Pursuant to Article 47 of the Law on the Protection of Competition and the Decision of the Council, the Commission for the Protection of Competition conducted a sectoral analysis of the state of competition in the cement and concrete markets in the Republic of Serbia in the period from 2018 to 2021.

The subject of the analysis was to determine of the relationship between competitors, both on the cement market (producers and importers) and on the concrete market (producers), assessment of their market share and relative strength, analysis of commercial policy and contractual relations with suppliers and customers, as well as the effects that such relations can have on the state of competition in the market.
The goal of the research, when it comes to the cement market, was to comprehensively consider the changes in the market structure and dynamics of competition in the market in question, in relation to the period covered by the analysis conducted in 2018. When it comes to the concrete market, the main goal of the analysis was to determine the degree of vertical interdependence with the cement market as an upstream market, taking into account the existence of three vertically integrated market participants, and the effects that vertical connection can have on prices and conditions of competition
in the market.

For the purposes of the analysis, data was collected and processed from three cement producers (two of which are also concrete producers), five cement importers (one of which is a concrete producer) and 22 concrete producers.
The Commission would like to thank all market participants who promptly provided the requested information in the course of the analysis. Given the importance of the cement industry for the development of construction and overall industrial development, as well as the conclusions and recommendations of this analysis, the Commission will continue to monitor with special attention the behavior of participants in the relevant markets and circumstances that could indicate violations of the Law on Protection of Competition.

Pursuant to Article 47 of the Law on Competition Protection, the Commission for the Protection of Competition conducted a sectoral analysis of the state of competition on the market of digital platforms for mediation in the sale and delivery of mainly restaurant food and other products in the period 2020-2021.

The subject of the analysis was determining the relationship between competitors on the market of digital platforms for mediation in the sale and delivery of mainly restaurant food and other products, which included the analysis of the regulatory framework, assessment of market shares, analysis of contractual relations and commercial policies of market participants.

The main goal of the analysis was to review and analyze the state of competition on the market in question and point out potential problems in terms of limiting or any other type of infringement or prevention of competition.

An integral part of the Report on the sectoral analysis of the state of competition in the market of digital platforms for mediating the sale and delivery of mainly restaurant food and other products consists of conclusions and recommendations.

The Commission would like to thank all market participants who provided the requested information in the course of the analysis.

Pursuant to Article 47 of the Law on the Protection of Competition and the Decision of the Council, the Commission conducted a sectoral analysis of the state of competition on the market of other postal services.

The subject of the analysis was the determination of the relationship between the main market competitor of other postal services, courier services, which entailed the assessment of their market shares and relative strength, as well as the analysis of contractual relations between users and service providers, the commercial policy of service providers and the relevant regulatory framework.

The development of electronic commerce in the Republic of Serbia resulted in an increase in the volume (number) of postal shipments, especially in the parcel delivery segment, as well as express shipments. The development of the sector of other postal services significantly affects the operations of all economic entities. Large business entities aim to separate secondary activities from the main ones, leaving a large part of them to postal operators. Small and medium-sized enterprises are given the opportunity to develop their own value chains through cooperation with postal operators. However, by limiting competition between postal operators, bottlenecks can be created in the distribution channels of the retail sector.

The main objective of the sectoral analysis was to look at the state and dynamics of competition on the market in question, as well as to identify the possible problems in terms of potential limitations that affect the level of competition.
The Commission would like to thank all market participants who provided the requested information in the course of the analysis.

Pursuant to Article 47 of the Law on Protection of Competition, the Commission for Protection of Competition conducted a sectoral analysis of the state of competition on the market of textbooks for primary education in the Republic of Serbia in the period from 2018-2020.

The commission identified the need to analyze the state of competition on the textbook market, in the light of the frequent changes in the relevant legal framework, as well as certain specificities of this market, which allow schools to opt for textbooks from certain publishing houses in an insufficiently transparent manner.

In the analysis, special attention was paid to the process of issuing and selling textbooks and textbook sets for primary education, as well as the conditions under which textbooks were sold on the market of the Republic of Serbia in the observed three-year period. The research included the analysis of the market structure and market shares of textbook publishers, the analysis of (contractual) relations between textbook publishers on the one hand and their customers, distributors, bookstores and schools, as well as the effects these relations can have on the state of competition on the market. The subject analysis includes the method of forming the price of textbooks, as well as the analysis of the structure of the textbook sales price.

For the purposes of the analysis, the data on 16 publishers of textbooks for primary education and their 10 largest customers, distributors, who further sell the textbooks to schools and bookstores, were collected and processed.

The Commission would like to thank all market participants who duly submitted the requested data in the course of the sector analysis.

Pursuant to Article 47 of the Law on Protection of Competition, the Commission conducted a sectoral analysis of the state of competition in the distribution channels of ceramic tiles and sanitary ware.

A comprehensive analysis of the distribution channels of ceramic tiles and sanitary ware was conducted, in the market of the Republic of Serbia for the period from 2018 until 2020. This also implied determining the relationship between competitors – manufacturers, importers, wholesalers and retailers in the market of ceramic tiles and sanitary ware, assessing their market share and relative strength, analysis of contractual relationships, and the effects that these relationships may have on competition. The focus of the analysis was on the wholesale market of ceramic tiles and sanitary ware, while the market for the production of ceramic tiles and sanitary ware and the retail market of ceramic tiles and sanitary ware were processed in certain segments, solely in order to fully understand the distribution chain of the subject products.

An extensive network of trade in the said products was observed, wholesalers and retailers cooperating with a large number of suppliers, almost all of which are profiled as multi-brand stores with a wide range of different manufacturers, distributors and suppliers. Apart from the afore said, the analysis of the contract indicates that there are certain phenomena that may be potentially controversial from the aspect of competition protection, and the Commission will therefore continue monitoring the behavior of market participants and circumstances that indicate to violations of the Law on Competition.

The Commission would like to thank all market participants who provided the requested information in the course of the analysis.

The sectoral analysis of the intercity bus transport market in the Republic of Serbia was conducted in cooperation with the representatives of the World Bank within IFC’s Serbia Invest Climate Program. The project of improving the business environment in the Republic of Serbia, which is implemented on the basis of the Agreement between the Government of the Republic of Serbia and the International Finance Corporation, envisages that the World Bank will provide technical assistance to the Commission for Protection of Competition for the improvement of competition and market regulation in the Republic of Serbia, through several activities. One of the planned activities is the provision of technical assistance for conducting market research, including markets in which public companies participate, in order to identify and overcome obstacles in the implementation of fundamental market reforms that could affect the performance of the sector.

The subject analysis was prepared by the World Bank team, for the project purposes.

The subject of the analysis is the bus transport market in terms of identifying the basic characteristics of the market and market structure as well as the analysis of the regulatory environment, market performance and analysis of competition in the market through the identification of practices and rules that may distort competition. The analysis concluded that the existing regulatory framework contributes to suboptimal market outcomes and made recommendations for improving the intercity road transport market.

The Commission would like to thank all market participants who provided the requested information in the course of the analysis.

Under Article 47 of the Law on Protection of Competition, the Commission launched a sector inquiry into competitive conditions on the tour operators market.

The subject of the sector inquiry was the establishment of relations between competitors on the market concerned, tour operators, including the estimate of their market share and relative power, in addition to the analysis of (contractual) relations between tour operators and travel guarantee providers.

The main purpose of the sector inquiry was the identification of weaknesses in the market structure and potential issues in terms of intensifying competition, restriction or any other form of disruption or prevention of competition affecting the undertakings.

The market analysis was conducted based on the information obtained, in particular concerning the provision of travel guarantees necessary for the issuance of travel licenses under the Law on Tourism.

The Commission wishes to express its gratitude to all undertakings providing information during the inquiry drafting process.

Pursuant to Article 47 of the Law on Protection of Competition and the Decision of the CPC Council, the Commission launched a sector inquiry into competitive conditions on the markets for sugar beet production and buy out, sugar production from sugar beet processing, and sugar wholesale trade.

The subject of this research was to establish relations between competitors on the markets concerned from 2017-2019, assess their market share and relative power, analyze regulatory framework and look into the (contractual) relations between sugar beet producers, sugar beet purchasers, sugar producers, and wholesale traders of sugar products.

The Report on the inquiry into these particular markets summarizes the conclusions made in reference to the markets concerned, provides an overview of the dynamics between basic parameters of the markets concerned, offers comparisons with the EU market, particularly considering the changes that have happened during the observed period, gives an analysis of contractual relations, rebate policy, and compares the selling prices on the domestic market and export prices. Considering the tendencies on the sugar market and reduction in the number of operating sugar refineries both on the national and European markets, it is established that the export potential of this industrial sector to the neighboring countries is a very important factor, and that is necessary to maintain the production capacities and prevent the trend of closing and decline in the number of operating sugar refineries in the Republic of Serbia.

The Commission wishes to express its gratitude to all undertakings for providing the requested information during the Report drafting process and invites all stakeholders and other experts to present their respective commentaries to the Report by sending their observations to the email address office.kzk@kzk.gov.rs, Subject line: Commentary to the Sector Inquiry into the Markets for Sugar Beet and Sugar in the Republic of Serbia.

In accordance with Article 47 of the Law on Protection of Competition, the Commission for Protection of Competition has conducted a sector inquiry into competitive conditions on the wholesale market for synthetic (mineral) fertilizers.

The Commission has noted the need to analyze the competitive conditions on the fertilizers market given the increase in the producer price of fertilizers in the first three quarters of 2019, as well as the bankruptcy of one of the largest manufacturers of synthetic fertilizers in the Republic of Serbia – company “HIP Azotara” from Pančevo.

The research is carried out to provide a comprehensive overview of the structure and dynamics of this market and competitive conditions prevailing therein, as well as to identify potential market weaknesses.

In this inquiry, the Commission started off from the wholesale market for synthetic (mineral) fertilizers as a whole, within which it has analyzed the market for nitrogen fertilizers and the market for compound fertilizers.

For the purposes of this analysis, the Commission has collected and processed the data of the Statistical Office of the Republic of Serbia and the Ministry of Finance – Customs Administration, as well as other publicly available data and information relating to the production, import, export, and wholesale of synthetic fertilizers. The sector inquiry also looked into eight undertakings, manufacturers, and importers whose combined share accounted for about 90% of the total estimated fertilizers market in 2019.

The Commission wishes to express its gratitude to all undertakings for providing the requested information throughout the drafting process, and invites all interested parties and other experts to present their respective commentaries to the report by sending their observations to the email address office.kzk@kzk.gov.rs, Subject line: Commentary to the sector inquiry into fertilizers market, no later than January 15, 2021.

The Sector Inquiry into the Rail Freight Transport Market in the Republic of Serbia is done in cooperation with the WB Group representatives under the Serbia Investment Climate Program. Under the Program, the Government of the Republic of Serbia and the International Finance Cooperation have signed the Agreement on Cooperation envisaging, inter alia, the provision of technical support by the WBG to the Commission for Protection of Competition to boost competition and regulate markets in the Republic Serbia. The selection and prioritization of sectors are carried out based on the WBG Markets and Competition Policy Assessment Tool (MCPAT). For the purposes of this project, the inquiry was conducted by the Compass Lexecon and Karanović & Partners Consortium.

The subject of the inquiry is the market for cargo transportation by railway, providing an in-depth analysis of the competition environment of this market along the value/supply chain, market structure and dynamics, regulatory environment and market performances, in addition to identifying practices and rules that can distort the level playing field and facilitate non-competitive market outcomes.

The inquiry found no material elements that would indicate an infringement of the competition rules. Instead, the main reasons for insufficient market development established in the Report are as follows: low quality of rail infrastructure, outdated train path allocation procedures, and the lack of intermodal transport terminals, constituting substantial barriers to entry and business growth. Despite the deficiencies noted, it is established that the cargo transportation market in the Republic of Serbia is still in the early stages of development since it is open to competition only since 2016. As one of the reasons for such suboptimal situation, the authors also state the domestic price regulation policy in force, noting that the fixed tariffs for national transportation services as provided by the Government of the Republic of Serbia hinder price competitiveness.

The Commission hereby wishes to express its gratitude to all undertakings providing requested information during the inquiry and invites all persons and other experts to provide their commentaries to the Report no later than September 10, 2020, to the email address office.kzk@kzk.gov.rs, with annotation: Commentary to the Sector Inquiry into the Rail Freight