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Overall objective

The overall objective of the Project is to assist the beneficiary country in meeting the requirements of the Stabilization and Association process (SAp) in the field of competition.  The word “competition” is here not used in a large sense which would also embrace the control of state aid. Within the present project it means the adoption, implementation and enforcement of competition rules that are applicable to both private and public undertakings, including those with special or exclusive rights. However, the abovementioned fields of activity constitute the core of a sound competition law and policy, which is a prerequisite for an efficient market economy as the basic element of economic and social progress.

Project purposes

The purposes of the Project have been defined in the Terms of Reference (ToR) by the following words:

• To strengthen the institutional capacity of  the Commission for the Protection of Competition (CPC), so that it can carry out its activities independently from the other State authorities;

• To harmonize the legal framework  and its implementation with the EU Acquis in the competition field;

• To increase awareness on competition policy.

These purposes obviously have a different ambit. The measures to be taken under the first point focus on one administrative body, namely the CPC. The second point relates to legislation and thus concerns several State Institutions. Competition advocacy mentioned under the third point is addressed to the general public. All three purposes should, however be seen as parts of one final aim: the creation of a veritable competition culture in Serbia.

Planned results

The results to be reached by a successful implementation of the Project correspond to its purposes. They can therefore be defined as follows:

• A clear, non-discriminatory and user-friendly legal framework in line with the standards of EC competition law, which ensures the individual freedom of undertakings to compete with other undertakings, and at the same time forms the appropriate basis for interventions by the national competition authorities;
• Functionally independent Commission for the Protection of Competition which is vested with the necessary powers and provided with sufficient personal and financial resources to perform all of its activities as defined in the Law;
• A general awareness of State institutions, the business community and the general public of the virtues of a sound competition policy.

These results can only be achieved step by step in a long gradual process. The establishment and implementation of the Strategic Development Plan, which indicates in a logical order all of the various activities to be carried out  under the Project, as well as of the more concrete Action Plan are therefore essential for the success of the Project.

In this context it should be noticed that the EU expects from a Candidate Country that it meets the Copenhagen criteria (democratic political system, efficient market economy, and legislations harmonized with the EU Acquis), which further implies that the entire public administration and judiciary must respect the mentioned goals and standards. As free and effective competition constitutes a cornerstone of an efficient market economy, harmonizing other policies with competition policy is likewise required. To expect that competition-related activities are not impeded or undermined by measures taken in other areas of policy, is also a task to be carried out under the Project, even if the Terms of Reference do not mention it expressively.

Beneficiary and other project partners

Beneficiary: The Serbian Commission for the Protection of Competition (CPC)

The CPC was established by the current Law on the Protection of Competition (Official Gazette of the Republic of Serbia No. 79 / 2005) as an independent and autonomous organization entrusted with public powers within the scope of the Law. It has legal personality and is responsible only to the National Parliament. The CPC performs the typical activities of an administrative authority entrusted with the application of competition rules for undertakings. It enforces by injunctions and, where appropriate, by the imposition of fines the prohibitions of anticompetitive agreements, decisions or concerted practices (cartels) and of abuses of a dominant position, grants individual exemptions from the prohibition of cartels and controls concentrations between firms. For this purpose it carries out investigations, initiates proceedings and takes formal decisions which can be appealed to the Supreme Court.

The CPC is also entitled to propose to the Government the passing of regulations implementing the Law, e. g. by providing for group exemptions from the prohibition of cartels. It may monitor and analyze the conditions of competition on particular markets and in particular sectors, issue opinions on draft regulations proposed by other authorities and take actions in order to develop awareness of the importance of protection of competition. It cooperates with government bodies, institutions for regional autonomy and local self-governments as well as with other national and international competition authorities. On the level of bilateral cooperation, the CPC has entered into agreements with the competition offices of several neighboured countries.

The CPC is composed by two bodies. The Council is the decision-making body. It is composed of 5 Members. Only two of them are full-time employed. The Government proposes to extend this status to all Members. The Technical Service constitutes the supporting staff. It is headed by a Secretary and comprises 9 permanently employed persons whose principle function consists in the preparation of draft decisions. The present structure of the Technical Service includes 5 units: Cartels, Dominant Positions, Concentrations, Administration and International Cooperation. The Government has promised to create additional posts for case handlers.

Other Project Partners: Line Ministries, SEIO, Sector Regulators, Technical Regulators, Judiciary, Chambers of Industry and Commerce, Business and Professional Associations, Universities and Others 

Our main other partner is the Ministry of Trade and Services (MTS). To be added are several line ministries in charge respectively of financial services; energy; transport; electronic communications; health and health services; environment and public management. This list includes furthermore the Serbian European Integration Office (SEIO), in particular its Department for Legal Harmonization; the Sector Regulators for electronic communications, energy, railway and air transport; certain specific Technical Regulators such as the Central Bank, the Stock Market Agency, the Procurement Agency and the Insurance Agency; the Courts; the Chambers and Associations; Universities, leading firms and others still to be defined. Key Institutions in the legislative process are inter-Ministerial Committees, e. g. the Council for Regulatory Reform, the Secretariat for Legislation as well as the National Parliament of Serbia.

Mainstreaming of cross- cutting issues

There are no apparent cross-cutting issues such as gender equity, inclusion / participation of minorities, environment which could affect the implementation of the Project, as the latter deals with capacity-building for a State Institution (the CPC), the drafting of generally applicable legal provisions and competition advocacy for the general public. Gender equality will be taking into consideration when organizing the trainings and designing the organization of the Commission so that any discrimination is avoided.