1

Competition Law under ConstructionCase of: Serbia and Montenegro

Competition Law under ConstructionCase of: Serbia and Montenegro

Miloš Andrović

Public Policy Manager & Compliance Officer

Disclaimer: Statements and positions advocated and presented represent the sole position and responsibility of the speaker

2

Protection of Competition – Understanding the Environment?

Protection of Competition – Understanding the Environment?

• Protection of Competitors• Protection of Consumers• Combating organized crime and local tycoons • Tool for driving Government agenda• Source of influencing economic settings • Restriction of competition by Government and state

authorities– negative effects on competition and abusing of trade protection

instruments

3

Stakeholders Involved – Impeding Development of Effective Competition

Stakeholders Involved – Impeding Development of Effective Competition

• Market monopolization and cartelization widespread• Powerless and young authorities

– Collective decision-making body vs. individual autonomous authority;

– Lack of professionalization by the officials;– Lack of people development, training and management;– No clear enforcement agenda;– Financial dependency and fear of bankruptcy;– Personal dependency and fear of recall;– Lack of transparent, consistent and coherent decision making;– Refusal to act – business preclusion

4

Stakeholders Involved – Impeding Development of Effective Competition Cont’d

Stakeholders Involved – Impeding Development of Effective Competition Cont’d

• No institutionalized cooperation between various authorities dealing with:– Antitrust, Corruption, Public Procurement, sector specific regulators and

Prosecution

• Prevention of competition often part of prior/parallel criminal act (bribery, abuse of power, conflict of interest)

• Current environment on prosecution and penalties – Corruption/Bribery cases – focus on individuals and not undertakings –

major loss to society

– Competition law cases – focus on undertakings and not individuals – no deterrence effect on individuals and no enforced fines on undertakings

5

Enforcement Problems Enforcement Problems

• No direct and on the spot collection of evidence;• Decisions mainly based on indirect evidence;• Lack of trust by potential leniency applicants;• Unfair trade practice vs. abuse of dominance;• Mergers still in focus (assessment regardless of thresholds on

financial markets);• Lack of legal certainty and predictability;• No enforced fines (retroactive application);• Passive enforcement of the Law;• Lack of compliance culture;• Insufficient international cooperation;• Lagging in implementation of soft-law harmonization instruments;

6

milos.androvic@merck.com milos.androvic@merck.com