Competition Commission prohibited in the repeated procedure the merger between Delta and C Market

The Competition Commission rejected, in the repeated procedure, the Merger Notification take over of C Market. Delta might be fined with the pecuniary fine up to 10% of the annual revenues realized in the year prior to merger, because of implementation of the merger without the Commission's clearance.

The repeated procedure took place after the Supreme Court of Serbia determined that there are some procedural omissions while enacting the previous Commission's decision. The Commission revised the omissions and in the new decision determined that the previous decision of 2006 was correct, since meanwhile Delta's retail chain increased its market share.

Just to remind, take-over of C Market was closed on 7 December 2005. The Merger Notification was primarily filed on 17 January 2006, i.e. one month later upon acquisition of control over C Market. The Commission decided on that Notification and in the inquiry proceedings determined that implementation of the merger might lead to creation of the dominant position in the market of retail of nutritional products and consumer goods in the market of the City of Belgrade.

In its new decision, which has been published, the Commission determined the relevant market by virtue of applying the principles of some decisions issued by the European Commission (Rewe/Meinl, Edeca/Spar), as well as by the decisions of the Croatian Competition Agency.

The Commission determined that the market share of Delta Maxi, C Market and Pekabeta (which belong to the same group) is significantly above 40%, which in the meaning of the Competition Law, prejudices the existence of the dominant position. Pursuant to the estimates of the market share, the Commission determined that, upon implementation of the merger, Delta Holding acquired extremely dominant, almost monopolistic position in the market, and hence the Commission rejected the Merger Notification.

Competition Commission determined that 14 taxi associations entered into cartel agreement

The Competition Commission announced on 25 December 2007 that 14 taxi associations at the end of November 2006 entered into a cartel agreement, through enactment of the Decision on Implementation of the Fixed Price for Taxi Services.

According to the Commission's announcement, the existence of such type of agreement between the competitors, i.e. cartel agreement, represents the considerable violation of the Competition Law with the direct detrimental consequences for the customers of the taxi services.

The Commission asked the parties in the cartel agreement to file the agreement, whereby they would be exempted from implementation of fines. The pecuniary fine for entering or execution of a forbidden agreement is 1 to 10% of the annual revenues realized by all parties to the forbidden agreement.


KN Competition, department within Karanovic & Nikolic Law Office specialized for competition law, organized on 24 September 2007 at Hyatt Regency Belgrade, an event - a panel discussion apropos publishing of an edition "Focus on Competition".

The discussion was attended by Mr. Bozidar Djelic, Vice-President of the Serbian Government, Mr. Predrag Bubalo, Minister for Trade, Ms. Dijana Markovic-Bajalovic, Chairperson of the Competition Commission, as well as many representatives of domestic and foreign investors. The event celebrated two years upon coming into effect of the Competition Law.

The attendees at the discussion confirmed the significance of development and improvement of competition in all areas of the Serbian market. The amendments to the Competition Law have been announced, which would reflect the positive experiences in implementation of the Law during previous two years.

Serbia initialed the Stabilization and Association Agreement with the EU

The representatives of Serbia and the EU initialed, on 7 November 2007, the Stabilization and Association Agreement. The Agreement has comprehensive importance for further development of competition issues in Serbia.

Inter alia, the Agreement provides for the direct implementation of the provisions of the Treaty of Rome, which are relevant for the protection of competition and state aid in the volume which may have influence on the trade between Serbia and the EU. Additionally, Serbia obliged by the Agreement that it shall further develop the competition regulatory framework in accordance with the inheritance of the EU, as well as to establish an independent authority which should deal with the state aid in accordance with the principles expressed in the Treaty of Rome.

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