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Commission Determines Measure for Protection of Competition against Company „Prointer IT Solutions and Services“ for Implementation of Unapproved Concentration

kzk-ekofBased on submitted information, the Commission for Protection of Competition has instituted proceedings ex officio for investigating concentration created by acquisition of individual control on the part of company „Prointer IT Solutions and Services“ LLC Beograd, over company “Alti” LLC Čačak.

In the course of investigation procedure is established that the concentration is implemented without received prior approval of the Commission, thus violating the Law on Protection of Competition, and consequently resulting in determining measure for protection of competition against company „Prointer IT Solutions and Services“ LLC in the amount of 6.7 million dinars.

When determining the amount of related measure, the Commission has considered that said concentration would not cause adverse consequences and would be approved, if notified pursuant to legal obligation.

Signed Memorandum on Cooperation with the Faculty of Economics in Niš

kzk-ekofMember of the Council of the Commission for Protection of Competition, Marko Obradović, and Dean of the Faculty of Economics in Niš, Prof. dr sc. Jadranka Đurović Todorović, have signed the Memorandum on Cooperation between the Commission for Protection of Competition and the Faculty of Economics in Niš.

Memorandum on Cooperation defines the establishment of expert and educational cooperation between these two institutions in the competition policy area via organization of seminars, guest lecture series of the Commission’s experts, joint thematic workshops at the Institute of the Faculty of Economics in Niš, establishing academic internship programs and joint publishing activities in the competition policy area.

Signed document will enable joint activities to be placed on the promotion of competition policy and raising awareness of its significance within the academic and broader general public, to be achieved in cooperation with the Business Cooperation Center of Niš, in addition to introducing an academic course in the field of competition policy as an elective for Masters level students.

Memorandum on Cooperation with the Faculty of Economics in Niš is the fourth such agreement of the Commission signed with the academic community representatives.

Study Visit of the Federal Antimonopoly Service Representatives to the CPC

kzk-ekofCommission for Protection of Competition hosted a delegation of the Federal Antimonopoly Service of the Russian Federation in a three-day Study visit. FAS delegation, comprised of Ms. Elena Vladimirovna Beresneva, Advisor in the Department for Control over Chemical Industry and Agro-industrial Complex, and Ms. Julia Alekseyevna Haptaeva, Head Advisor in the Organizational and Analytical Department of the FAS Buryatia Regional Office, has been introduced with the organizational and operational structure of the Commission.

In the course of the Study visit, a series of lectures and workshops has been held during which employees of the Commission have shared experiences in regard to operational activities in detecting competition infringements, investigating market concentrations and preparing economic inquiries. Particular attention was placed on presenting proceedings that the Commission has conducted during the previous period, mainly concerning cases of prohibited agreements and abuses of dominance, as well as their influence on achieving equal conditions for all undertakings on specific markets. Also, cases of investigation proceedings conducted during the previous period by the Competition Infringements Division have been presented, in addition to the findings of economic inquiries, as well as operational plans of the Economic Inquiry Division.

This is the second Study visit of the FAS representatives to the Commission, organized pursuant to the Agreement on Cooperation signed during 2012 between the Federal Antimonopoly Service of the Russian Federation and the Commission for Protection of Competition of the Republic of Serbia. In accordance with the above-mentioned Agreement, seminars and training courses have been previously organized in the FAS Training Center in Kazan for the Commission Administrative and Professional Service staff, in addition to the previous year’s Study visit of the Russian colleagues in Serbia.

The visit is estimated as an outstanding manner of achieving bilateral cooperation between competition authorities and extremely useful tool towards accomplishing the exchange of experiences between employees of the Commission for Protection of Competition of the Republic of Serbia and the Federal Antimonopoly Service of the Russian Federation.

Israeli Ambassador Visits Commission

AFTERMARKETSPresident of the Commission for Protection of Competition, Dr. Miloje Obradović, received a visit of the Ambassador of the State of Israel to the Republic of Serbia, H.E. Alona Fisher Kamm.

Dr. Obradović introduced Ambassador Fisher Kamm with competences of the Commission for Protection of Competition and presented activities implemented to date, along with plans aimed at advancing and advocating competition policy in Serbia.

President of the Commission also expressed a desire for the Embassy of Israel in Belgrade to convey a substantial interest of the Commission for Protection of Competition of the Republic of Serbia to intensify cooperation with the Israeli competition authority, as one of the most developed and organized in the world.

Israeli Ambassador thanked for the invitation and emphasized that the role of the Embassy of Israel in Belgrade is foremost, to facilitate position of the current and attract new Israeli investments in Serbia. Also, Her Excellency expressed a pleasure concerning instituted initiative of the Commission for Protection of Competition that might result in a more intensive cooperation and exchange of experiences between two authorities, with the objective of advancing economic environment in Serbia.

Commission Forewarned of Potential Anticompetitive Behavior of Undertakings in Aftermarkets

AFTERMARKETSDuring the last year, the Commission for Protection of Competition has conducted the Sector Inquiry on Competition Issues in Aftermarkets (Serbian version only). These markets encompass, inter alia, provision of guarantees, repair services, turnover and use of spare parts for motor vehicles and best-selling home appliances – refrigerators and washing machines.
The main goal of this inquiry was to establish the structure and relations between undertakings, their market shares and market power, with the objective of detecting potential market vulnerabilities, that is, existence of conditions leading to the infringement of competition.

Since the adoption of this document and introduction of the general public with its findings, the Commission has been intensively involved in additional reviewing of this document, in the context of existence of potential competition infringements effected by undertakings operating in these sectors.

To this effect, the Commission came to certain findings that necessary may not mean that particular acts performed on these markets by a part of undertakings are considered to be prohibited, but that may pose a threat to competitive behavior and present endangerment of equivalence of all undertakings on the said markets.

The Commission formulated derived findings in the following documents – Information of Findings and Positions of the Commission regarding the Motor Vehicles Aftermarkets Inquiry, and Information of Findings and Positions of the Commission regarding the Home Appliances Aftermarkets Inquiry.

In these documents, the Commission has in more details elaborated on particular elements of business operations performed on the part of undertakings operating in the motor vehicles and home appliances aftermarkets, and expressed the concern due to the specific segments of contractual relations between undertakings that may indicate to potential competition infringements.

The Commission forwarded these findings to competent state authorities, business associations, as well as undertakings operating in the motor vehicles and home appliances aftermarkets, in order to forewarn them of the possibility of becoming the subject of the Commission’s proceedings in the case of failing to amend certain segments of agreements arranged with their suppliers or dealers.

Commission Instituted Proceedings against Frozen Food Industry “Frikom” LLC

kzk-ekofOn May 29, 2017, the Commission for Protection of Competition has instituted proceedings for investigating competition infringement ex officio against Frozen Food Industry “Frikom” LLC Belgrade, on the grounds of determining the existence of abuse of dominance on the ice cream distribution and sale markets. On the following day, May 30, 2017, authorized officials of the Commission have carried out a dawn raid in the premises of “Frikom” company.

Namely, by implementing legal competences concerning the use of an instrument that is found to be extremely efficient in detecting various forms of competition infringements, authorized officials of the Commission have carried out a dawn raid in “Frikom” LLC, and on the occasion performed an inspection of business premises, i.e. data, documents and belongings in two locations in Belgrade, whereby the party concerned and proprietor of premises and belongings have been informed on the matter only when the dawn raid was taking place.

Dawn raid is an instrument available to the Commission for Protection of Competition, pursuant to Articles 52 through 55 of the Law on Protection of Competition with the objective of detecting and preventing acts or actions of undertakings that as their purpose or effect have or may have a significant restriction, distortion, or prevention of competition.

Considering that the proceedings is only recently instituted, and that dawn raid is just one of the manners in which the Commission can collect necessary evidence, all persons in possession of data, documentation or other relevant information that might contribute to the fact-finding in this proceedings are called upon to submit the said to the Commission for Protection of Competition to the address: 25 Savska St., Belgrade.

Roundtable Held on “Significance and Challenges of Retail Trade Sector in Serbia in terms of Competition Policy”

kzk-ekofNALED and the Commission for Protection of Competition have organized a round table on the subject: “Significance and Challenges of Retail Trade Sector Development in Serbia in terms of Competition Policy”. The roundtable is organized so that representatives of companies operating in the retail trade sector in Serbia would be introduced to relevant details of a comprehensive inquiry project regarding retail trade market in Serbia instituted by the Commission for Protection of Competition; and also with the goal of calling upon those involved in this sector’s operations to present their proposals and suggestions toward drafting of this document, which is being prepared for the first time in our country. In addition, this inquiry encompasses the end-user and supply retail trade markets, focusing on relations between retailers and their suppliers, as well as the influence of private-label products affecting competition.

Participants of the roundtable event were welcomed by the President of the Commission for Protection of Competition, Dr. Miloje Obradović, and Vice Chairman of the Board of Directors of NALED, Goran Knežević, while the Head of Department for Economic Inquiries of the CPC, Dr. Siniša Milošević and his associates have introduced the audience with the implementation plan and goals of this sector inquiry.

President of the Commission for Protection of Competition, Dr. Miloje Obradović has emphasized that the Commission considers this task as highly significant, both in terms of the importance that this sector holds for the overall county’s economic activity, and concrete benefits for consumers, which is ultimately one of the core elements of an efficient competition policy.

Retail trade represents an economic sector with most prominent effect of a fair level playing field affecting consumers directly, having in mind that retail trade can achieve a direct contact with them, and concerning the rule of end-buyers ultimately bearing all the burden. Hence, I believe this inquiry can also contribute to the increased trust of consumers in undertakings directly if they are assured that everybody operates in accordance with the fair rules of the game, said President Obradović. – The Commission will extensively investigate current market structures, keeping in mind the great number of changes and takeovers occurring in the last decade, which will ultimately contribute to the increasingly improved and efficient protection of competition, thus enabling equal business operating conditions for all.

Participants recognized a joint interest in creating a realistic insight into conditions and relations on the food, beverages and tobacco retail trade markets, because the public often misperceives market shares in the retail trade sector, which harms and disturbs the reputation of undertakings directly, but also questions the efficiency of the Commission for Protection of Competition as well.


Representatives of the retail trade sector and suppliers participated at this roundtable, as well as delegates of the Ministry of Trade, law offices and expert public, while the event was organized within the Working group for Chapter 8 “Competition Policy” of the National Convent, chaired by the NALED.

Instituted Proceeding against “B2M” LLC, “Grafo Trade” LLC, “Trgodunav” LLC, “Master Clean Express” LLC, and JSC CI “Panonija“

kzk-ekofIn accordance with competences from Article 35 of the Law on Protection of Competition, the Commission for Protection of Competition has instituted proceeding for investigating competition infringement ex officio against companies “B2M” LLC – Belgrade, “Grafo Trade” LLC – Belgrade, “Trgodunav” LLC – Belgrade, “Master Clean Express” LLC – Palić, and JSC CI “Panonija“ – Pančevo.

As part of the proceeding, authorized officials of the Commission for Protection of Competition have conducted dawn raids on several locations of the listed undertakings in Belgrade, with the goal of collecting additional information.

During the proceeding, the Commission will investigate if the listed companies, as bidders participating in the public procurement tendering for the provision of consumables for individual and collective hygiene maintenance issued by the Ministry of Defense, have colluded as per sale prices and other trade related conditions to be implemented on the public procurement market.

All persons in possession of data, documentation or other relevant information that might contribute to the fact-finding in this proceeding are called upon to submit the said to the Commission for Protection of Competition to the address: 25/IV Savska St., Belgrade.

CONCLUSION on instituting proceeding ex officio – B2M LLC – TRGODUNAV LLC – GRAFO TRADE LLC – MASTER CLEAN EXPRESS LLC – JSC CI PANONIJA
Romanian Ambassador Visits Commission

kzk-ekofPresident of the Commission for Protection of Competition, Dr. Miloje Obradović, received a visit of the Romanian Ambassador to Serbia, H.E. Oana-Cristina Popa.

Dr. Obradović introduced Ambassador Popa to current activities, as well as plans of the Commission for Protection of Competition directed toward advancing and promoting competition policy in our country.

During the talks, President Obradović emphasized that excellent cooperation achieved by the Commission for Protection of Competition with the Romanian Competition Council, this year resulted in the Romanian competition authority titled as the honorable “Guest host” during the Competition Day of Serbia, ultimately results in more qualitative development of the institution he heads. This cooperation is of particular importance bearing in mind the fact that the Romanian Competition Council this year marks the 20th year operations anniversary, with the first ten years operating as an authority of the EU accession country, while during the last decade as its member.

To this effect, both parties jointly identified the need for intensive cooperation between the two authorities to be further advanced. The meeting was also attended by Marko Obradović, member of the Council of the Commission for Protection of Competition, Mihaela Osorio, Deputy Head of Mission, and Stefan Imre, Minister Counselor at Embassy of Romania in Belgrade.