PRESS RELEASE –83rd SESSION OF THE COUNCIL OF COMPETITION OF BOSNIA AND HERZEGOVINA
83rd session of the Council of Competition of Bosnia and Herzegovina was held in Sarajevo on 6th March 2014 with the following adopted:
Decision approving individual exemption of the Agreement on technical cooperation ( franchising ), between undertakings ” Nestro Petrol ” a.d. Banja Luka , Kralja Alfonsa XIII No. 9 , 78000 Banja Luka as a franchiser , and undertaking ” COD TRADE” d.o.o. Banja Luka , Brokovići bb , 78000 Banja Luka , undertaking RIBAMERC d.o.o. for manufacturing and trading of Banja Luka , Krupa na Vrbasu bb , 78000 Banja Luka , undertaking a limited liability company for production, trade and services ” MD BUKVIĆ ” Brace Ćuskića 13 , 76100 Brcko district, undertaking ” RESTRUCT ” limited liability company for import and distribution of petroleum and petroleum products Sarajevo , undertaking limited liability Company for Trade and Services ” RUDING ” East Sarajevo , Miljevici bb , 71123 East New Sarajevo and undertaking business enterprise for internal and external trade and services ” Imzit – COMERC ” d.o.o. Sarajevo , Safeta Zajke 171 A , 71000 Sarajevo , as franchisees , in terms of Article 4 paragraph ( 1 ) and ( 3 ) and Article 5 of the Competition Act.
Council of Competition found that the mentioned Agreements have provisions of agreements concluded between undertakings operating at the same level of distribution ( horizontal agreement – concluded between undertakings operating in the retail market of petroleum products ) , as well as the provisions of the agreements concluded between undertakings operating at different levels distribution ( vertical agreements ) – undertakings “Rafinerija nafte” and “Rafinerija ulja Modriča” are suppliers of undertakings – the franchisees – partners in the mentioned agreement .
Council of Competition found that, although the subject contracts contain provisions prohibited agreements ( referred to in Article 4 ( 1 ) of the Competition Act ) , applicant has sufficiently proved arguments for and fulfillment of the Law on Competition prescribed conditions for individual exemption of the prohibition of restrictive contract , as the same shall contribute to improving the production or distribution of goods and / or services in Bosnia and Herzegovina , promoting technical or economic progress , while consumers will enable fair share of the resulting benefit , because the conclusion and implementation of the contracts impose only restrictions necessary to achieve the goals and do not exclude competition in the substantial part of the products and / or services within the meaning of Article 4 Paragraph ( 3 ) of the Competition Act .
Council of Competition found that, although the subject contracts contain provisions of prohibited agreements (referred to in Article 4 paragraph (1) of the Competition Act), applicant has supplied sufficient arguments to prove fulfillment of the conditions for individual exemption of the prohibition of restrictive agreement prescribed by Competition Act, as the same shall contribute to improving the production or distribution of goods and / or services in Bosnia and Herzegovina, promoting technical or economic progress, while consumers will gain fair share of the resulting benefit, because the conclusion and implementation of the contracts impose only restrictions necessary to achieve the goals and do not exclude competition in the substantial part of the products and / or services within the meaning of Article 4 paragraph (3) of the Competition Act.
During the decision making, Council of Competition has also took into account the analysis of the economic effects of the Agreement made by undertaking “Nestro Petrol” for the period of validity of the contract 2014 to 2018 (including – analysis of coefficient realization of market derivatives, the average sales per day, total retail sales of petroleum products, margins, involvement of partners in the margins, profits from the sale of petroleum products, the partners share in profits, saving on transportation costs, etc.), and which planned long-term positive effects for all parties, business partners of the Agreement, as well as for end-users (consumers).
Decision – It is believed that undertaking Preduzeće za poštanski saobraćaj Republike Srpske a.d. Banjaluka, Kralja Petra I Karađorđevića 85, 78000 Banja Luka (Postal Services Corporation of the Republic of Srpska Inc. Banja Luka), has not abused a dominant position within the meaning of Article 11 paragraph ( 2 ) of the Competition Act .
Council of Competition has received a request to initiate proceedings of undertakings Blicnet d.o.o. Banja Luka , Majke Jugovića 25 , 78000 Banja Luka , Telrad Net d.o.o. Bijeljina, Srpske vojske b.b., Bijeljina and Elta-Kabel d.o.o. Doboj, Ulica Svetog Save 26, 74000 Doboj, against undertaking Preduzeće za poštanski saobraćaj Republike Srpske a.d. Banja Luka , in order to establish the existence of abuse of dominant position .
Article 11 paragraph ( 2 ) of the Competition Act stipulates that if the Council of Competition does not issue a decision within the period referred to in Article 41 paragraph ( 1) item c ) of the Competition Act , it is considered that the agreement in question and conduct of the undertaking Preduzeće za poštanski saobraćaj Republike Srpske a.d. Banja Luka does not abuse dominant position .
Decision – It is established that undertakings ” Radio – Television of Bosnia and Herzegovina ” , Bulevar Mese Selimovica, 12 , 71000 Sarajevo , ” Radio – Television of the Republic of Srpska ” Trg Republike Srpske 9, 78000 Banja Luka and ” Radio – Television of the Federation of Bosnia and Herzegovina ” , Bulevar Mese Selimovica, 12 , 71000 Sarajevo , do not abuse dominant position within the meaning of Article 10 paragraph ( 2 ) items a ) , c) and d ) of the Competition Act .
Competition Council has received a request to initiate proceedings of undertaking OBN Humska No. 1 71000 Sarajevo , against undertakings Radio – Television of Bosnia and Herzegovina ” , ” Radio – Television of Republic of Srpska ” and ” Radio – Television of the Federation of Bosnia and Herzegovina ” , in order to determine existence of abuse of dominant position .
Article 11 Paragraph ( 2 ) of the Act stipulates that if the Council of Competition does not issue a decision within the period referred to Article 41 paragraph ( 1) item c ) of the Competition Act , it is considered that the agreement or conduct of undertakings Radio – Television of Bosnia and Herzegovina ” , ” Radio – Television of Republic of Srpska” and ” Radio – Television of the Federation of Bosnia and Herzegovina ” do not abuse dominant position .
Conclusion on initiation of the proceedings upon Request to institute proceedings of undertaking KONZUM d.o.o.. Sarajevo, Rajlovačka bb, 71000 Sarajevo, against the Government of West Herzegovina Canton – Ministry of Health, Labor and Welfare, Stjepana Radica bb, 88340 Grude, in order to establish the existence of a prohibited agreement related to the provisions of Clauses I and II of the Instruction on the Manner of sanitary inspection in the West Herzegovina Canton (“Official Gazette of West Herzegovina Canton” No. 11/2000).
Public Relations Department From the Office of President of Council of Competition
