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The Government of the Republic of Serbia

In the service of citizens

Protection of competition important element of competitive economy

Belgrade, 11 April 2012

Prime Minister Mirko Cvetkovic today stated that strong and independent institutions are a key step towards the introduction of a market system and a contemporary market economy, stressing the importance of antimonopoly politics in establishing an efficient and sustainable economy.

Vincent Degert, left, and Mirko Cvetkovic

Author: Tanjug

At a press conference concerning the observation of Competition Day, Cvetkovic said that protection of competition and antimonopoly politics are important elements of a competitive economy, whose effects citizens can feel through a larger offer of goods and prices, and the quality of goods and services.

The Commission for the Protection of Competition has affirmed its independence by making its own decisions to protect competition during 2011, the Prime Minister said, adding that the decisions by the Administrative Court confirmed the Commission’s decisions, thus increasing its importance and authority.

He recalled that during its mandate, the government has invested considerable efforts in creating a regulatory framework and adopted a new Law on the protection of competition, fully synchronised with EU law.

The Prime Minister reiterated that candidate status Serbia acquired is a confirmation of all reforms that have so far been implemented, noting that with this step it is clear that Serbia’s path lies in the EU.

Minister of Agriculture, Trade, Forestry and Water Management Dusan Petrovic said that the acquisition of candidate status is proof of the great changes Serbia has accomplished in its entire system, including the protection of competition.

Petrovic explained that competition is one of the fundamental issues when it comes to restructuring our society, bearing in mind that the EU is a free market and advancing towards the membership means achieving European standards in this area.

He observed that by limiting margins on essential foodstuffs small retailers were not forced to shut down their businesses, large supermarkets did not lose their sway and the prices of basic foodstuffs remained stable, which is beneficial for citizens.

Petrovic underlined that Serbia is implementing important measures to liberalise its foreign trade regime, noting that its trade with Bosnia-Herzegovina, Montenegro and Macedonia has been greatly facilitated, which shows that Serbia is not afraid of competition.

Head of the EU Delegation to Serbia Vincent Degert stressed that Serbia has taken important steps in terms of competition protection and adopted almost all the necessary regulations.

As for the policy of merging companies, Degert said that Serbia has a legal framework harmonised with EU regulations, but that certain opposing regulations are problematic, noting the example of the temporary measure to limit the margin.

He observed that the Commission for the Protection of Competition should not deal with pre-emptive measures only, but should also apply repressive measures.

Degert stated that efforts to further liberalise economy must be continued because certain companies have a dominant position in the transportation, energy and telecommunication sectors.

He underscored that rules and regulations that are to be adopted must be applicable and that there has to be coordination of national bodies in this area with EU bodies dealing with competition.

President of the Commission for the Protection of Competition Vesna Jankovic stated that last year the Commission declared fines for breaching the rules of competition amounting to RSD 3.2 billion.

Jankovic stressed that transparent, predictable and non-discriminatory law enforcement is the fundamental and the best way of promoting the protection of competition.

The essence of competition protection is the creation of conditions for a market game, which implies punishments in case it is breached, she explained.

Raising awareness and antimonopoly rules are one of the main pillars of a modern and contemporary economy, and citizens benefit the most from it, she added, noting that the protection of competition is one of the few areas in Serbia that have been fully harmonised with EU rules.