Serbia has taken all necessary steps towards the full implementation of the Law on Protection of Competition. In order to further improve the efficiency of competition policy enforcement in Serbia, it is necessary to secure the expansion of capacities of the Commission for Protection of Competition – states one of the commentaries provided by experts of the Organization for Economic Co-operation and Development (OECD) in its regular report on competitiveness in South East Europe.

This publication provides a comprehensive assessment of economic performances and regional competitiveness in 17 fields, aimed to assist the Western Balkans countries in creating improved development policies. In the course of drafting this assessment, from early 2016 to the beginning of 2018, the OECD has cooperated with SEE countries, specifically with Serbia, Albania, BiH, Republic of Macedonia, Montenegro, in order to secure a facts-based analysis, which is a prerequisite for delivering support in the structural reform process.

The Commission for Protection of Competition of the Republic of Serbia took an active role in drafting this document.

The Commission for Protection of Competition has instituted ex officio proceedings for investigation of infringement of competition against 172 undertakings operating on the baby care products market. This is the seventh such proceedings opened this year against undertakings operating on the baby care products market.

As in the case of previous six proceedings instituted against undertakings operating on the baby care products market, the Commission has reasonably assumed that the seller and buyers of baby care products have set selling prices and other conditions of trade when arranging the cooperation. The reasonable assumption in this proceedings is based on the fact that the agreements concerned contain the provisions that fix resale prices. The provisions mentioned restrict buyers to independently and autonomously make business decisions relating to the respective pricing policies.

The Law on Protection of Competition defines restrictive agreements as agreements between undertakings which as their purpose or effect have a significant restriction, distortion or prevention of competition in the territory of the Republic of Serbia. They may have a form of contracts, certain contract provisions, express or tacit agreements, concerted practices, as well as decisions made by associations of undertakings, which directly or indirectly set the purchase or selling prices or other conditions of trade.
The Commission believes that the baby care products market is of utmost importance for consumers, as well as for the society as a whole and, for that purpose, all instituted proceedings relating to this market are considered to be of primary importance for the Commission which works intensively on a sector inquiry into the overall baby equipment market, the results of which will be presented to the general public.

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

The Commission for Protection of Competition has instituted ex officio proceedings for investigation of infringement of competition on the payment card market against MasterCard payment organization, comprised of companies MasterCard Incorporated, 2000 Purchase Street, Purchase New York 10577, USA; MasterCard International Incorporated, 2000 Purchase Street, Purchase New York 10577, USA; and, MasterCard Europe S.p.r.l, Chaussee de Tervuren 198A, V-1410 Waterloo, Belgium (hereinafter, MasterCard).

The Commission has reasonably assumed that MasterCard, as an association of undertakings on the market of the Republic of Serbia, sets fallback interchange fees in an unfair amount, implemented by MasterCard bank members in the territory of the Republic of Serbia, which are several times higher than those implemented in EU countries.

Considering the fact that interchange fees determine a floor for the price which merchants must pay as a service charge for accepting payment cards to banks, the Commission has reasonably assumed that the competition between acquiring banks is in such manner restricted, which are prevented from negotiating the amount of merchant service charge below the interchange fee. That in turn may affect the consumers if merchants pass on such merchant fees to all consumers through higher retail prices, making products or services more expensive irrespective whether the payment is made by using payment cards or in cash, and potentially adversely affecting the competition on the payment card issuing market in the territory of the Republic of Serbia considering the banks’ incentive to offer payment cards that yield the highest interchange fee revenues.

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

The organizers of this year’s annual international conference hosted by ACE, Association of Competition Economics, have selected the case conducted by the Commission for Protection of Competition of the Republic of Serbia concerning the edible sunflower oil production and sales market as a representative competition case to be presented to participants of this renowned event.

The conference gathering competition economists from around Europe will take place in Bologna (Italy), mid-November this year. The CPC case was selected among dozens of nominated antitrust cases. One of the selection criteria was that the case illustrates certain advances in the use of economics in competition enforcement or to be of particular interest to competition economists.

The Commission for Protection of Competition of the Republic of Serbia sees the news on the selection of this competition case as additional acknowledgment for results achieved in advancing economic expertise during the last couple of years, reflecting on the quality of its decisions.

Since its creation in 2003, ACE’s main activity has been an annual conference bringing together competition economists. This year’s conference is expected to bring together numerous representatives of European competition authorities, reputable consulting companies and academia, working to exchange related experiences in assessing the effects of operational activities of competition authorities.

President of the Commission for Protection of Competition, Dr. Miloje Obradović, has met today with Ambassador of Japan to Serbia, H.E. Junichi Maruyama. Dr. Obradović shared his ideas with H.E. Maruyama on the possible extension of excellent cooperation established between the Commission for Protection of Competition of the Republic of Serbia and the Embassy, but also with the Japanese competition authority, JFTC.

Ambassador Maruyama also welcomed qualitative cooperation built with the Commission for Protection of Competition and intensified exchange of experiences achieved between the competition authorities of Japan and Serbia. In support of that, the interlocutors have recalled the previously organized two-day seminar held in Belgrade, where renowned Japanese experts spoke on the issue of current and future challenges of Japan in fighting cartels and bid rigging, in addition to the seminar held in Tokyo, attended this year also by a staff member of the Commission for Protection of Competition of the Republic of Serbia.

H.E. Maruyama has informed President Obradović on antitrust cases which recently have been the focus of attention of the Japan Fair Trade Commission, as well as on anticipated case-related effects affecting the improvement of competition policy in Japan.