The 8th Sofia Competition Forum held beginning June in the Bulgarian capital city, traditionally gathered representatives of the national competition authorities from the Balkans.
Forum participants coming from Albania, Bosnia and Herzegovina, Croatia, Montenegro and other regional countries, but also competition authorities’ representatives from Germany, Japan, France, Austria, Italy, Portugal, Slovenia, Russia, Turkey, alongside speakers from organizations such are the UNCTAD and OECD, European Union Court of Justice, European Commission, reputable international experts for competition policy, as well as legislators and representatives of the academic community, exchanged experiences related to the competition law and policy implementation. The Forum seeks to encourage cooperation and development of regional relations, thus ensuring uniform application of competition-related rules.
At the Forum, Serbian Commission for Protection of Competition was represented by the Head of the Restrictive Practices Division, Mr. Čedomir Radojčić, one of the most prominent forum panelists. Attached is the representative’s presentation from the Sofia Competition Forum.
Representatives of the Commission for Protection of Competition of the Republic of Serbia, following an invitation of the Romanian Competition Council, visited Turnu Severin from June 8-10, 2016. The bilateral meeting, based on previously signed Memorandum of Cooperation between the two authorities, has been organized in the form of a roundtable for discussing numerous topics that have been jointly delegated.
The meeting was also utilized so than Romanian competition authority’s representatives could present a platform they have established, related to the treatment of initiative applicants and “whistleblowers”, bid rigging cases, cartels in the oil and oil derivatives sector, and sectoral analysis. During the meeting, the concrete forms of cooperation between the two institutions in reference to the mentioned fields are also taken into consideration.
Serbian and Romanian delegations were led by the Commission’s President, Miloje Obradović, PhD, and the Council’s President, Bogdan Marius Chiritoiu, respectively, in addition to Council’s members, secretaries and professional administrative service representatives.
Representatives of the Commission for Protection of Competition of the Republic of Serbia visited Rome during the three-day study visit to the Italian competition authority (Autorità Garante della Concorrenza e del Mercato). The study visit was organized as a part of a program support provided by „TAIEX“ – Technical assistance and information exchange instrument of the Directorate-General for EU enlargement.
During the study visit, a regulatory framework of the Republic of Italy competition law was presented, with particular emphasis on: determining infringement of competition in public procurement procedures; implementation of advocacy institute; implementation of leniency program and penalties for undertakings; practice in cases of conditional approval of concentration; implementation of economic analysis on competition regulation in specific sectors (free-lance professions, sport, burial services, banks, insurance).
The goal of this study visit was to improve knowledge and skills from the most important areas of competition law (restrictive agreements, abuse of a dominant position, economic analysis, control of concentrations), by informing from the examples of best practices and case studies of the Italian competition authority.
The second day of the international conference “Institution Building of the National Competition Authorities in South-East Europe”, organized by the Commission for Protection of Competition of the Republic of Serbia in cooperation with the European Bank for Reconstruction and Development and with the technical support of the Center for Liberal-Democratic Studies (CLDS), was dedicated to the role of economics in the implementation of competition policy. An important role in this, as well as many other matters related to the implementation of competition policy, is played by a high quality economic analysis.
During the conference, four panels were held which presented the experiences and economic tools in the process of market analysis, the determination of competition infringements and control of concentrations.
Notable presentations were given by Russell Pittman from the US Department of Justice, who presented the three most widely used economic instruments in the analysis of competition infringements, and Gregor Langus from the European Commission, who spoke about why economic analyses are the main tool in the effective policy of competition protection. Jelena Grahovac from the Economic Analyses Division of the Commission for Protection of Competition of the Republic of Serbia presented the experience of the Commission employees following the first economic and econometric trainings. The head of the Economic Analyses Division, Siniša Milošević, PhD, gave a speech on the “Analysis of price movement as a tool in defining the relevant market”, while Dajana Muženič-Abramovich from the Slovenian Competition Protection Agency spoke about the quantitative economic tests for defining the relevant market. Radu Paun from the Competition Council of Romania acquainted the participants of the conference with the economic instruments applied by this body in the context of measuring competitive pressure in the selected sectors of the economy. Gazmir Mani from the Albanian authority presented a case of abuse of dominant position in the mobile telephony market. Kim O’Sullivan from the EBRD provided a view of the role of economics in law and policy of competition protection as a way to improve the investment climate in the region.
In addition to the aforemntioned economic tools, competition authorities often use instruments for monitoring the market (such as sectoral analysis, studies, reports, research, etc.) with the aim of identifying possible weaknesses in the market and/ or the existence of conditions of competition infringements.
The Commission for Protection of Competition of the Republic of Serbia has, in cooperation with the European Bank for Reconstruction and Development and with the technical assitance of the Centre for liberal-democratic studies (CLDS), organized an international Conference on Institution Building of the National Competition Authorities in South- East Europe.
The Conference was opened by the President of the Commission for Protection of Competition, Miloje Obradović, PhD, the director of the EBRD for Serbia, Daniel Berg and the head of the Negotiating team for the Accession of the Republic of Serbia to the EU, Tanja Miščević.
The President of the Commission for Protection of Competition, Miloje Obradović, PhD, has emphasised that, after years of recession, the national competition authorities do not have the right to a mistake, that they must secure free application of the competition rules and intervene only to the extent and manner necessary to ensure consumer welfare.
”I believe that the only solution may be obtained through the build-up of institutional capacities of the bodies for protection of competition so that they would be enabled to, based on economic parametres, act as objectively as possible. What we need are new tools and instruments for assessing the market and behaviour of its participants. Also, what is important is the performance of relevant sector inquiries, the topic which we will, to my pleasure, discuss tomorrow.”
President Obradović has further stated that he believes there is significant room for improvement of the institutional capacities of the national competition authorities in the region.
”The exchange of experiences which contribute to the alignment of practice, as a necessity in the times of interconnected markets and globalization, as well as the presentation of new tools, procedures and legal solutions shall, without doubt, be the required step further in the fight against the increasingly subtle attempts at competition infringements, which we get to witness every day.”
The director of the EBRD for Serbia, Daniel Berg, has expressed his support for engagement and role of the national competition authorities and emphasised the importance of the fact that Serbia has a Commission which is capable of facing the challenges in creating equal conditions for all the market participants. These kinds of gatherings are, according to Berg, of crucial significance since they provide for an exchange of experiences which will improve the functioning of the all competition authorities in the South-East region of Europe.
”If the market is regulated, the conditions for economic growth and society welfare are in place. If the grey market has a larger share, the probability of criminality rise is higher”, it was concluded by Berg, who also added that the EBRD and other international institutions are making a strong contribution and efforts to enhance the regulatory framework in order to improve the investment climate in those countries.
In that sense, Serbia is extremely successful, in the opinion of Berg, since it has a set of economic laws in place which improve the conditions for its competitiveness.
The head of the Negotiating team for the Accession of the Republic of Serbia to the EU, Tanja Miščević has stated that Serbia will not face larger problems in negotiating Chapter 8 with regard to competition issues.
”When it comes to protection of competition, the position of Serbia shall, thanks to the quality of the work performed by the Commission for Protection of Competition, not be problematic. Nevertheless, state aid is also a part of this negotiating chapter and this is where matters will be a lot more complex.”
She made a remark that the Commission for Protection of Competition is a good example of the functioning of an independent body, even though such bodies were mainly unknown in the countries with transition economies.
The Conference was also attended by renowned panelists such as Russell Pittman, PhD, of the US Department of Justice, Lorenzo Ciari of the EBRD, Gregor Langus of the European Commission and many other international and local experts in this field, representatives of the legal profession, as well as the business and academic community in Serbia.
Media support of the Conference was provided by the N1 television, Fonet agency, as well as the Nedeljnik and Nova Ekonomija magazines.
The President of the Commission for Protection of Competition, Miloje Obradovic, Phd, with the members of the Councel of the Commission, has received Dimitri Loukas who is the Vice-President of the Commission for Protection of Competition of Greece.
In order to promote the further cooperation of these two institutions the topics of disscussion were the exchange of experiences in the field of the legislative framework and also the implementation of the policy of the Protection of Competition.
Obradović and Loukas agreed that there will be further steps in the collaboration which would allow the policy of the Protection of Competition to be even more efficient in this part of Europe. The activities that follow will provide for the Serbian Commision for the Protection of Competition to be even closer to European standards in the field of Law and the Policy of the Protection of Competition, which are an essential part of the negotiating process for accession to full membership in the European Union.
Representatives of the Commission for Protection of Competition have participated in the seminar “Basic concepts and procedures in competition law for young authority staff”, which was held in Budapest from 08th to 11th March 2016 and organized by the Regional Centre for Competition – OECD and the Hungarian Competition Authority.
The main topics discussed in the seminar touched upon various issues of competition law, such as the definition of the relevant market, use and storage of confidential information in the investigation of competition infringements, abuse of dominant position, mergers, etc. Special emphasis was placed on work-group exercises and discussions, with examples provided from practice and solutions available in differing national legislation. Additionally, a brief overview of the relevant case-law of the European Court of Justice, which has left a mark on the application of competition law and the conduct of the European Commission in the field, was provided for the majority of discussed topics.
At the invitation of the Federal Antimonopoly Service of the Russian Federation, President of the Commission for Protection of Competition, Mr. Miloje Obradovic, Ph.D. and a member of the Council, Ms. Mirjana Miskovic Vukasinovic, on September 23, 2015 attended jubilee session marking 25 years since its founding, and ”Competition Week” in Moscow. On this occassion, President of the Commission gave a remarkable presentation at the formal part of the session, which was also attended by the President of the Russian Federation, Mr. Vladimir Putin.
President of the Commission, Mr.Miloje Obradovic, Ph.D. in his address pointed out that competition policy has long ago overcome national boundaries and therefore cannot depend only on domestic rules of work, but should be regularly coordinated with the general rules of competition protection applied worlwide. That is why the cooperation with competition authority from Russian Federation, raised to the highest level in the last few years, as indicated by him, has opened yet another significant chapter in the development of Serbian Commission. Expedient exchange of information, comparative practice and possibility of exchanging experience through joint meetings, are of great benefit to Technical Service of the Commission.
Commission for Protection of Competition of the Republic of Serbia and Federal Antimonopoly Service of the Russian Federation signed Cooperation Agreement in 2012, followed by a series of joint activities that significantly influenced the improvement of work of the Commission. Pursuant to the Agreement, seminars and education in FAS training center in Kazan were organized, attended by many employees from Technical Service of the Commission, as well as a study visit and a visit of Russian colleagues last year to Serbia.
On October 11 and 12, 2012 International Conference was held in Beograd presenting expert analysis of the competition law and policy in Serbia and its results (Peer Review Report). Relevant analysis was made as a result of cooperation between Commission for Protection of Competition and expert team of UN Conference on Trade and Development – UNCTAD.
Report acknowledged enhancement achieved in the field of competition protection from the date of its introduction upto the present date, both as regards application of competition rules, and strenghtening of administrative and institutional capacities of the Commission for Protection of Competition.
It was assessed that Serbia succeeded in introducing modern system of competition protection, through establishment of an independent institution and adoption and enforcement of relevant legislative frame.
Report includes a series of recommendations, comments and suggestions aimed at further improvement of legislative frame, strenghtening of capacities and efficient application of Law and supporting sub-legal acts.
Among others, Conference was attended by Mr.Petko Draganov, Deputy to Secretary General, UNCTAD, Mr.Hassan Qaqaya, Head of Competition and Consumer Policies Branch, UNCTAD, Prof. William Kovacic, George Washington University, Prof. Vincent Martenet, President of the Commission for Protection of Competition of Switzerland, representatives from European Commission (DG COMP), competition authorities from Sweden, Hungary, Czeck Republic, Russian Federation, Romania, Bulgaria, countries from the region, as well as a large number of experts in the field of competition protection from the country and abroad.
Several lestures were given at the Conference, having as a topic cooperation of government bodies in joint struggle against violation of competition. Also, a round table was organised on the issues concerning importance of raising of awareness on competition protection and acquiring and transferring the knowledge to younger competition authorities.