The Commission for Protection of Competition has opened an antitrust investigation procedure ex officio on March 25, 2019, against PE Novi Autoprevoz from Vrnjačka Banja.

During the procedure, the Commission will investigate whether the company, as an operator of the only bus terminus in Vrnjačka Banja, has abused its dominance by charging various prices for bus services to passengers and bus carriers.

All persons in possession of valid data, documents or other relevant information that could contribute to the accurate fact-finding in this proceeding are invited to submit said evidence to the following address: Commission for Protection of Competition, 25/IV Savska St., Belgrade.

The Commission for Protection of Competition hereby publishes the Notice of filing commitment proposals, pursuant to Article 58 of the Law on Protection of Competition, which PUC “Gradska toplana” Niš is voluntarily willing to undertake in order to remove potential infringements of competition, with a call to all interested parties to submit observations, positions and opinions relevant to the proposed commitments in written form.

The Committee on the Economy, Regional Development, Trade, Tourism and Energy of the National Assembly of the Republic of Serbia discussed and unanimously adopted the Activity reports of the Commission for Protection of Competition for 2017 and 2018.
President of the Commission Dr Miloje Obradović informed the Committee members that two annual activity reports of the Commission contain all key elements pertaining to the work of the national competition authority. The Commission, according to Dr Obradović, has increased its administrative and institutional capacities during the period referred, and was focused on efficient and effective law enforcement towards ensuring more effective competition in Serbia.

- Our objective is the creation of competitive markets where undertakings will increase their productivity, innovations and investments, resulting in faster economic growth, development and increased standard of living of the citizens of the Republic of Serbia, concluded President Obradović during his presentation of the reports before the Committee.

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President of the Commission for Protection of Competition Dr Miloje Obradović took part as a panelist at the Kopaonik Business Forum 2019 during the “Protection of Competition in Serbia” panel session.
In addition to Dr Obradović, the participants at this panel session were also Marko Jović, Head of General Affairs, Vip mobile, Prof Dr Boban Stojanović, Faculty of Economics, University of Niš, and Tomislav Momirović, CEO, Mona Hoteli Management, while the session moderator was Prof Dr Dragan Lončar, Faculty of Economics, University of Belgrade.

In thanking all panelists for their contribution to the discussion and numerous guests present in the Central Hall during the Kopaonik Business Forum, the Commission President reminded the audience that the protection of competition is one of the key segments of the economic and business system of every country. Dr Obradović underlined that the implementation of competition law and policy leads to building adequate business environment and investment climate, in addition to mainstreaming the Serbian economy into the European Union. The implementation of competition policy in the Republic of Serbia is performed in accordance with the legal system, economic factors, sound business rationale, and public interest.

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The official launching ceremony held at the National Assembly of the Republic of Serbia has marked the initiation of the two-year EU-funded Twinning project “Further Development of Protection of Competition in Serbia”, jointly implemented by the Commission for Protection of Competition of the Republic of Serbia and the Italian Competition Authority.

Dr Miloje Obradović, President of the Commission for Protection of Competition spoke on the importance of this project for the development of competition policy in the Republic of Serbia, in addition to Gabriella Muscolo, President of the Italian competition authority, Vesna Kovač, State Secretary at the Ministry of Trade, Tourism and Telecommunications of the Republic of Serbia, H.E. Carlo Lo Cascio, Ambassador of the Republic of Italy to Serbia, Mateja Norčič Štamcar, Deputy Head of the EU Delegation to Serbia, Marko Jovanović, Assistant Minister of Finance for Contracting and Financing of EU Funded Programs, Marko Obradović, CPC Council member, and Alessandra Tonazzi, Director of International and European Affairs at the Italian Competition Authority.
The principal objective of this project is to provide input to the further alignment of national competition legislation with the EU acquis, its efficient enforcement and raising awareness on the competition law and policy among all relevant stakeholders in the Republic of Serbia.

The Commission for Protection of Competition is recognized as one of the parts of the Serbian administration whose work is most harmonized with the acquis communautaire and which improves its work every year, causing positive effects on the improvement of the business environment in the Republic of Serbia.

Noting that the Commission is the end-user, but not the sole project beneficiary, it is expected that the project implementation will secure considerable progress in ensuring the understanding, observance and implementation of competition rules by the courts, regulatory bodies, undertakings and their respective associations. This takes on particular significance in the context of raising capacities of the Serbian economy by strengthening market competition, which represents an important factor in the EU accession process.

This Twinning project that has been awarded to the Republic of Serbia is an important indication that the EU highly values activities implemented by the Commission for Protection of Competition in the previous years. This progress is also recognized in the European Commission’s Annual Report on Serbia 2018.

The project “Further Development of Protection of Competition in Serbia” is a part of the Twinning initiative launched by the European Commission to assist candidate countries in their efforts to strengthen their administrative and judicial capacity for the implementation of the EU acquis. The project budget is about one million euro and will be implemented over 24 months.

Representative of the Directorate-General for Neighbourhood and Enlargement Negotiations of the European Commission, Azra Iković, visited the Commission for Protection of Competition.

Speaking to Dr Miloje Obradović, President of the Commission for Protection of Competition, Ms. Iković was introduced to the work of the Commission directed towards improving the business environment in the Republic of Serbia, and in particular with efforts placed with regard to negotiations within Chapter 8: Competition policy.

Dr Obradović also updated the guest with the outputs of the activities implemented by the Commission since the last meeting, particularly those regarding the drafting process of the new Law on Protection of Competition and further harmonization of the competition policy framework with EU acquis and commitments under Article 73 of the Stabilization and Association Agreement.

Also, the parties touched upon the start of activities on a twinning program aimed at advancing competition policy in Serbia, to be implemented in cooperation with the Italian competition authority as a twinning partner.

During the meeting, it was pointed out that the competition policy in Serbia, and especially the work of the Commission for the Protection of Competition, was highly evaluated by the European Commission.

Namely, the Commission for the Protection of Competition has been recognized as one of the parts of the Serbian administration whose work is most harmonized with the acquis communautaire, which improves its work every year, which positively influences the improvement of the economic environment in the Republic of Serbia.

The Commission for Protection of Competition has completed the sector inquiry into the retail sale in non-specialized stores with food, beverages or tobacco predominating, covering a three-year period (2014-2016). The subject of the inquiry was to establish relations between market competitors in terms of assessing their market share and relative power, as well as to analyze relations between suppliers and trade chains, and possible effects of those relations on the state of market competition, and to conduct an analysis of the role and importance of private label branding.

The comprehensive results of the inquiry and related conclusions presented in the Report may provide a good starting point for future research of not only the Commission for Protection of Competition but also other competent authorities of the Republic of Serbia, as well as undertakings themselves.

The integral part of the report also includes recommendations in which the Commission has underlined the need to establish a public trade register that would considerably facilitate the monitoring of this trade segment in the coming period, but also the importance of cooperation established with other state authorities in terms of submitting all relevant legislation and regulations for the provision of opinions.

Considering the exceptional importance of this trade segment, as of March 1, 2019, the Commission will launch a sector inquiry into competitive conditions prevailing on this market for 2017-2018.

The Commission hereby expresses its gratitude to all undertakings that have regularly submitted the requested data during the inquiry drafting process, and also calls all undertakings and other members of the expert public to send their commentaries to the report, as well as recommendations and suggestions for the follow-up inquiry, no later than February 28, 2019, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the sector inquiry into the retail market.

The goal of the Agreement on Cooperation between the Commission for Protection of Competition and the Customs Administration of the Ministry of Finance of the Republic of Serbia, signed by CPC President Dr Miloje Obradović and Director General of the Customs Administration Miloš Tomić, is to improve cooperation towards achieving more efficient exercise of legally entrusted competences of the two institutions.

The Agreement stipulates the continuous exchange of information and data between the two institutions, cooperation in improving the skills and knowledge base and coordination of positions on issues of mutual interest.

The Commission for Protection of Competition conducted a sector inquiry into the oil derivatives retail market in the Republic of Serbia in 2017. The subject of the inquiry was to determine the relationships between main competitors in the defined market segments towards making a comparative trend analysis by particular categories and identifying potential market weaknesses.

The integral part of the report consists of derived conclusions that allow for, inter alia, an overall perception of trends both on the oil production and refining market and on the oil derivatives retail market, in addition to the structure and trends in retail pricing of selected oil derivatives.

The Commission has assessed the degree of compliance with recommendations provided in previous reports and reiterated the significance of creating detailed statistical records on oil and oil derivatives and the importance of cooperation with other competent authorities towards creating a legal and business environment which will improve free competition in markets.

Considering the importance of oil sector for the energy industry and overall industrial development, as of March 1, 2019, the Commission will begin to conduct an inquiry into competitive conditions on this market for 2018.

The Commission hereby expresses its gratitude to all undertakings that have regularly submitted the requested data during the inquiry drafting process, and also calls all undertakings and other members of the expert public to send their commentaries to the report, as well as recommendations and suggestions for the follow-up inquiry, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the sector inquiry into the oil and oil derivatives market, no later than February 28, 2019.

The Commission for Protection of Competition has found that companies „B2M” d.o.o. Beograd, „Trgodunav” d.o.o. Beograd, “Grafo Trade” d.o.o. Beograd, and „Master Clean Express” d.o.o. Subotica, have infringed competition by colluding in a public procurement implemented in 2016 by the Ministry of Defence. In the proceedings ex officio is established that said companies have colluded over the essential bidding components (price and other conditions of trade) relating to the public procurement concerned, resulting in the imposition of measures for protection of competition.