Publisher: Bojovic & Partners

Serbia: New penalty for a restrictive agreement

Serbia: New penalty for a restrictive agreement

On 28 January 2016, the Competition Commission enacted a decision by which it, after a pause of over one year (i.e. since 27 November 2014 when it imposed a fine on public utility company „Pogrebne usluge“ due to abuse of dominant position), determined the existence of breach of competition under Article 10 Paragraph 1 Point 1 of the Law on Protection of Competition since the parties in the proceedings, i.e. company Umbrella Corporation LTD d.o.o. from Belgrade, and two entrepreneurs (Pharmacy Zvončica Lek Beograd-Palilula and str Šahin, Beograd-Stari Grad), concluded a restrictive agreement which was not exempt from prohibition. 

The Commission imposed a measure for protection of competition in the form of obligation to pay a fine, after having conducted ex officio proceedings. 

Even though the amount of this fine is relatively low, this act by the Commission is certainly significant as it represents a clear indicator that the Commission is increasing the intensity of its work.