On March 3, 2017, President of the Commission for Protection of Competition enacted a decision on approving implementation of concentration in summary procedure, created by acquiring control on the part of company Agrana Beteiligungs – Aktiengesellschaft – Vienna, Austria, over company Sunoko Ltd., with registered seat in Novi Sad, Republic of Serbia.

Pursuant to the established facts determined during the proceeding, the Commission recognized that by implementing related concentration, no significant structural alterations will occur on the sugar beet production, buy up and processing market, and beet sugar production and wholesale market in the Republic of Serbia.

Agrana Beteiligungs company is present on the market of the Republic of Serbia solely in the sugar wholesale market segment, but only by selling extremely small quantities. On the other relevant markets – sugar beets production, buy up and processing market, and beet sugar production market in the Republic of Serbia, Agrana Beteiligungs company is not present.

The Commission emphasizes that by means of the Decision dated August 11, 2016, Sunoko – Star šećer concentration is conditionally approved, subject to the implementation of certain measures. The aforementioned Decision imposes conditions in the form of behavioral measures and mandatory regular reporting the Commission, aimed at securing market structure and preserving all production capacities, including the sugar refinery TE TO Senta on the market, transparent monitoring of sugar levels and market fluctuations in sugar prices, improving transparency of sugar sale policy and business relations with the buyers, as well as full disclosure of information before the Commission on the level and type of investments to be implemented in the TE TO Senta company aimed at increasing production efficiency.

The listed conditions are still effective.

In the previous period, and specifically as on January 22, 2017, the Commission for Protection of Competition has intensively conducted an analysis of all claims occurring in the public, relating to the alleged systematic errors arising when calculating the consumed electricity balance for December 2016.

Following the analysis of all claims at the Commission’s disposal, including the “Electric Power Industry of Serbia” statement on the results of conducted internal control, it is concluded that in this case cannot be reasonably assumed that the abuse of dominance has occurred, and thus exist no grounds for instituting procedure ex officio for determining infringement of competition.


The Commission emphasizes that when analyzing all claims of systematic errors arising when calculating the consumed electricity balance of households in December 2016, has established a full cooperation with the competent “Electric Power Industry of Serbia” representatives.

President of the Commission for Protection of Competition of the Republic of Serbia, Miloje Obradović, PhD, and Dean of the Faculty of Economics, University of Kragujevac, Professor Petar Veselinović, PhD, have signed the Memorandum on Cooperation between the Commission for Protection of Competition and Faculty of Economics in Kragujevac.

Memorandum on Cooperation defines founding of expert and educational cooperation between these two institutions in the competition policy filed via organizing seminars, visiting lectures of the Commission’s experts, joint thematic workshops, developing students’ internship programs, and joint publishing activities in the competition policy area.


On the occasion of signing the Memorandum, the Commission President emphasized that the introduction of market economy should be encompassed by appropriate knowledge of the competition policy and law as a main free market driving force, as well as by thorough education of economists and lawyers in reference to related regulation drafting and implementation.

The signed document will enable acting in concert towards promoting competition policy and raising awareness of its importance, in addition to introducing an academic course in the field of competition policy as an elective for Masters level students.

Commission for Protection of Competition instituted proceeding ex officio for investigating unreported albeit implemented concentration created by the acquisition of an individual control by „Prointer IT Solutions and Services” LLC, Belgrade, over „Alti” LLC, Čačak, wherewith the earlier joint control over the aforesaid company, implemented by Aleksandar Jevtović and „Prointer IT Solutions and Services”, is transformed into an individual.

This business transaction represents a concentration, pursuant to Article 17 of the Law on Protection of Competition, which fulfilled the conditions of reporting to the Commission, pursuant to Article 61 of the LPC.

During the investigation procedure, the Commission will evaluate the criteria envisaged by the Law (Article 19 of the LPC) determining the permissibility of concentration, and in particular, the circumstance related to implemented albeit unreported concentration, which constituted a commitment of an undertaking (Article 63 of the LPC).

All parties in disposal of data, documents or other relevant information that may contribute to the relevant fact-finding in this proceeding are hereupon invited to immediate submit the aforementioned to the Commission for Protection of Competition to the address: 25/IV, Savska Street, Belgrade.

The Law foresees that concentrations of undertakings are permitted, unless they significantly restrict, distort or prevent competition in the market of the Republic of Serbia or its part, and especially if that restriction, distortion or prevention is the result of creating or strengthening of a dominant position.

National Assembly of the Republic of Serbia on its Seventh Sitting of the Second Regular Session, held on December 27, 2016, enacted the Decision on the election of Member of the Council of the Commission for Protection of Competition, Mr. Čedomir Radojčić, for a five year term. The Decision is published in the “Official Gazette of the Republic of Serbia”, no. 106, dated December 28, 2016.

Mr. Čedomir Radojčić is born on September 4, 1959. He graduated as the Bachelor of Laws (LL.B.). He passed the judicial state examination, Ass. jur., in 1992.

He holds a multiyear experience in managerial positions in the revenue-generating and state administration sectors. He is employed by the Commission for Protection of Competition since 2006, when elected as a member of the first Commission Council (as elected member of the Council), where afterwards he worked as the Head of Department for Competition Infringement.

He is one of co-authors of the publication “Competition and Antitrust”. As the Commission for Protection of Competition’s representative, he participated as a lecturer in a series of seminars and workshops held as a part of domestic and international projects.

Commission for Protection of Competition enacted a decision finding that companies „Bora Kečić – Special transports LLC Belgrade” and „Large transport LLC Belgrade” have agreed on individual participation in the public procurement procedure tendered by the PE “Electro network of Serbia”. By concluding the restrictive agreement they have significantly restricted and distorted competition, and in that sense, the Commission enacted a pecuniary measure to the above-mentioned companies in the amount of RSD 9,792,225.00 and RSD 1,039,300.00 to „Bora Kečić – Special transports LLC Belgrade” and „Large transport LLC Belgrade”, respectively. The said companies are obliged to effect the payment of the aforementioned amounts into the budget of the Republic of Serbia within the deadline of three months.

In the proceeding conducted ex officio, the Commission determined that these companies have agreed on tender pricing, in addition to behavior taken during the conduct of public procurement in relation to offers provided by other bidders. In that sense, the Commission determined the occurrence of competition infringement pursuant to Article 10(2/1) of the Law on Protection of Competition. The objective of “rigged bid” was to eliminate the risk of potentially more favorable bid, to secure that companies „Bora Kečić“ and „Large Transport” in the respective public procurement be elected as the most advantageous bidders, and to acquire a gain higher than the one achieved under the conditions of a free and fair competition

Pursuant to the Decision of the Council and Article 47 of the Law on Protection of Competition, the Commission for Protection of Competition conducted the insurance market competition inquiry in the Republic of Serbia for the period 2012-2015.

The main objective of this inquiry is to determine the market structure and relations between main competing parties, their market shares and relevant power. Additionally, the objective of this inquiry is detecting possible market weaknesses that might create conditions causing competition infringement.

Working group comprising representatives of the Commission, National Bank of Serbia, Ministry of Finance and Ministry of Trade, Tourism and Telecommunications will be established in the coming period, formulating a Draft regulation on conditions for group exemption of agreements in the insurance sector, whereby the European regulatory rules and specifics of the insurance sector in Serbia shall be taken into consideration, which are presented in the Report via conclusions and recommendations of the conducted insurance market sector inquiry.


The Commission takes this opportunity to express appreciation to the National Bank of Serbia and all undertakings for submitting requested data for the purpose of this sector inquiry.
The full sector inquiry report, including conclusions and adopted recommendations is published honoring the requests of business entities for protecting data considered as a trade secret.

All undertakings and other expert public are hereby called upon to submit their comments in reference to the Report, no later than February 28, 2017, email: office.kzk@kzk.gov.rs, with the remark: Comment to the insurance market sector inquiry.

On 23 December the Council of the Commission for Protection of Competition adopted a decision finding that the national electricity distribution system operator EPS Distribution LLC Belgrade abused its dominant position as the sole operator on the market for electricity distribution in Serbia. A pecuniary measure for protection of competition in the amount of approximately RSD 330 million (equal to approximately EUR 2.67 million) was imposed on this undertaking, to be paid into the budget of the Republic of Serbia. This is in addition to behavioral measures aimed at providing equal business conditions on the relevant market.

During the course of the proceedings, the Commission determined that the aforesaid undertaking abused its dominant position by placing certain commercial electricity suppliers and, in particular, its sister company EPS Supply, in a more favorable position vis-à-vis their competitors. Such behaviour was, among other things, a consequence of the non-transparent business policy of EPS Distribution.

While contracting access to the electricity distribution system, EPS Distribution imposed a commitment to deposit security instruments on all commercial suppliers except its sister-company, EPS Supply. At the same time, EPS Distribution discriminated between different suppliers in terms of the amount of the deposited security instruments, by setting the amount for some suppliers based on the monthly value of services provided, while for others the amount was based on a trimonthly value. In addition, almost all commercial suppliers of electricity were obliged to deposit their security instruments in just one commercial bank, chosen by EPS Distribution. During a brief period, EPS Supply also enjoyed a much longer grace period for settling its liabilities towards EPS Distribution, compared to all other commercial suppliers.

The abovementioned conduct resulted in increased costs for competing commercial electricity suppliers.

In setting the level of the pecuniary measure for protection of competition, the Commission took into account the cooperation and overall conduct of EPS Distribution during the proceedings. This included, in particular, the amendment of the disputed acts and a demonstration of intent to fully eliminate the harmful effects of the prohibited market behavior.

The Commission for Protection of Competition expresses its concern due to the City of Subotica Assembly failure to fully act on the Commission opinion relating disputed provisions of the decision arranging utility service of burial and cemetery management in Subotica.

The Commission’s position, presented in the opinion, is that competition infringement and awarding monopoly rights to the municipal public utility company to the detriment of the service users must not occur. The Commission does not believe that granting monopoly rights based on the interpretation of legal terms “burial” and “other acts” is admissible, as considered by the City of Subotica Assembly.

The Commission has sent opinions to the City of Novi Sad Assembly and City of Pančevo Assembly regarding similar issue, whereas the Commission’s position has been acknowledged and fully implemented.

The Commission points that they continue to believe that the City of Subotica Assembly interpretation is too wide, which as its consequence has a restriction of competition and creation of monopoly in conducting burial and cemetery management utility service, when such behavior is neither necessary nor preferable. In that sense, it is expected that disputed provisions of the decision arranging utility service of burial and cemetery management by the City of Subotica Assembly shall be immediately amended pursuant to the opinion provided by the Commission.

On that account, the Commission also sent an opinion to the line ministry pointing to the need to precisely define terms arranging the area of burial and cemetery management in the future regulations so that monopolization of those activities based on different interpretations of legal provisions would be avoided.

The Commission takes this opportunity to emphasize the significance of treatment of the City of Subotica Assembly, considering that by adopting amendments to the disputed decision it would achieve a positive influence on competition. Amendments to the disputed provisions would enable conducting certain funeral services by all interested parties, that is, not just the public utility company but also other companies, entrepreneurs and other business entities, to the benefit of all service users.