The Commission for the Protection of Competition has prepared proposals for four new regulations concerning exemptions from the prohibition of agreements, and in particular:

- Proposal of the Regulation on categories of vertical agreements exempted from the prohibition of restrictive agreements;
- Proposal of the Regulation on categories of vertical agreements on repair and maintenance of motor vehicles and agreements on the sale of spare parts in the motor vehicle sector exempted from the prohibition of restrictive agreements; and
- Proposal of the Regulation on categories of technology transfer agreements exempted from the prohibition of restrictive agreements;
- Proposal of the Regulation on categories of agreements in the railway and road transport sector exempted from the prohibition of restrictive agreements.

In accordance with the provisions of the Law on the Planning System (“Official Gazette of the RS” 30/18), the Law on State Administration (“Official Gazette of the RS” 79/05, 101/07, 95/10, 99/14, 30/18, and 47/18), the Rules of Procedure of the Government (“Official Gazette of the RS,” nos. 61/06 – consolidated text, 69/08, 88/09, 33/10, 69/10, 20/11, 37/11, 30/13, 76/14, and 8/19 – other regulation), as well as relevant by-laws, consultations have been conducted in the process of preparing the proposals for the adoption of the aforementioned regulations.

The objective of conducting consultations was for the Commission to collect and assess pertinent information, viewpoints, remarks, and suggestions from various stakeholders, particularly legal entities and individuals whose positions, rights, obligations, and legal interests may be impacted by the proposed regulations.

The consultations were conducted through the eKonsultacije Portal and took place from July 4, 2024, to July 15, 2024. In the course of the consultation process, the Commission received proposals and comments concerning the draft regulation on categories of vertical agreements exempted from the prohibition of restrictive agreements, as well as the draft regulation pertaining to categories of vertical agreements for the repair and maintenance of motor vehicles, including agreements for the sale of spare parts in the motor vehicle sector that are exempt from the prohibition of restrictive agreements. As a result of amendments in the draft regulation on categories of vertical agreements exempted from the prohibition of restrictive agreements, adjustments were made concerning vertical agreements within the draft regulation on categories of technology transfer agreements exempted from the prohibition of restrictive agreements.

A meeting took place at the Commission for Protection of Competition involving representatives from the Ministry of Internal and Foreign Trade, the Republic Secretariat for Public Policies, the National Academy for Public Administration, and the Commission, within the framework of the IPA III project entitled “EU Support for the Development of Serbia’s Internal Market,” financed by resources from the European Union.

The focus of the meeting was on preparing training for civil servants engaged in the drafting of regulations, with the goal of improving their knowledge of competition rules and equipping them to create legislation that is either pro-competitive or neutral regarding market competition. The meeting was attended by competition expert Pablo Delgado Cubillo from the CNMC, the Spanish competition authority.

On April 4, 2024, the Commission for the Protection of Competition initiated proceedings against “Društvo sa ograničenom odgovornošću za trgovinu električnim alatima Metabo centar Kragujevac” and KAPRO INDUSTRIES LTD from Israel, based on a reasonable assumption of a competition infringement through the conclusion of a restrictive agreement in accordance with Article 10 of the Law on the Protection of Competition.

The decision to initiate proceedings was delivered to the “Metabo Centar Kragujevac” company on April 4, 2024, when authorized officials from the Commission for the Protection of Competition also conducted a dawn raid at the company’s premises.

As KAPRO INDUSTRIES LTD from Israel, the second party in the proceedings, does not have a direct presence in the territory of the Republic of Serbia, nor an affiliated company, the decision to initiate proceedings was formally delivered on July 1, 2024, through official channels, specifically via diplomatic means, facilitated by the Embassy of the Republic of Serbia in Israel.

The proceedings were initiated based on information that “Metabo Centar Kragujevac”, as the importer of mechanical and laser measuring instruments produced by “Kapro,” through the manufacturer KAPRO INDUSTRIES LTD from Israel, has been exerting pressure on other foreign suppliers of “Kapro” tools, urging them to halt deliveries to other market participants in the Republic of Serbia. In the course of the investigation, a comparison of price lists from several market participants who imported tools of the aforementioned brand revealed that the prices of products in the price list of “Metabo Centar Kragujevac” were higher than the prices of identical products in the price lists of other observed market participants, who were being restricted from importing.

Based on the foregoing, the Commission has reasonably concluded that “Metabo Centar Kragujevac” and “Kapro” Israel are undertaking actions with the aim of, or resulting in, the elimination of competition for Metabo Center in the wholesale market for “Kapro” branded tools within the territory of the Republic of Serbia. Consequently, customers purchasing these tools are incurring higher costs than they would if additional distributors were permitted to operate in the market.

It was further established that the contracts concluded by “Metabo Centar Kragujevac” with its customers include a prohibition on selling below the purchase price, which may serve as a supporting mechanism for the import ban to maintain the prices of “Kapro” branded tools at a desired level. This practice also constitutes an infringement of competition in the form of establishing minimum resale prices.

All individuals possessing data, documents, or other relevant information that may be pertinent to establishing the factual circumstances in the aforementioned proceedings are kindly invited to submit such information to the Commission for Protection of Competition, located at 25 Savska Street, Belgrade.

The Commission for Protection of Competition has, ex officio, initiated proceedings against the company VILLAGER, trgovina na debelo, d.o.o, Ljubljana, Republic of Slovenia, to investigate a concentration that was executed without approval in accordance with the Law on Protection of Competition. It is reasonably presumed that this concentration arose from VILLAGER, d.o.o. acquiring control over SEMENARNA Ljubljana, a production and trading company, d.o.o., located in Ljubljana, Republic of Slovenia.

The Commission will evaluate the criteria prescribed by law (Article 19 of the Law on Protection of Competition) during the investigative proceedings to determine the permissibility of the concentration. In particular, it will consider the fact that this concentration was executed without notification, which constituted an obligation for the market participants. The law provides that concentrations among market participants are permissible, except where they would significantly restrict, distort, prevent competition in the market of the Republic of Serbia. This is particularly relevant if that restriction, distortion or prevention is the result of creating or strengthening of a dominant position.

The Commission will ascertain the essential facts, evidence, and other elements that will serve as the basis for its decision regarding the potential imposition of competition protection measures, specifically measures of deconcentration.

Through the conclusion initiating the proceedings, all individuals possessing data, documents, or other relevant information that may be pertinent to establishing the factual circumstances in the aforementioned proceedings are kindly invited to submit such information to the Commission for Protection of Competition, located at 25 Savska Street, Belgrade.

The Commission for Protection of Competition has, ex officio, initiated proceedings against the company DRUŠTVO ZA PROIZVODNjU PROMET I USLUGE AGROMARKET DOO KRAGUJEVAC, based in Kragujevac, to investigate a concentration that was carried out without the necessary approval in accordance with the Law on Protection of Competition. It is reasonably presumed that this concentration resulted from AGROMARKET DOO acquiring control over AM Hotel, a specialized real estate company located in Ljubljana, Republic of Slovenia.

The Commission will assess the criteria established by law (Article 19 of the Law on Protection of Competition) during the investigative proceedings to determine the legality of the concentration. In particular, it will take into account that this concentration was executed without notification, which constituted an obligation for the market participants. The law stipulates that concentrations among market participants are permitted, unless they significantly restrict, distort, or prevent competition in the market of the Republic of Serbia, particularly if such restriction, distortion, or prevention is the result of creating or strengthening of a dominant position.

The Commission will ascertain the critical facts, evidence, and other elements that will serve as the basis for its decision regarding the possible implementation of competition protection measures, specifically measures aimed at deconcentration.

Through the conclusion that initiates the proceedings, all individuals in possession of data, documents, or other relevant information that may aid in establishing the accurate factual situation in this case are hereby invited to promptly submit such information to the Commission for Protection of Competition at the address: 25/IV Savska Street, Belgrade.