The National Bank of Serbia adopted alterations and amendments to seven by-laws in the field of payment operations, thus resolving the dilemma regarding the liability of companies to use their corporate stamp when using payment services. The rule that companies are not obliged to use stamps in their business letters and other documents (unless otherwise prescribed by law), was explicitly set with the Companies Act, that became applicable in 2012. Even with the Payment Services Act, which applies since October of 2015 and which, in accordance with relevant EU directives provides that legal entities and entrepreneurs are not liable to […]
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The preeminent competition blog in Europe, Chillin’Competition put out a piece on the most recent developments in Serbia and the Balkans together with an exclusive publication of our constitutional challenge in English (available for download). This is one of the rare if not the only time for this region to come under the spotlight of this esteemed competition blog. Created in 2009, Chillin’Competition, under its mantra “Relaxing whilst doing Competition Law is not an Oxymoron” developed a cult following among competition practitioners, economists and aspiring law graduates across Europe and beyond thanks to its peculiar brand of legal humor, in-depth analysis […]
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Both Serbia and Montenegro have come under pressure from the European Commission to amend their respective Corporate Profit Tax Acts to bring tax incentives in line with EU law. This update provides a closer look and analysis, which suggests that amendments are an option worth considering for both Serbia and Montenegro. However, any such legislative change would need to be implemented in a manner that takes into account the interests of all stakeholders, including the interests of investors benefiting from the existing incentive schemes. The European Commission in Chapter 8 of its Screening Report for Serbia, emphasized that specific aid […]
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On September 11, 2017, the Bar Association of Serbia (AKS), the country’s national bar, submitted a constitutional challenge to the Constitutional Court against the Competition Act and all secondary legislation, as announced on its website. This landmark development was supported by a unanimous vote of the national Bar’s Board, including representatives of all regional and city bars. Together with the challenge, the Bar Association submitted a motion for stay of proceedings under way against the Association before the Serbian Competition Commission. With around 10,000 lawyers, the Serbian Bar Association is the largest assembly of legal professionals in the West Balkans. […]
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This update considers how exchange of information, as an essential part of any M&A transaction (from pre-acquisition discussions, through the due diligence procedure, and up to the closing of the transaction), may cause significant competition concerns under the Serbian Competition Act in terms of potential collusion between competitors. The prohibition on entering into restrictive agreements under the current Serbian Competition Act (CA) applies, as a general rule, to sharing of commercially sensitive information between undertakings. Relevant provisions of the CA prohibit contracts, certain contract provisions, express or tacit agreements, concerted practices, as well as decisions of undertakings associations which have […]
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Recent developments in Serbia, in particular an unprecedented number of hastily opened investigations and Competition Commission’s push for a complete revamp of the competition act, discussed in a recent PLC article “The Dawn of Dawn Raids or the Twilight of Due Process in Serbia?”, raised many eyebrows and prompted significant dissent from both public and private stakeholders. The widespread dissent took an interesting twist on August 21, 2017 when the Chamber of Commerce and Industry of Serbia (hereinafter: the Chamber of Commerce) issued an invitation for consultations to the members of its Assembly and Managing Board re the application and […]
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During the last ten days of May 2017, Serbian competition authority has hastily opened an unprecedented number of investigations. Simultaneously, the authority announced a push for a complete revamp of the competition act. Reviewing these developments through the lens of the New Administrative Act, which came into force on 1 June 2017, a strong argument can be made that behind these actions is a desire to circumvent the robust human rights safeguards introduced by the New Administrative Act and guaranteed under the ECHR and the Serbian Constitution. During the last ten days of May, the Commission for Protection of Competition of […]
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On 29 May 2017, the Serbian Competition Commission initiated ex officio proceedings for the alleged abuse of dominance against Frikom, the largest producer of frozen food in Serbia. The day following the initiation of proceedings, a dawn raid at Frikom’s business premises was carried out. Frikom’s abuse of dominance history This is not the first time the Serbian National Competition Authority (NCA) initiated a proceeding against Frikom. In 2012, the NCA found that Frikom abused its dominance in the wholesale market of industrial ice-cream by engaging in vertical price-fixing, imposing exclusivity on retailers (either through explicit exclusivity clauses or through […]
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One of the amendments to the Serbian Criminal Code (the Code) that will take effect on 1 March 2018 is a new criminal offence for restrictive agreements. Antitrust law has been criminalized in Serbia for decades. So what may be the underlying intention behind these new amendments? In one word: Focus. The Code does away with abuse of dominance and targets only restrictive agreements. But it does not stop there. The new provision is not only narrower than its predecessor but also than the general prohibition on restrictive agreements found in the Serbian Act on Protection of Competition (the Competition […]
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The Serbian 2009 Protection of Competition Act (as amended in 2013) (the Act) provides for rather low merger control thresholds, compared both to EU law and countries in the region. Thresholds set this low can (and usually do) result in excessive merger control which eventually brings more harm than good to market competition. In order to put an end to this, a change in decisional practice and/or legislative change in regards to this important aspect of merger control is required. The Act provides for rather low merger control thresholds, compared both to EU law and countries in the region. Namely, […]
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