Commission for Protection of Competition
Investigation Procedure Following Merger Notification, Don Don

kzkBased on a conclusion enacted by the Commission President, the Commission for Protection of Competition has resumed proceedings ex officio in the matter of a merger which, according to the notification submitted by company Privredno društvo za proizvodnju hleba i peciva Don Don d.o.o. Beograd, is created by acquisition of direct individual control over a part of company Akcionarsko društvo za preradu žitarica Žitopromet, Zaječar.

The proceedings will be completed by the enactment of a decision within the statutory period of four months from the date of initiation of proceedings ex officio.

During the course of investigation procedure, the Commission will investigate whether the implementation of such concentration would significantly restrict, distort, or prevent competition on the market of the Republic of Serbia or its part, and especially if that restriction, distortion, or prevention would be the result of creating or strengthening of a dominant position.

The Commission will carry out all necessary actions, determine all facts and adduce evidence necessary for the definition of the relevant market, establish the structure of the relevant market, degree of concentration of the relevant market, and identify current and potential competitors, market position of the merger parities, legal and other barriers to entry into relevant markets, user interests, etc.

The Commission invites all persons in possession of data, documents or other relevant information that could contribute to the accurate fact-finding in this proceeding to submit said evidence at the earliest possible opportunity to the Commission, to the address 25/IV Savska St., Belgrade.

Commission Established Abuse of Dominance by Company Niš-ekspres

kzkThe Commission for Protection of Competition has established that Joint stock company for transportation services Niš-ekspres Niš has abused its dominant position on the bus station platform entrance market in the territory of the City of Niš, thus infringing competition rules from Article 16 of the Law on Protection of Competition.

As the Bus station Niš management company, Niš-ekspres a.d. has charged different prices for bus station services to passengers with various bus tickets, depending on the travel distance in km.

Furthermore, the Commission has established that company Niš-ekspres a.d. has also applied dissimilar business conditions with regard to persons purchasing platform tickets. They have been charged an amount that exceeded the highest amount of the bus station service fee charged with a bus ticket purchase covering the bus station platform entrance.

Niš-ekspres is ordered to pay the amount of 40,726,439.00 RSD into the Budget account of the Republic of Serbia as a measure for protection of competition, which corresponds to 1.3% of the aggregate turnover generated in the Republic of Serbia in the year preceding the launch of antitrust investigation proceedings.

Commission President at the Subcommittee Meeting in Brussels

kzkPresident of the Commission for Protection of Competition Dr Miloje Obradović took part, with colleague Marija Antić, in the ordinary meeting of the Subcommittee on Internal Market and Competition, held in Brussels.

Dr Obradović provided a brief for the EC representatives on the progress reached within NG 8: Competition policy. The audience was also kept abreast of current events relating to the implementation of the Law on Protection of Competition and information on the Commission’s interim enforcement record, all of which are of particular importance in the context of ensuring a level playing field for all undertakings.

The Commission President also presented a detailed account of activities in connection with advancing knowledge of the general public on the importance of the culture of compliance with competition law.

- The Commission works intensely on raising awareness on the importance of competition policy in Serbia and insists on practices for the inclusion of all interested stakeholders when considering the overall needs for regulatory improvements aimed at ensuring the Commission’s operational transparency, said President Obradović during the Subcommittee meeting. – In the previous period, the Commission has increased its administrative and institutional capacities and remained focused on efficient and effective implementation of the Law towards ensuring more effective protection of competition in Serbia.

At the Subcommittee meeting regularly held as part of Serbia’s EU accession process is stated that our country follows the dynamics of EU competition policy development and strives towards the harmonization of its standards with respective EU standards to the extent possible.

That is also confirmed by the EC assessment in its recently published the 2019 Progress Report on Serbia, noting the progress in the number of detected cases of anticompetitive behaviors, increased number of sector inquiries and continued competition advocacy activities. However, the Report also references the need for intensified consultations with the Commission on all draft laws concerning competition.

EC Report on Serbia: Commission’s Progress Across the Board

kzkThe Commission for Protection of Competition of the Republic of Serbia has the administrative capacity, that is, qualitative experts to handle investigations on alleged infringements. The CPC’s investigations of large private and public companies have further contributed to improving its credibility and public image, says the 2019 EC Progress Report on Serbia, presented today at the Brussels headquarters of the European Commission.

In the Annual report covering the period from January 2018 to February 2019, it is mentioned that the Commission is the main institution responsible for implementing the legal framework governing competition, which is in line with all relevant provisions of the SAA and the acquis. The Report notes the progress in the number of detected cases of anticompetitive behaviors, increased number of sector inquiries and continued competition advocacy activities. However, the Report references the need for intensified consultations with the Commission on all draft laws concerning competition.

The activities of the Commission for Protection of Competition are reviewed in the said document under Negotiation Chapter 8: Competition policy.

Commission Among the Founding Members of the ICN’s New Protocols

kzkThe Commission for Protection of Competition of the Republic of Serbia has joined the group of authorities as founding members of the International Competition Network’s Framework for Competition Agency Procedures, aimed at fostering fair, informed and non-discriminatory procedures in competition law enforcement around the world and increased transparency.

New protocols of the International Competition Network agreed in early April this year are designed to streamline the enforcement procedures, while safeguarding procedural fairness and non-discriminatory approach of member countries towards ensuring that local competition rules afford national companies no less favorable treatment than the one granted to companies from other jurisdictions in like circumstances. The protocols are designed so as to ensure that respective competition authorities cannot rig outcomes in favor of privileged competitors, and in that manner put pressures on the economies of other countries.

The motive of the Commission to be among the founder members of new protocols of the International Competition Network was to send a clear message to all undertakings operating or planning to operate in the territory of the Republic of Serbia that this institution will continue to work in full respect of the principles of transparency and legal certainty of their investments, as regards the implementation of competition policy.