Following an ex officio investigation into a potential infringement of competition law, initiated on April 4, 2024, against Metabo Centar Kragujevac and KAPRO INDUSTRIES LTD, Israel, the Commission determined that the aforementioned undertakings entered into a restrictive agreement with the objective of substantially restricting, distorting, and preventing competition, as set forth under Article 10. Consequently, the Commission has adopted appropriate measures to safeguard competition.

The proceedings were initiated upon receipt of information indicating that Metabo Centar Kragujevac, acting as the importer of mechanical and laser measuring instruments manufactured by Kapro, exerted pressure—through the manufacturer KAPRO INDUSTRIES LTD of Israel—on suppliers of Kapro-branded tools who serve other market participants in the Republic of Serbia, compelling them to discontinue their deliveries. This conduct effectively resulted in the elimination of competition within the wholesale market for these tools.

Based on the aforesaid, the Commission has reasonably concluded that Metabo Centar and Kapro Israel engaged in practices aimed at, or having the effect of, eliminating competition against Metabo Centar in the wholesale distribution of Kapro-branded tools within the Republic of Serbia. This conduct resulted in a significant reduction of market alternatives, compelling purchasers to pay inflated prices for these tools compared to what would have been possible had multiple distributors been available.

It was further determined that the agreements entered into by Metabo Centar Kragujevac with its customers contained clauses prohibiting the resale of Kapro-branded tools below their purchase price. Such restrictions may function as a mechanism to hinder imports, thereby preserving the pricing of Kapro tools at a controlled level. Furthermore, this practice constitutes an independent infringement of competition law through the imposition of minimum resale prices.