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Sector Inquiry into Baby Equipment Market Completed

FICThe Commission for Protection of Competition conducted a sector inquiry into the baby equipment wholesale and retail market. The Commission noted the need to analyze competitive conditions on said market considering the lack of prior knowledge of its structure, in addition to the fact that this sector is very often a topic of discussion in the media.
For the inquiry related needs, the Commission identified eight product categories within the broader baby equipment market, among them the products subject to VAT refunds, namely: baby milk, baby diapers, strollers, cribs, car seats, feeding chairs, clothes and footwear (for up to 3-year-olds).

The primary objective of the inquiry was to assess the size and volume of defined markets and identify major undertakings. The goal of the inquiry was also to detect particular tendencies and trends through a comparative analysis of turnover indicators and to draw concrete conclusions on market mechanisms.

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, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the baby equipment market inquiry, no later than January 31, 2019.

Considering the significance of the market concerned, against the background of free market access and free price system, and also the existing market structure, the Commission will continue to monitor the behavior of undertakings on the market concerned with due care and analyze circumstances potentially indicating the infringement of the Law on Protection of Competition.

Discussions on Key Development Trends of Future Legal Framework Governing Competition Policy

FICImprovements to the competition law and policy in the Republic of Serbia in the context of the preparation of a new legal framework governing this specific area was the topic of discussion at the meeting between the Commission for Protection of Competition and companies, members of the American Chamber of Commerce in Serbia.

On the occasion, President of the Commission for Protection of Competition, Dr Miloje Obradović, together with Čedomir Radojčić, CPC Council member, and Gordana Lukić, Head of the Merger Investigation Division, who are otherwise members of the Working Group for drafting new competition act, has presented to the audience details on the motivation and key directions of development of future legal solutions.

It is established that a new legal framework governing competition policy is necessary against the background of continued harmonization with the EU Acquis, but also for the strengthening of current institutional capacities of the Commission for Protection of Competition and efficiency of enforcement mechanisms in light of securing a level playing field and further enhancement of legal certainty of undertakings. It is underlined that this is the first time that all relevant stakeholders are taking part in the drafting of a new regulation.

Commission Conducted Inquiry into Competitive Conditions on the Cement Production and Sales Market

kzkThe Commission for Protection of Competition has conducted an inquiry into competitive conditions on the cement production and sales market in the territory of the Republic of Serbia for the period 2014-2017. For the inquiry-related purposes, the Gray (Portland) cement market is identified as the relevant product market. The primary objective of this inquiry was to look into the structure and dynamics of competition on the market concerned.

Within the Gray (Portland) cement market, the Commission has specifically analyzed the production, import, export, and wholesale segments.

The inquiry used data provided by the Ministry of Finance-Customs Administration on the cement import and export, publicly available data of the Statistical Office of the Republic of Serbia on the Grey cement production and sales, as well as data provided by undertakings, cement manufacturers and importers, namely: CRH (Srbija) d.o.o. from Popovac, Lafarge beočinska fabrika cementa d.o.o. from Beočin, “TITAN” d.o.o. from Kosjerić, CEMEX SRB DOO from Niš, and NEXE BETON DOO NOVI SAD from Veternik.

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, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the cement market inquiry.

Considering the cement industry significance for the development of civil engineering and overall industrial development, as well as conclusions of this inquiry, the Commission will continue to monitor the behavior of this market’s undertakings with due care, and circumstances potentially indicating the infringement of the Law on Protection of Competition.

Notice of Filing of the Proposal of Commitments by VISA Payment Organization Representatives

VISAPursuant to Article 58 of the Law on Protection of Competition, the Commission for Protection of Competition hereby publishes the Notice of Filing of the Proposal of Commitments, which companies VISA Incorporated, VISA International Service Association and VISA CEMEA Holdings Limited as legal entities representing the VISA payment organization, are voluntarily willing to undertake in order to eliminate possible infringement of competition, with a call inviting all interested parties to submit commentaries, views and opinions in writing with reference to the commitments proposed.

EBRD Director for Western Balkans visits Commission

FICPresident of the Commission for Protection of Competition Dr Miloje Obradović has received a visit from the EBRD’s new Director for the Western Balkans, Zsuzsanna Hargitai.

Dr Obradović updated Director Hargitai on the Commission’s activities to date, as well as plans directed at advancing the competition policy in our country. During the talks, the Commission President has specifically underlined the benefits for the Commission from the existing cooperation with the EBRD. He has also informed the interlocutor of the status of currently implemented project “Capacity Building for the Serbian Commission for Protection of Competition”, supported by the European Bank for Reconstruction and Development.

The EBRD Director for the Western Balkans has underlined that this international institution has a good cooperation with the Commission, and that the aim is to further improve it and provide a support to reforms in the light of Serbia’s EU accession perspective.

It is concluded that both institutions should place additional efforts in the coming period in order to strengthen competition policy in the Republic of Serbia with a view to advancing our country’s business environment.

Instituted Proceedings on Bid Rigging Concerns

kzkThe Commission for Protection of Competition has instituted two proceedings against seven undertakings who have participated in a public procurement procedure published by PE „Elektroprivreda Srbije” in two groups of bidders. The parties in the proceedings have concluded joint bidding agreements relating to the public procurement whose subject was the provision of hauling services for the remaining equipment of used excavator and stacker from FR Germany to the Republic of Serbia.

One of the proceedings is instituted against companies Bora Kečić – specijalni transporti d.o.o. Beograd, Union Šped d.o.o. Beograd and Bata d.o.o. Trešnjevac (Kanjiža), and the other against companies Bora Kečić – vangabaritni transporti d.o.o. Beograd, Preduzeće za puteve Kragujevac d.o.o. Kragujevac, Transportšped d.o.o. Beograd and Agrorit d.o.o. Melenci (Zrenjanin).

All persons in possession of data, documents or other relevant information which could contribute to the accurate fact-finding in these proceedings are called upon to submit said to the Commission for Protection of Competition to the address 25/IV Savska St., Belgrade

President of the Commission – Commission’s Focus is the Well-being of Citizens

FICPresident of the Commission for Protection of Competition, Dr Miloje Obradović, gave a keynote address at the “Competition and Personal Data Protection” conference, traditionally held by the Law Firm Karanović & Partners and the German Friedrich Naumann Foundation for Freedom.

This year’s conference was focused on the experiences in competition law enforcement in the context of interplay between the competition law enforcement and economics, as seen through the prism of Serbian and EU experiences, state aid control, as well as on the implementation of new legal solutions governing personal data protection.

Dr Obradović underlined, inter alia, that the contribution of effective competition policy and law enforcement in promoting economic growth and well-being of citizens of the Republic of Serbia remains challenging, but that the Commission is fully aware of the importance of its mission and assigned tasks.

One of the conference’s panelists was Marko Obradović, CPC Council member, who informed the audience about the Commission’s plans and perspectives against the background of competition policy improvement in the Republic of Serbia.

„Regulatory Impact Analysis on Markets and Competition“ Seminar Held

FICIn cooperation with the International Finance Corporation (IFC), a member of the World Bank Group, and the Public Policy Secretariat of the Republic of Serbia, the Commission for Protection of Competition of the Republic of Serbia has held a two-day seminar „Regulatory Impact Analysis on Markets and Competition“.

The principal goal of this seminar was to provide support to representatives of the Serbian Government institutions to further improve the implementation of a regulatory impact analysis towards establishing and assessing potential market restrictions, and improving regulatory quality and effectiveness. The seminar also served as a platform showcasing international experiences on the integration of competition policy principles into drafted regulations.

The seminar participants were able to hear from Marijana Mišković-Vukašinović, CPC Council member, Bojana Tošić, Acting Director of the Public Policy Secretariat of the Republic of Serbia, Maciej Drozd, WB economist, as well as from Eugeniu Osmochescu, WB Team leader.

During panel sessions, Marko Obradović, CPC Council member, gave a well-perceived presentation on the Commission’s respective experiences, titled “How the Commission for Protection of Competition and the Public Policy Secretariat of the Republic of Serbia promote drafting regulations in support of businesses and competition”, while Dr Veljko Milutinović, CPC Council member, spoke on the topic “Rules reinforcing dominance or barriers to entry”. Representatives of the Mexican Federal Competition Commission and the National Regulatory Improvement Commission, Rodrigo Rios and Francisco Parra, respectively, have presented Mexico’s experiences gained in their efforts to accomplish regulatory framework harmonization against competition principles. Otherwise, Mexico is considered to be one of the global leaders in this particular area. Furthermore, WB Chief Economist, Tania Begazo, has presented examples encountered by this international institution in their attempts to exert an influence via numerous globally implemented projects focused on passing of regulations not restrictive to competition.

The second day of this seminar was organized as an interactive workshop, serving as a platform for the exchange of experiences gained from ensuring the inclusion of competition provisions into regulations. Representatives of the Mexican Federal Competition Commission and the National Regulatory Improvement Commission have presented in more detail the tools used in their regular practice.

This event is organized as a part of the Serbia Investment Climate Project, implemented by the International Finance Corporation in cooperation with the UK Good Governance Fund and the British Embassy in Belgrade.

Notice of Filing of the Proposal of Commitments by MasterCard Payment Organization Representatives

FICPursuant to Article 58 of the Law on Protection of Competition, the Commission for Protection of Competition hereby publishes the Notice of Filing of the Proposal of Commitments, which companies MasterCard Incorporated, MasterCard International Incorporated and MasterCard Europe S.A., as legal entities representing the MasterCard payment organization, are voluntarily willing to undertake in order to eliminate possible infringement of competition, with a call inviting all interested parties to submit commentaries, views and opinions in writing with reference to the commitments proposed.

Exemption of Imlek/Meggle Srbija Restrictive Agreement Approved

kzkThe Commission for Protection of Competition of the Republic of Serbia has approved individual exemption of restrictive agreement from the prohibition – Manufacturing Services Agreement, entered into by companies AD Industrija mleka i mlečnih proizvoda Imlek and Meggle Srbija doo Kragujevac.