Member of the Council of the Commission for Protection of Competition, Marko Obradović, and Dean of the Faculty of Economics in Niš, Prof. dr sc. Jadranka Đurović Todorović, have signed the Memorandum on Cooperation between the Commission for Protection of Competition and the Faculty of Economics in Niš.

Memorandum on Cooperation defines the establishment of expert and educational cooperation between these two institutions in the competition policy area via organization of seminars, guest lecture series of the Commission’s experts, joint thematic workshops at the Institute of the Faculty of Economics in Niš, establishing academic internship programs and joint publishing activities in the competition policy area.

Signed document will enable joint activities to be placed on the promotion of competition policy and raising awareness of its significance within the academic and broader general public, to be achieved in cooperation with the Business Cooperation Center of Niš, in addition to introducing an academic course in the field of competition policy as an elective for Masters level students.

Memorandum on Cooperation with the Faculty of Economics in Niš is the fourth such agreement of the Commission signed with the academic community representatives.

During the last year, the Commission for Protection of Competition has conducted the Sector Inquiry on Competition Issues in Aftermarkets (Serbian version only). These markets encompass, inter alia, provision of guarantees, repair services, turnover and use of spare parts for motor vehicles and best-selling home appliances – refrigerators and washing machines.
The main goal of this inquiry was to establish the structure and relations between undertakings, their market shares and market power, with the objective of detecting potential market vulnerabilities, that is, existence of conditions leading to the infringement of competition.

Since the adoption of this document and introduction of the general public with its findings, the Commission has been intensively involved in additional reviewing of this document, in the context of existence of potential competition infringements effected by undertakings operating in these sectors.

To this effect, the Commission came to certain findings that necessary may not mean that particular acts performed on these markets by a part of undertakings are considered to be prohibited, but that may pose a threat to competitive behavior and present endangerment of equivalence of all undertakings on the said markets.

The Commission formulated derived findings in the following documents – Information of Findings and Positions of the Commission regarding the Motor Vehicles Aftermarkets Inquiry, and Information of Findings and Positions of the Commission regarding the Home Appliances Aftermarkets Inquiry.

In these documents, the Commission has in more details elaborated on particular elements of business operations performed on the part of undertakings operating in the motor vehicles and home appliances aftermarkets, and expressed the concern due to the specific segments of contractual relations between undertakings that may indicate to potential competition infringements.

The Commission forwarded these findings to competent state authorities, business associations, as well as undertakings operating in the motor vehicles and home appliances aftermarkets, in order to forewarn them of the possibility of becoming the subject of the Commission’s proceedings in the case of failing to amend certain segments of agreements arranged with their suppliers or dealers.

On May 29, 2017, the Commission for Protection of Competition has instituted proceedings for investigating competition infringement ex officio against Frozen Food Industry “Frikom” LLC Belgrade, on the grounds of determining the existence of abuse of dominance on the ice cream distribution and sale markets. On the following day, May 30, 2017, authorized officials of the Commission have carried out a dawn raid in the premises of “Frikom” company.

Namely, by implementing legal competences concerning the use of an instrument that is found to be extremely efficient in detecting various forms of competition infringements, authorized officials of the Commission have carried out a dawn raid in “Frikom” LLC, and on the occasion performed an inspection of business premises, i.e. data, documents and belongings in two locations in Belgrade, whereby the party concerned and proprietor of premises and belongings have been informed on the matter only when the dawn raid was taking place.

Dawn raid is an instrument available to the Commission for Protection of Competition, pursuant to Articles 52 through 55 of the Law on Protection of Competition with the objective of detecting and preventing acts or actions of undertakings that as their purpose or effect have or may have a significant restriction, distortion, or prevention of competition.

Considering that the proceedings is only recently instituted, and that dawn raid is just one of the manners in which the Commission can collect necessary evidence, all persons in possession of data, documentation or other relevant information that might contribute to the fact-finding in this proceedings are called upon to submit the said to the Commission for Protection of Competition to the address: 25 Savska St., Belgrade.

NALED and the Commission for Protection of Competition have organized a round table on the subject: “Significance and Challenges of Retail Trade Sector Development in Serbia in terms of Competition Policy”. The roundtable is organized so that representatives of companies operating in the retail trade sector in Serbia would be introduced to relevant details of a comprehensive inquiry project regarding retail trade market in Serbia instituted by the Commission for Protection of Competition; and also with the goal of calling upon those involved in this sector’s operations to present their proposals and suggestions toward drafting of this document, which is being prepared for the first time in our country. In addition, this inquiry encompasses the end-user and supply retail trade markets, focusing on relations between retailers and their suppliers, as well as the influence of private-label products affecting competition.

Participants of the roundtable event were welcomed by the President of the Commission for Protection of Competition, Dr. Miloje Obradović, and Vice Chairman of the Board of Directors of NALED, Goran Knežević, while the Head of Department for Economic Inquiries of the CPC, Dr. Siniša Milošević and his associates have introduced the audience with the implementation plan and goals of this sector inquiry.

President of the Commission for Protection of Competition, Dr. Miloje Obradović has emphasized that the Commission considers this task as highly significant, both in terms of the importance that this sector holds for the overall county’s economic activity, and concrete benefits for consumers, which is ultimately one of the core elements of an efficient competition policy.

Retail trade represents an economic sector with most prominent effect of a fair level playing field affecting consumers directly, having in mind that retail trade can achieve a direct contact with them, and concerning the rule of end-buyers ultimately bearing all the burden. Hence, I believe this inquiry can also contribute to the increased trust of consumers in undertakings directly if they are assured that everybody operates in accordance with the fair rules of the game, said President Obradović. – The Commission will extensively investigate current market structures, keeping in mind the great number of changes and takeovers occurring in the last decade, which will ultimately contribute to the increasingly improved and efficient protection of competition, thus enabling equal business operating conditions for all.

Participants recognized a joint interest in creating a realistic insight into conditions and relations on the food, beverages and tobacco retail trade markets, because the public often misperceives market shares in the retail trade sector, which harms and disturbs the reputation of undertakings directly, but also questions the efficiency of the Commission for Protection of Competition as well.


Representatives of the retail trade sector and suppliers participated at this roundtable, as well as delegates of the Ministry of Trade, law offices and expert public, while the event was organized within the Working group for Chapter 8 “Competition Policy” of the National Convent, chaired by the NALED.

In accordance with competences from Article 35 of the Law on Protection of Competition, the Commission for Protection of Competition has instituted proceeding for investigating competition infringement ex officio against companies “B2M” LLC – Belgrade, “Grafo Trade” LLC – Belgrade, “Trgodunav” LLC – Belgrade, “Master Clean Express” LLC – Palić, and JSC CI “Panonija“ – Pančevo.

As part of the proceeding, authorized officials of the Commission for Protection of Competition have conducted dawn raids on several locations of the listed undertakings in Belgrade, with the goal of collecting additional information.

During the proceeding, the Commission will investigate if the listed companies, as bidders participating in the public procurement tendering for the provision of consumables for individual and collective hygiene maintenance issued by the Ministry of Defense, have colluded as per sale prices and other trade related conditions to be implemented on the public procurement market.

All persons in possession of data, documentation or other relevant information that might 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/IV Savska St., Belgrade.

Council of the Commission for Protection of Competition enacted a decision establishing the infringement of competition and imposing the measure for protection of competition to companies Vital from Vrbas and Victoriaoil JSC from Šid, on the basis of concluded restrictive agreement that limits and controls production and market of edible sunflower oil.

It is established that the above-mentioned companies as competing parties on the markets of production and sale of edible sunflower oil, have concluded the Contract on business cooperation, wherewith have created a framework for harmonizing behavior of undertakings, resulting in a restrictive nature of the said Contact pursuant to the Law on Protection of Competition.

The measure for protection of competition is imposed in the form of commitment payment of a monetary sum to companies Victoriaoil and Vital, in the amount of RSD 23m and 8.6m, respectively.

On April 12, 2017, Council of the Commission for Protection of Competition enacted a decision on the implementation of retail market sector inquiry.


According to the European Commission’s reports, the role of retail sector is of key importance for the European economic development, and in this regard individual EU countries (Germany, Great Britain, Finland…) continuously monitor competition related fluctuations in the context of observed sector developments.

The sector inquiry will contribute to the establishment of relations between retail market competing parties at the local, regional and national level. Also, this sector inquiry will encompass the wholesale market. This implies the estimate of market share and relative power of undertakings, analysis of contractual relations between suppliers and trade chains, in addition to analyzing effects of those relations on the market competition.
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The issue of particular importance will be the relation between retailers and their suppliers in terms of establishing differences in the degree of negotiating power between small and large trade chains, as well as between those operating at the national, regional and local level. The second important aspect is the issue of suppliers positioning that can also be perceived via the likelihood and manner of exerting the influence on shelving display size in retail stores, or imposing potential obligation to pay compensations (slotting fee, risk of de-slotting when suppliers refuse to reduce prices or change other important terms and conditions of payment, and ‘pay-to-stay’ fees). The issue of rebates policy will be analyzed in detail, and particularly in regard to setting the types of approved rebates, amounts and criteria for their approval.


Keeping in mind that the development of private-label products is a trend that can be identified on the retail market, influence of product brands on consumer selection will be also analyzed, along with the profitability and negotiating power of trade chains and suppliers positioning.

And last but not less important, results of this sector inquiry will enable implementation of ex-post analysis of substantial concentrations previously executed in this sector.

President of the Commission for Protection of Competition of the Republic of Serbia, Dr. Miloje Obradović and Dean of the University of Belgrade Faculty of Law, Professor Dr. Sima Avramović, have signed the Memorandum of Cooperation between the Commission for Protection of Competition and Belgrade Faculty of Law.

The Memorandum of Cooperation defines founding of the professional and educational cooperation between these two institutions in the area of competition policy via organizing seminars, hosting lectures of the Commission’s experts, joint thematic workshops, developing student internship program, joint publishing activities from the competition area, etc.

The Memorandum of Cooperation signed with the Belgrade Faculty of Law is a third agreement of this kind the Commission has signed with the university community members.

The signed document shall enable investing joint efforts in promoting and advocating for competition policy and raising knowledge levels in the area of competition law, in addition to achieving more qualitative education of students toward attaining the set objectives.

Commission for Protection of Competition is this year’s Honorable Mention recipient to the 2016-2017 Competition Advocacy Contest – Elevating Competition Policies in Economic Policy Agendas: “Innovative Advocacy Strategies to Address Market Challenges”, launched by the International Competition Network (ICN) and the World Bank Group (WBG).

Submitted story, written by Ms. Gordana Bulatović, Chief of Staff to the Office of the Commission President and Coordinator of International Cooperation of the Commission, was entered into one of categories presented – “Implementing advocacy strategies at multiple levels (regional, national, subnational, economic wide and sector specific)”.

The Commission’s story presented with this prestige award, relates to implementing competition advocacy with the state authorities, where objective of the Commission activities is directed towards amending legal provisions favoring public enterprises and limiting other undertakings’ access to utility services market.

The selection panel emphasized that the awarded story undoubtedly showcased the important role that competition authority can play in promoting competitive neutrality vis-à-vis all market participants.

The recognition is awarded by the Advocacy Contest selection panel, comprising of reputable experts for competition issues of the World Bank Group (WBG) and International Competition Network (ICN). The award ceremony will take place during the ICN Annual Conference in Portugal, on May 11. The Commission for Protection of Competition of the Republic of Serbia is one of more than 140 members of the International Competition Network (ICN).

This already traditional annual contest aims to highlight the key role competition agencies play in promoting competition by showcasing their advocacy success stories.

The list of all awarded stories per categories is available on the World Bank Group website http://www.worldbank.org/en/events/2016/10/24/the-2016—2017-competition-advocacy-contest#4

Commission for Protection of Competition conditionally approved implementation of concentration created by acquisition of control on the part of Serbia Broadband – Srpske kablovske mreže LLC over Interaktivne kablovske objedinjene mreže – I.KOM LLC.

Based on the established facts, the Commission Decision recognized that the straightening of dominant position on the part of SBB company will occur only on the retail market of media content distribution services. For that reason, implementation of this concentration is approved, subject to the determined conditions.

SBB company will conduct a disinvestment within the set deadline, that is, sell parallel secondary network infrastructure on the territory of the City of Belgrade, where exist horizontal overlaps between related concentration parties.

The decision also sets conditions relating to the mandatory regular reporting on potential changes in retail prices of media content services provided via SBB basic package, as well as on the causes and intensity of related changes, in the duration of two years effective from the validity day of the decision.

SBB company is also ordered to offer current IKOM company service users the alternative possibilities when concluding new contracts, as per their choice, namely: Contract for an indefinite period offered by SBB to current or potential new users in line with the valid regular terms and conditions, or Contract for a fixed term offered to current or potential new users in line with the valid promotional terms and conditions.

During investigation proceeding, the Commission collected all necessary data, information and opinions on the concentration effects from competing parties to the concentration participants, in addition to the emitters and independent regulatory authorities competent for data considered relevant to this proceeding.