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.