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Report on Sector Inquiry into the Retail Market Completed

kzkThe Commission for Protection of Competition has completed the sector inquiry into the retail sale in non-specialized stores with food, beverages or tobacco predominating, covering a three-year period (2014-2016). The subject of the inquiry was to establish relations between market competitors in terms of assessing their market share and relative power, as well as to analyze relations between suppliers and trade chains, and possible effects of those relations on the state of market competition, and to conduct an analysis of the role and importance of private label branding.

The comprehensive results of the inquiry and related conclusions presented in the Report may provide a good starting point for future research of not only the Commission for Protection of Competition but also other competent authorities of the Republic of Serbia, as well as undertakings themselves.

The integral part of the report also includes recommendations in which the Commission has underlined the need to establish a public trade register that would considerably facilitate the monitoring of this trade segment in the coming period, but also the importance of cooperation established with other state authorities in terms of submitting all relevant legislation and regulations for the provision of opinions.

Considering the exceptional importance of this trade segment, as of March 1, 2019, the Commission will launch a sector inquiry into competitive conditions prevailing on this market for 2017-2018.

The Commission hereby expresses its gratitude to all undertakings that have regularly submitted the requested data during the inquiry drafting process, and also calls all undertakings and other members of the expert public to send their commentaries to the report, as well as recommendations and suggestions for the follow-up inquiry, no later than February 28, 2019, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the sector inquiry into the retail market.

Sector Inquiry into Oil Derivatives Retail Market for 2017

FICThe Commission for Protection of Competition conducted a sector inquiry into the oil derivatives retail market in the Republic of Serbia in 2017. The subject of the inquiry was to determine the relationships between main competitors in the defined market segments towards making a comparative trend analysis by particular categories and identifying potential market weaknesses.

The integral part of the report consists of derived conclusions that allow for, inter alia, an overall perception of trends both on the oil production and refining market and on the oil derivatives retail market, in addition to the structure and trends in retail pricing of selected oil derivatives.

The Commission has assessed the degree of compliance with recommendations provided in previous reports and reiterated the significance of creating detailed statistical records on oil and oil derivatives and the importance of cooperation with other competent authorities towards creating a legal and business environment which will improve free competition in markets.

Considering the importance of oil sector for the energy industry and overall industrial development, as of March 1, 2019, the Commission will begin to conduct an inquiry into competitive conditions on this market for 2018.

The Commission hereby expresses its gratitude to all undertakings that have regularly submitted the requested data during the inquiry drafting process, and also calls all undertakings and other members of the expert public to send their commentaries to the report, as well as recommendations and suggestions for the follow-up inquiry, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the sector inquiry into the oil and oil derivatives market, no later than February 28, 2019.

Sector Inquiry into Baby Equipment Market Completed

FICThe Commission for Protection of Competition conducted a sector inquiry into the baby equipment wholesale and retail market. The Commission noted the need to analyze competitive conditions on said market considering the lack of prior knowledge of its structure, in addition to the fact that this sector is very often a topic of discussion in the media.
For the inquiry related needs, the Commission identified eight product categories within the broader baby equipment market, among them the products subject to VAT refunds, namely: baby milk, baby diapers, strollers, cribs, car seats, feeding chairs, clothes and footwear (for up to 3-year-olds).

The primary objective of the inquiry was to assess the size and volume of defined markets and identify major undertakings. The goal of the inquiry was also to detect particular tendencies and trends through a comparative analysis of turnover indicators and to draw concrete conclusions on market mechanisms.

The Commission hereby expresses its gratitude to all undertakings that have regularly submitted the requested data during the inquiry drafting process, and also calls all undertakings and other members of the expert public to send their commentaries to the report, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the baby equipment market inquiry, no later than January 31, 2019.

Considering the significance of the market concerned, against the background of free market access and free price system, and also the existing market structure, the Commission will continue to monitor the behavior of undertakings on the market concerned with due care and analyze circumstances potentially indicating the infringement of the Law on Protection of Competition.

Commission Conducted Inquiry into Competitive Conditions on the Cement Production and Sales Market

kzkThe Commission for Protection of Competition has conducted an inquiry into competitive conditions on the cement production and sales market in the territory of the Republic of Serbia for the period 2014-2017. For the inquiry-related purposes, the Gray (Portland) cement market is identified as the relevant product market. The primary objective of this inquiry was to look into the structure and dynamics of competition on the market concerned.

Within the Gray (Portland) cement market, the Commission has specifically analyzed the production, import, export, and wholesale segments.

The inquiry used data provided by the Ministry of Finance-Customs Administration on the cement import and export, publicly available data of the Statistical Office of the Republic of Serbia on the Grey cement production and sales, as well as data provided by undertakings, cement manufacturers and importers, namely: CRH (Srbija) d.o.o. from Popovac, Lafarge beočinska fabrika cementa d.o.o. from Beočin, “TITAN” d.o.o. from Kosjerić, CEMEX SRB DOO from Niš, and NEXE BETON DOO NOVI SAD from Veternik.

The Commission hereby expresses its gratitude to all undertakings that have regularly submitted the requested data during the inquiry drafting process, and also calls all undertakings and other members of the expert public to send their commentaries to the report, to the following email address: office.kzk@kzk.gov.rs, with annotation: The commentary to the cement market inquiry.

Considering the cement industry significance for the development of civil engineering and overall industrial development, as well as conclusions of this inquiry, the Commission will continue to monitor the behavior of this market’s undertakings with due care, and circumstances potentially indicating the infringement of the Law on Protection of Competition.

Commission Presented Phase One of the Sector Inquiry into Retail Market in Serbia

kzk-ekofThe Commission for Protection of Competition of the Republic of Serbia and the National Alliance for Local Economic Development (NALED) have organized a conference today, presenting the results of phase one of the sector inquiry into the food, beverages and tobacco retail market in the Republic of Serbia, prepared by the Commission for Protection of Competition.

During the conference held in the City Assembly of Belgrade, keynote addresses were given by President of the Commission for Protection of Competition Dr. Miloje Obradović, State Secretary at the Ministry of Trade, Tourism and Telecommunications Vesna Kovač, and Vladimir Čupić, President of the Food and Agriculture Alliance of NALED and Director of the Atlantic Group Representative Office for Serbia.

The inquiry was presented by Aleksandra Ravić from the Economic Analyses Division of the Commission for Protection of Competition.

kzk-ekofFollowing presentation of the inquiry-based results, a panel session on retail market prospects in Serbia was also held, attended by Dr. Siniša Milošević, Head of the Economic Analyses Division of the Commission for Protection of Competition, Bojana Amanović from the Ministry of Trade, Tourism and Telecommunications, Dr. Goran Petković, Full Professor at the Faculty of Economics in Belgrade, and Goran Kovačević, NALED Fair Competition Alliance and CEO of Gomex.

Concluded Competition Conditions Inquiry into the Tire Market

kzk-ekofThe Commission for Protection of Competition conducted a competition conditions inquiry into the tire market on the territory of the Republic of Serbia in the period 2014-2016.

The research is conducted with a view to achieve more qualitative and comprehensive approach in the work on sector-related cases. In that respect, the inquiry’s main objective related to the establishment of market structure, market coverage, relations between competitors and their respective market shares.

This inquiry is prepared in accordance with the provision of Article 21(1/6) of the Law on Protection of Competition, stipulating the Commission’s competence to monitor and analyze conditions of competition on individual markets and in individual sectors.

For the purposes of this inquiry, the following relevant markets are defined and individually analyzed:

• motor vehicle tire market,
• bus and truck tire market,
• motorcycle and bicycle tire market,
• agricultural vehicles and machinery tire market,
• construction and industrial vehicles and machinery tire market.

The Commission also analyzed the production and import as segments of supply, in addition to the export and sales on the domestic market as segments of demand for the tires concerned.

The main sources of data and information for the preparation of this inquiry are data provided by the Customs Administration of the Ministry of Finance, data submitted by undertakings, as well as publicly available data, including Internet-based data and current regulations. The Commission forwarded requests for the submission of information to tire manufacturers in Serbia, namely: Tire manufacturing company Tigar tyers doo Pirot, companies Trayal korporacija ad Kruševac and Cooper tire & rubber company Serbia doo Kruševac, in addition to the largest tire dealers and sellers.

Concluded Sector Inquiry into the Oil Derivatives Retail Market for 2016

kzk-ekofThe Commission for Protection of Competition concluded a sector inquiry into the oil derivatives retail market in 2016 in the Republic of Serbia. The subject of the inquiry was the establishment of relations between main competitors in defined market segments with the objective to conduct a comparative inquiry into fluctuations of individual categories and identify potential market weaknesses.

The integral part of the report relates to derived conclusions based on which, inter alia, tendencies may be perceived, both on the oil production and processing market and on the oil derivatives retail market, as well as the structure and fluctuation trends in retail prices of selected oil derivatives.

The Commission assessed a level of compliance with the recommendations provided in previous reports, and once again pointed to the significance of establishing a precise statistical records on oil and oil derivatives, in addition to the importance of cooperation with other competent institutions towards creating a legal and business environment to advance the free market competition.

Considering the importance of the oil sector for energy activity and overall industrial development, as of March 1, 2018, the Commission will open a competition conditions inquiry into this market for 2017.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, as well as suggestions for the continuance of the inquiry, no later than February 28, 2018, to email address: office.kzk@kzk.gov.rs, with the subject line: Comments to the sector inquiry into the oil and oil derivatives market.

Commission Conducted Competition Conditions Inquiry into the Sports Footwear, Clothing and Equipment Market

NIS EKSPRESThe Commission for Protection of Competition conducted a competition conditions inquiry into the sports footwear, clothing and equipment market on the territory of the Republic of Serbia.

The inquiry is conducted with the objective of establishing more qualitative and comprehensive approach in cases concerning this sector, but also towards raising awareness and education level of undertakings, since all, including this activity as well, are directed at securing efficient competition on the territory of the Republic of Serbia.

The subject of the inquiry related to the collection and elaboration of data on procurement and sales of sports footwear, clothing and equipment in the period 2014-2016. In line with the data submitted by undertakings for inquiry-related purposes, the Commission analyzed the market structure, relations between main competitors and their market shares. In this respect, researchers have established a dynamic growth, high concentration of observed markets, as well as revenue increase of all undertakings generated from the sales to end-users and other dealers. Considering all specificities of this market, the Commission will continue to monitor the sector concerned with a particular attention in the period to come as well.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, to email address: office.kzk@kzk.gov.rs, with the subject line: Comments to the sports footwear, clothing and equipment market inquiry.

Competition Conditions Inquiry into Software and IT Equipment Market from 2014 – 2016

kzk-ekofThe Commission for Protection of Competition also conducted a competition conditions inquiry into software and IT equipment market on the territory of the Republic of Serbia.

For the inquiry related needs, the Commission identified two relevant markets within a wider information and communication technology (ICT) market – software wholesale market, and hardware wholesale market (computers and IT equipment). Within such defined markets, particular attention is placed on the software and IT equipment public procurement markets.

The basic objective of the inquiry was to estimate the size and volume of defined markets, identify the most important undertakings operating on such defined markets and to assess their market share, as well as respective relative market power.
The subject of this inquiry related to the collection and elaboration of data on generated sale revenues pertaining to the software and computers and IT equipment on the domestic and foreign markets, as well as on generated revenues based on the participation ratio in public procurement procedures.

The inquiry used data provided by the Public Procurement Office on implemented software and IT equipment public procurements from 2014-2016, in addition to the conducted investigation into the largest software and IT equipment manufacturers and distributors founded on 42 company-based sample. For the inquiry related needs, the Commission also used publicly available data and information on the ICT sector, data from the balance of services published by the National Bank of Serbia, and data provided by the Statistical Office of the Republic of Serbia.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition conditions inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the report, to email address: office.kzk@kzk.gov.rs with reference: Comments to the software and IT equipment market inquiry.

Conducted Market Inquiry into Raspberry Purchase and Exports

kzk-ekofThe Commission for Protection of Competition conducted a competition conditions inquiry into the raspberry purchase and export market on the territory of the Republic of Serbia.
The inquiry is conducted with the objective of investigating the existence of a reasonable assumption on the presence of competition infringement on the raspberry purchase market effected on the part of buyers (owners of cold storage facilities), pursuant to which the Commission would be able, in accordance with its competences, to institute an investigative proceeding ex officio.

The subject-matter of this inquiry was the collection and elaboration of data on production, purchase, import and export of raspberries and the establishment of circumstances under which the 2017 raspberry harvest purchase is conducted. For the purpose of conducting the inquiry, raspberry import/export data for 2010-2017 are collected from the competent authorities. In line with submitted data, the largest raspberry exporters are identified and contacted by the Commission with a special request for the submission of data and information.

Pursuant to all collected and analyzed data and information, the Commission was unable to derive a conclusion on the existence of disturbances on the 2017 raspberry harvest purchase market, which could be the result of preventing, restricting or distorting competition on the part of undertakings operating on the related market.

The inquiry also indicated on numerous issues of a systematic nature that both raspberry producers and buyers encounter. Such issues, as per understanding of the Commission, require the involvement of all relevant institutions towards finding a long-term and sustainable solution, so that the continued existence of this extremely important fruit-growing branch yielding significant export revenues would not be jeopardized.

The Commission wishes to express its gratitude to all undertakings for their duly submission of requested data during the competition inquiry process, and at the same time calls upon undertakings and other expert public to submit their comments to the inquiry, to email address: office.kzk@kzk.gov.rs with reference: Comments to the raspberry market inquiry.