Commission for Protection of Competition
Instituted Proceedings against PUC Gradska Toplana Niš

kzkThe Commission for Protection of Competition has instituted an ex officio proceedings for investigation of infringement of competition, against Public Utility Company Gradska Toplana Niš, in order to establish the existence of infringement of competition, namely, the abuse of dominance from Article 16 of the Law on Protection of Competition.

The State Audit Institution has previously established that the price of thermal energy supply services has been set in a manner which deviates from the prescribed methodology, resulting in an increased amount of the service cost relative to the level that would have resulted from the use of prescribed methodology for the calculation of thermal energy supply prices for end-users. The State Audit Institution has also found that connection costs to the district heating network are calculated in a manner not provided for by the relevant legal framework. The Commission reasonably assumed that such invoicing, in a manner as established by the State Audit Institution, could depart from the “cost principle”, which may represent an anticompetitive action from Article 16(2/1) of the Law on Protection of Competition. The Commission will investigate and establish the existence of a potential infringement of competition in full and complete compliance with Article 41 of the Law.

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 Savska St., Belgrade.

Commission President Spoke at the Meeting of the Subcommittee for Internal Market and Competition

kzk-euPresident of the Commission, Dr. Miloje Obradović, spoke at the meeting of the Subcommittee for Internal Market and Competition, held in Belgrade.

Dr. Obradović introduced EC representatives to all activities concerning the implementation of the Law on Protection of Competition and the degree of compliance of national competition regulations with EU acquis, which fall under the commitments set out in Article 73 of the Stabilization and Association Agreement. He also reminded the audience that the Commission is currently drafting a new competition act, which should contribute to further enhanced implementation of competition policy, in addition to its full compliance with other regulations of the Republic of Serbia, foremost with the Law on General Administrative Procedure.

The Commission President also presented data on results of competition policy implementation during the previous period, noting that the executive authorities in a growing number of cases accept the opinions issued by the Commission for Protection of Competition, proving crucial in the context of ensuring a level playing field for all undertakings.

In his address, the Commission President underlined that institution which he heads, in full and complete compliance with the possibilities and competences, strives to contribute to creating projects which would bring the subject of competition policy closer to judges towards achieving professional specialization in competition cases, which would also have an impact on the increasingly efficient implementation of the Law on Protection of Competition. In that context, President Obradović underlined, as part of the EU Twinning project where the Commission for Protection of Competition is a project beneficiary, a series of workshops will soon be held where representatives of the judicial branch will have an opportunity to acquire qualitative know-hows necessary for enhanced implementation of competition policy in the Republic of Serbia.

“The Commission continues to work intensely on raising the level of awareness on the importance of competition policy in Serbia, while also implements an open-door policy towards all interested parties when drafting regulations, all directed at ensuring the Commission’s full operational transparency”, President of the Commission, Dr. Miloje Obradović, said to his Brussels counterpart.

During the meeting of the Subcommittee, which is regularly held as part of Serbia’s EU accession process, is said that our country is following the dynamics of competition policy development in the EU, and endeavors to align, to the extent possible, related national standards against EU standards. That has also been reconfirmed by the EC assessment given in its recently published 2017 Progress Report, where is underlined that competition policy implementation capacity has increased, both in the number of antitrust cases and the relative size and significance of companies under investigation, as well as that the Commission constantly improves its work, which positively affects the enabling environment for business development in the Republic of Serbia.

JFTC Official Visits the Commission

kzk-jftcPresident of the Commission for Protection of Competition, Dr. Miloje Obradović, received a visit from Mr. Hiroshi Yamada, Senior Official at the Japan Fair Trade Commission – JFTC.

Dr. Obradović introduced Mr. Yamada to activities and plans of the Commission for Protection of Competition and emphasized the importance of the support provided to the Commission by Japan, as a country, Embassy of Japan in Belgrade, as well as by the Japan Fair Trade Commission. In that regard, he underlined the need to further deepen cooperation, both under the technical assistance programs and exchange program opportunities for competition policy experts.

The Japan Fair Trade Commission representative presented plans of this authority for expansion of cooperation with Serbian colleagues. The JFTC is very interested in supporting Serbia towards further compliance of national legislative framework against EU acquis. Also, Mr. Yamada presented a readiness of this institution to provide technical assistance to the Commission for Protection of Competition, and also presented an invitation to the Commission’s representatives to attend a conference within the ICN Merger Workshop, to be held in November this year in Tokyo.

The Japan Fair Trade Commission – JFTC, marked 70 years of history as an enforcement agency last year, and also celebrated the 70th anniversary of the implementation of the Antimonopoly Act in Japan.

The meeting was also attended by First Secretary of the Embassy of Japan in Belgrade, Ms. Atsuko Shiotani, member of the Council of the Commission for Protection of Competition, Dr. Veljko Milutinović, and Senior Advisor at the Division for Competition Advocacy and International Affairs, Ms. Nina Vasić.

Commission Reestablished the Infringement of Competition by EPS Distribucija

kzk-ekofOn June 18, 2018, the Commission for Protection of Competition enacted a decision in the repeated proceedings, complying with the judgment of the Administrative Court. The said judgment annulled the previous decision of the Commission on the establishment of competition infringement by company EPS Distribucija and referred back the case to the Commission for assessment.

As in the case of earlier decision-making process, the Commission found on this occasion as well that company EPS Distribucija holds a dominant position which has been abused.

VINCI Airports Serbia d.o.o – AD AERODROM NIKOLA TESLA Concentration Approved

kzk-ekofThe Commission for Protection of Competition approved the concentration of undertakings created by acquisition of control on the part of company VINCI Airports Serbia d.o.o. over business operations of company AD AERODROM NIKOLA TESLA, relating to airport management operations at Nikola Tesla Airport in Belgrade.

The subject of target business operations relates to concession assets, as defined in the Concession agreement for financing, development through construction and reconstruction, maintenance and management of the infrastructure of AD Aerodrom Nikola Tesla Beograd and carrying out airport operator activities at AD Aerodrom Nikola Tesla in Belgrade. VINCI Airports Serbia d.o.o. operates within the VINCI Group, who have not hitherto carried out airport operator activities nor conducted business operations on the airport services market in Serbia.

The decision will be published on the Commission’s website when related conditions are met, that is, on the expiry of the period for bringing an appeal against the conclusion on data protection.