PRESS RELEASE – 76th SESSION OF THE COUNCIL OF COMPETITION OF BOSNIA AND HERZEGOVINA
76th session of the Council of Competition of Bosnia and Herzegovina was held in Sarajevo on 16th December 2013 with the following adopted:
Decision, establishing that Agencija za finansijske, informatičke i posredničke usluge d.d. Sarajevo (Agency for financial, IT and Intermediary Services d.d. Sarajevo) through the provisions of the Rules on the transfer of data to companies and individuals, and methods of their use, and by not concluding Agreement on business cooperation with undertaking “LRC Inženjering” d.o.o. Sarajevo, abused its dominant position on the market for the provision of financial, IT and intermediary services in the Federation of Bosnia and Herzegovina, applying dissimilar conditions to equivalent or similar transactions, under Article 10, paragraph (2), item (c) of the Competition Act, and concluding the agreement which dictates other party to accept additional obligations which, by their nature or according to commercial usage, have not to do with the subject of such agreements, from Article 10 paragraph (2), item (d) of the Competition Act.
By the Decision of the Government of Federation of Bosnia and Herzegovina on the manner of submission and processing of accounting reports on operations of legal persons in the Federation of Bosnia and Herzegovina, undertaking Agency for financial, IT and Intermediary Services d.d. Sarajevo (AFIP) is authorized together with Agencija za pružanje informatičkih i posredničkih usluga d.d. Mostar (FIP) (Agency for the provision of information and intermediary services d.d. Mostar) to receive accounting statements on operations of legal persons in Federation of Bosnia and Herzegovina, for their processing and analysis. Following this Decision, it has been indisputably established that the undertaking AFIP has dominant position in the relevant market, which means that there is no possibility for an undertaking, the beneficiary of the services, to conclude an agreement on business cooperation with another agency / institution regarding the relevant services, and consequently it has a responsibility to provide identical conditions in the relevant market to all commercial entities.
The mentioned Decision has ordered the Agency for the financial, IT and Intermediary Services d.d. Sarajevo to harmonize the provisions of the “Rules on the transfer of data to companies and individuals, and methods of their use”, made and approved by the Supervisory Board, in the prescribed timeframe.
It also ordered the Agency for the financial, IT and Intermediary Services d.d. Sarajevo to conclude agreement on business cooperation with undertaking “LRC Inženjering” d.o.o. Sarajevo, as the Applicant of the Request to institute proceedings, under equal conditions for all economic entities, within the deadline, and submit evidence of execution thereof.
In addition, the Decision has fined Agency for financial, IT and Intermediary Services d.d. Sarajevo in the amount of 19.000,00 KM, within the meaning of Article 48 paragraph (1) item b) of the Competition Act.
Decision, establishing that the undertaking Iko Balkan S.R.L G-RAL David Praporgescu, through undertaking Sport klub d.o.o. Sarajevo Hajrudina Šabanija br. 49, 71000 Sarajevo
(his agent / representative) has abused its dominant position in the market selling the rights for distribution of channels that include football contents of high quality, which includes the transmission of packets of Live English Premier League in Bosnia and Herzegovina, so that the item C.10. of the valid agreement on distribution of TV channels has imposed conditions on the minimum number of subscribers, which represents a direct or indirect imposition of other commercial conditions which restrict competition within the meaning of Article 10 paragraph (2) item a), or applied different conditions in agreements for retransmission of sports channel Sport Klub with CATV / IPTV / DTH operators in Bosnia and Herzegovina, which have led them in an unequal position and competitive disadvantage, in terms of Article 10 paragraph (2) item c) of the Competition Act.
Council of Competition has assessed that when it comes to football contents of high quality that it is a very differentiated product, which does not have or does not have an adequate replacement, i.e., e.g. the end user who follows German Bundesliga matches will not consider matches of English Premier League an adequate replacement, and vice versa. Thus, for end users / viewers in Europe, bearing in mind in particular their essential characteristics and quality, any exclusive football league (English, German, Italian, Spanish, French) or other exclusive fatball competitions (UEFA Champions League, UEFA Europe League) represents particular relevant market.
Considering the foregoing, Council of Competition has determined that the relevant market of products and / or services in this particular case is market of rights to distribute the channel containing the High quality football contents, which include the transfer of packets of Live English Premier League.
Council of Competition established that the undertaking IKO Balkans in Bosnia and Herzegovina, by concluding agreements on distribution of TV channel Sports Klub, individually or through authorized representative undertaking Sports Klub d.o.o. Sarajevo, as well as by not concluding distribution agreements of TV channel Sport Klub, had abused its dominant position in the relevant market.
The Decision has prohibited undertaking IKO Balkan any further action that represents established abuse of dominant position and ordered to comply provisions of the valid Agreements on the distribution of TV channel Sports Klub, concluded with cable operators in BiH, with Competition Act, within the prescribed time limit .
The said decision has fined undertaking IKO Balkans for infrigement of the Competition Act in the amount of 125.000,00 KM, within the meaning of Article 48 paragraph (1) item b) of the Competition Act.
Conclusion, initiating ex officio proceedings for the assessment of the concentration of undertaking Telemach Društvo za pružanje usluga u oblasti telekomunikacija d.o.o. (Company providing services in the field of telecommunications) Sarajevo, Džemala Bijedića 216, 71000 Sarajevo and undertaking “ART NET” , d.o.o. Kiseljak, Administrativni poslovni centar bb, 71250 Kiseljak.
During the proceedings, Council of Competition shall assess the effects of the concentration on the basis of the criteria laid down in the Competition Act and analyze the impact of the mentioned concentration on the structure of the relevant market, and whether the concentration would create or strengthen a dominant position in the relevant market, which could result in a significant distortion of effective competition, or whether it will produce positive effects that are reflected in the strengthening of existing competition in the relevant market.
Conclusion, initiating proceedings upon Request for initiation of proceedings filed by undertaking „Centrotrans-Eurolines“ d.d. Sarajevo against municipality Vogošća and undertaking „Vildan tours“ d.o.o. Sarajevo, for establishment of existence of prohibited competition conduct, in terms of limitation of competition on the market of transport of students in the area of municipality Vogošća.
Public Relations Department
From the Office of President of Council of Competition