Commission for Protection of Competition
Press release on initiation of investigation procedure for competition infringement against business enterprises Fresenius Medical Care Srbija d.o.o. and Medicon d.o.o.

Press release on initiation of investigation procedure for competition infringement against business enterprises Fresenius Medical Care Srbija d.o.o. and Medicon d.o.o.

Commission for Protection of Competition initiated investigation procedure ex officio for infringement of competition, against business enterprises Fresenius Medical Care Srbija d.o.o. and Medicon d.o.o. and their specialized hospitals for hemodialysis, in order to investigate the existence of restrictive agreement under Article 10 of the Law on Protection of Competition, which restricts competition in the market for dialysis services in the Republic of Serbia.

Fresenius Medical Care Srbija d.o.o. and Medicon d.o.o. and their specialized hospitals for hemodialysis are, according to available information, the only private medical centers that can offer the provision of hemodialysis services in the Republic of Serbia for persons insured under the Republic Health Insurance Fund, for which there are no facilities for treatment in medical institutions provided by NHIF Network Plan. At one time, the above business enterprises submitted joint tenders in public procurements for the provision of hemodialysis, which completely excluded competition between these market participants. After the cessation of joint participation, these companies have submitted separate bids, but the specific facts and circumstances indicate that they continued to coordinate their participation in public procurements, which, if confirmed in the investigation procedure, constitutes a restriction of competition in the relevant market. Based on the above, Commission has reasonably assumed the existence of infringement of competition on the ground of consorted practice concerning participation in public procurements conducted by the Republic Health Insurance Fund for provision of dialysis services to persons insured under RHIF.

Commission shall, in investigation procedure, undertake evidentiary actions in order to determine decisive facts, which are important for assessing the existence of infringement of competition.

As always, Commission again pointed out that detecting and sanctioning cartels, especially bid regging in public procurements, is a priority in the work of the Commission on the grounds that this type of restrictive agreements is the most serious infringement of competition, which exclude all the benefits from competitive bidding in the market, increase the spending of budet funds of institutions that regulate public procurements and limit the choice of products/services.

The Commission takes this opportunity to draw attention to all market participants to the legal possibility to be exempted from payment of fine as merger remedy (which amounts up to 10% of total turnover), i.e. that the same be reduced, if they report to Commission existing agreements and/or provide evidence that will enable the issuing of decision on infringement of competition under Article 10 of the Law. The ”immunity” programme is regulated by Article 69 of the Law on Protection of Competition and relevant by-laws (Regulation and Guidelines of the Commission) published on the Commission’s Internet site www.kzk.gov.rs.

Commission for Protection of Competition carried out dawn raid

In the course of the past week, Commission initiated procedure for establishment of existence of infringement of competition relating to distribution of electronic cigarettes and liquid for electronic cigarettes, and on the strength of its legal powers carried out dawn raids of the premises of the parties on several locations in the territory of the city of Beograde. Procedures were initiated on the ground of suspicion that the undertakings concluded agreements on setting minimum prices in retail trade.

Dawn raid is an unannounced search of premises, i.e.data, documents and effects found in that place, of which a party i.e. holder of premises and property is informed on the spot, at the time of carrying out the search. This instrument is exceptionally efficient in uncovering cartel collusions and other forms of infringements of competition. During dawn raid, Commission had a full cooperation of parties to procedure.

The result of efficient implementation of policy preventing competition infringements is, above all, consumers welfare, through better selection, quality and lower prices of goods and services. Efficient competition policy provides also benefits for competitors, since by preventing cartels and abuse of dominant position, equal conditions for all undertakings are created.

At this instant, Commission is not in position to deliver any additional information, as not to endanger further investigation procedures.

Seminar: Methodology for defining relevant market

seminar odredjivanje relevantnog trzistaCommission for Protection of Competition, in cooperation with the Chamber of Commerce of Serbia, seeks to promote competition policy in Serbia. With regard to that, representatives of Commission for Protection of Competition participated, as lecturers, at the seminar held in the Serbian Chamber of Commerce organized in cooperation with that institution within the Project for Strengthening the Competition in Serbia financed by EU, which is a part of program for enhancement of competition policy in the Republic of Serbia, and implemented by German Agency for International Cooperation (GIZ). Mr. Milan Kostic spoke about methodology of determining the relevant market, while the role and practice of the Commission for Protection of Competition was presented by Mr.Nebojsa Milenkovic. Mr.Andrej Plahutnik discussed the assessment of effective competition and restrictions, prohibited constraints and importance of determining relevant market.

Competition rules in energy sector

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Representatives of Commission for Protection of Competition participated, as speakers, in the seminar dedicated to the field of competition, with a focus on challenges in energy sector.
Seminar participants were informed about sector inquiries of the market of petroleum products, as well as all illicit clauses imposed on long-term contracts on gas supply. The topic at the seminar was also the issue of price calculation, as well as the problems of vertical integration in production and distribution of electricity. Too, among topics discussed at seminar were basic provisions stemming from the EU Stabilization and Association Agrement regarding the separation of functions of production from supply and further distribution of energy to end consumers.

In cooperation with Serbian Chamber of Commerce and experts involved in project supported by EU intended to promote protection of competition in Serbia, Commission for Protection of Competition provides business community with opportunity to become familiar, through lectures, workshops and seminars, with basic rules in competition policy and competition protection.

Speakers at the seminar were Ms. Jelena Grahovac, from Commission for Protection of Competition, and experts involved in project, Mr. Andrej Plahutnik and Mr.Aleksandar Djelic, lawyer.

Serbian Chamber of Commerce, in cooperation with Commission for Protection of Competition, organized this seminar within the Project for Strengthening the Competition in Serbia financed by EU, and implemented by German Agency for International Cooperation (GIZ).

Memorandum on Mutual Understanding and Cooperation in the field of Competition between Republic of Serbia and Republic of Montenegro

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Commission for Protection of Competition of the Republic of Serbia and Agency for Protection of Competition of Montenegro signed today in Podgorica, Memorandum on Mutual Understanding and Cooperation in the field of Competition. This Memorandum, signed by Mr. Miloje Obradovic, President of the Commission and Mr.Miodrag Vujovic, Director of the Agency, represents a continuation of promotion of successful cooperation and development of bilateral relations by ensuring conditions for efficient functioning of market products and services.

Serbian and Montenegrin institutions for protection of competition will thus be even closer to European values in the field of competition law and policy, which constitutes an important segment of the negotiation process for accession to full membership in the European Union.

With this document, Commission for Protection of Competition of the Republic of Serbia completed formal cooperation with all countries in the region, which will significantly facilitate the future work and monitoring and sanctioning of irregularities in the market.


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