PRESS RELEASE –92nd SESSION OF THE COUNCIL OF COMPETITION OF BOSNIA AND HERZEGOVINA

92nd session of the Council of Competition of Bosnia and Herzegovina was held in Sarajevo on 10th June 2014 with the following adopted:
Decision– concentration of undertaking Agrokor d.d.,Trg Dražena Petrovića 3, 10000 Zagreb, Republic of Croatia, and undertaking Poslovni sistem Mercator d.d., Dunajska cesta 107, 1000 Ljubljana Slovenia, is considered approved in terms of Article 18, paragraph (7) of the Competition Act.
Council of Competition has received, on 28th June 2013 Notification of concentration of undertaking Agrokor Zagreb, Republic of Croatia, whereby it intends to acquire control over the undertaking Poslovni sistem Mercator d.d. Ljubljana, through purchase of 53.12% of the shares.
Based on preliminary analysis of data from the documentation submitted with the Notification and supplements to the Notification, Council of Competition found that without the proceedings it is not possible to identify and analyze the effects of the concentration on the relevant markets in Bosnia and Herzegovina, and made a Conclusion to initiate the proceedings on 20th November 2013.
In the process, Council of Competition analyzed in detail the markets of wholesale and retail of food products and consumer goods in Bosnia and Herzegovina (including markets of entities / cantons, as well as some of the towns where the parties to the concentration have significant market shares).
Article 41, paragraph (1) item d) of the Competition Act provides that after the adoption of Conclusion on the initiation of proceedings to assess a concentration, Council of Competition must render a decision within three months. However, in cases where it is deemed that for the fact-finding and assessment of the evidence it is necessary to carry out additional expertise or analysis, or in the case of sensitive industries or markets, Council of Competition may extend the deadline for the final decision up to three months, in which case it must inform the party to the proceedings in writing. In this regard, the Council of Competition adopted Conclusion on the extension of the deadline by three months for a final decision on 18th February 2014.
Article 18, paragraph (2) of the Competition Act provides that the Council of Competition after the final procedure can – assess concentration approved, conditionally approved subject to the implementation of appropriate structural or other measures (eg. sale of retail space in some cities) or prohibit the concentration.
Council of Competition has informed the Applicant that the final decision in the proceedings has not been adopted, since it did not meet the statutory requirements for its adoption, and based on the provisions of the Competition Act is considered approved concentration.

At the special request of the Applicant, Council of Competition adopted a decision on the admissibility of concentration, in accordance with Article 19 of the Regulation on notification and assessment of concentrations of undertakings.
Decision declaring a concentration approved on the market of fixed telephony, internet service provision and distribution of radio and TV programs in Bosnia and Herzegovina, which will be created by acquisition of control of the undertaking Telekomunikacije Republike Srpske a.d. Banja Luka, Kralja Petra I Karađorđevića 93, 78000 Banja, over the undertaking Logosoft d.o.o. Sarajevo, Igmanska 9, 71000 Sarajevo, through purchase of majority shares in the share capital.
Analyzing the data Council of Competition, in terms of Article 17 of the Competition Act (especially the structure of the relevant market, the market shares of the parties to the concentration and competition, consumer welfare) found that undertaking Logosoft on all three relevant markets has negligible shares, and the implementation of the concentration will not lead to the increase of market share.
Opinion – The State Electricity Regulatory Commission, Miška Jovanovića 7, 75000 Tuzla (DERK), submitted Request for an opinion on the Draft decision on amendments to the tariff methodology for electricity transmission services, the Independent System Operator and Ancillary Services, on 22nd May 2014.
Council of Competition has assessed relevant methodology compliant with the provisions of the Competition Act.
Opinion – Energy Regulatory Commission in the Federation of Bosnia and Herzegovina, Blajburških žrtava 33, 88000 Mostar (FERK), submitted request for an opinion on the Draft rules for the supply of qualified buyers of electricity, received on 29th May 2014.
Draft Rules have been prepared on the basis of Article 1, paragraph (1), Article 13 and other provisions of the Electricity Act in Federation of Bosnia and Herzegovina (“Official Gazette of BiH”, No. 66/13).
Council of Competition has assessed the Draft Rules to be compatible with the provisions of the Competition Act.
The full text of the adopted final decisions can be found on the website www.bihkonk.gov.ba.
Public Relations Department from the Office of President of Council of Competition