calls upon all persons in possession of data, documentation or other information that might contribute to the accurate fact-finding in this proceeding to submit the said in the shortest possible time to the Commission to the address: 25/IV Savska St., Belgrade.

At the session of the Committee on the Economy, Regional Development, Trade, Tourism and Energy of the National Assembly of the Republic of Serbia, members of the Committee have reviewed the Operations Report for 2016 of the Commission for Protection of Competition.

President of the Commission for Protection of Competition Dr. Miloje Obradović informed the Committee members that 2016 was the jubilee year of operating activities of the Commission for Protection of Competition. He emphasized that the Commission in accordance with its legal competences, efficiently implements all activities toward securing protection of competition in the Republic of Serbia.

Dr. Obradović stated that during the reporting period, inter alia, activities within the accession process of Serbia to the EU are continued, as well as that the said activities were positively assessed on the part of the European Commission in regard the screening outcome for Negotiation Chapter 8.

Following the rationale to the Operations Report of the Commission for Protection of Competition, President of the Committee proposed the adoption of the Report of the Commission for Protection of Competition, which was accepted by the majority of votes of the Committee members.

The session was headed by the President of the Committee Snežana B. Petrović, and attended by members and deputy members of the Committee, as well as members of the Council and officials of the Commission for Protection of Competition.

The Commission has extended the deadline for submission of comments and opinions to the Draft Regulation on Technology Transfer Agreements Exempt from the Prohibition, and Draft Regulation on Agreements between Undertakings Operating in the Rail, Road and Inland Waterways Transport Sector Exempt from the Prohibition, to October 17, 2017.
Undertakings, business associations, law offices, expert public and all other interested parties may submit to the Commission their comments and opinions in reference to the texts of Draft regulations via email address komentar@kzk.gov.rs.

The Commission for Protection of Competition has prepared the Draft Regulation on Agreements on the Repair and Maintenance of Motor Vehicles and Agreements on the Distribution of Spare Parts for Motor Vehicles Exempt from the Prohibition, to be submitted to the Government of the Republic of Serbia for consideration and enactment, in accordance with competences stipulated by the Law on Protection of Competition.

The intent of the Commission is that new regulation will regulate conditions pertaining to the exemption of agreements from prohibition in the area of repair and maintenance of motor vehicles and distribution of spare parts for motor vehicles by taking into consideration specificities of this area, which are not regulated by the general competition policy rules.

The Commission calls all undertakings, business associations, law offices, expert public and all other interested parties that from October 2-17, 2017, submit to the Commission their comments and opinions in reference to the text of the Draft regulation via e-mail address komentar@kzk.gov.rs.

Distribution System Operator “EPS Distribucija” LLC Beograd, acting on the Decision of the Commission for Protection of Competition of December 23, 2016, has implemented all orders of the Commission, wherewith has implemented measures pertaining to the removal of competition infringement within deadlines stipulated for related implementation.

In such manner is provided that equal treatment of all undertakings as distribution system users is secured, along with the possibility for creation of effective competition on the electric power supply market.

The Commission uses this opportunity to particularly emphasize on the importance of a number of legal instruments to its disposal, which enable the Commission to implement effective protection of competition and to obligate undertakings to regulate their behaviors in accordance with the foundations of the market economy toward achieving economic progress and wellbeing of the society, and particularly in delivering benefits for consumers.

Commission for Protection of Competition has prepared the Draft regulation on technology transfer agreements exempt from the prohibition, to be submitted to the Government of the Republic of Serbia for consideration and enactment, in accordance with competences stipulated by the Law on Protection of Competition.

The intent of the Commission is that new regulation will regulate conditions pertaining to the exemption of technology transfer agreements from prohibition, by taking into consideration specificities of the sector concerned, and the fact that current regulations do not regulate the exemption of these kind of agreements.

The Commission calls all undertakings, business associations, law offices, expert public and all other interested parties that from September 12-27, 2017, submit to the Commission their comments and opinions in reference to the text of the Draft regulation via e-mail address komentar@kzk.gov.rs.

Commission for Protection of Competition has prepared the Draft regulation on agreements between undertakings operating in the rail, road and inland waterways transport sector exempt from the prohibition, to be submitted to the Government of the Republic of Serbia for consideration and enactment, in accordance with competences stipulated by the Law on Protection of Competition.

The intent of the Commission is that this new regulation will regulate conditions pertaining to the exemption of agreements from prohibition in the rail and road transport and inland waterways transport sectors, by taking into consideration specificities of the transport sector which are not regulated by the general competition policy regulations.

The Commission calls all undertakings, business associations, law offices, expert public and all other interested parties that from September 12-27, 2017, submit to the Commission their comments and opinions in reference to the text of the Draft regulation via e-mail address komentar@kzk.gov.rs.

Ministry of Trade, Tourism and Telecommunications, as the authorized legislator, and the Commission for Protection of Competition have instituted drafting of the new regulation governing competition policy. Following drafting procedure, and in the same manner as when preparing the Regulation on the content and manner of submitting notification on concentration, the Commission will call all interested parties to submit related proposals and suggestions, so that new legal solutions could be even more approximated, not only to the EU acquis, but adjusted to the specificities of markets operating on the territory of the Republic of Serbia. The Commission expects cooperation with the academic and expert public, as well as business community representatives in the widest sense of the word, including law offices and undertakings. In this respect, the Commission expresses its familiarity with the content of statements from the document written in English language “Call to action – Protection of free competition”, prepared by an individual law office and the Association for Protection of Constitutionality and Legitimacy. Although the purpose of this notice is not to debate with the authors, but to announce drafting of the new law, however, considering that occurrence of this document coincides with the initiation of new legislative drafting, and given that mentioned text contains incorrect and blanket statements on the Law on Protection of Competition and work of the Commission, it is assessed that toward proper informing the public, it is necessary to react with regard to particular statements. The above-mentioned document assesses the work of the Commission as arbitrary, without judicial control, with particular acts taken during the proceedings characterized as the breach of basic human rights, while the Law per se is evaluated as unconstitutional, thus the call-to-action relates to its abrogation and need to enact new regulation that would be constituted under the Constitution. Without prejudice to interpret provisions of the Code of Professional Ethics for Attorneys-at-law, the Commission nevertheless reminds that the aforementioned Code, inter alia, determines that the manner in which an attorney at law communicates with the state authorities reflects the legal culture and respect for the legal profession, and that in the context of this relation, attorney-at-law should communicate in a temperate and polite manner. The aforementioned Code also determines that written motions and oral addresses should be clear, concise, appropriate and logical, while any criticism an attorney-at-law addresses to the court, other state authorities and representatives thereof must not be communicated in an inappropriate or offensive manner. Considering the aforementioned aspects, and toward preserving the reputation and standards of professional conduct, the Commission will address the Bar Association of Serbia with the request to assess infringement of the Code. The Commission is not surprised by the fact that authors refer to the abrogation of the Law on Protection of Competition as unconstitutional, as such attempts are not new, however, the manner in which such presentation is given, is perceived as inappropriate in every aspect.

We are also informed on the submission of the related document to undertakings which, if insufficiently familiarized with the Law on Protection of Competition and work of the Commission, could be mislead as to the competencies and authorities of the Commission, in addition to the rights stipulated by the Law.

Finally, regardless of the initiative claiming that future amendments to the Law on Protection of Competition will further consolidate “existing unconstitutional provisions”, which we assess as absolutely unacceptable, and in the light of previous positive experiences, the Commission expects to establish cooperation with all interested parties during the legislative drafting process pertaining to the new law on protection of competition.

Based on submitted information, the Commission for Protection of Competition has instituted proceedings ex officio for investigating concentration created by acquisition of individual control on the part of company „Prointer IT Solutions and Services“ LLC Beograd, over company “Alti” LLC Čačak.

In the course of investigation procedure is established that the concentration is implemented without received prior approval of the Commission, thus violating the Law on Protection of Competition, and consequently resulting in determining measure for protection of competition against company „Prointer IT Solutions and Services“ LLC in the amount of 6.7 million dinars.

When determining the amount of related measure, the Commission has considered that said concentration would not cause adverse consequences and would be approved, if notified pursuant to legal obligation.