Competition & Antitrust, Schoenherr updates

Bosnia and Herzegovina

Contributed by Schoenherr
BiH Competition Council introduces new tariffs
  • Bosnia and Herzegovina
  • 22 November 2018

The Bosnia and Herzegovina Competition Council will apply new tariffs as from November 2018. Among these, the most significant are the increased merger control clearance fees, which have doubled. The council took inspiration for the new tariffs from those of other regional competition authorities, including the Serbian and Montenegrin commissions.

Competition Council – no concentration when company takes over competitor's premises
  • Bosnia and Herzegovina
  • 21 December 2017

The Competition Council recently took a stand regarding whether a situation in which a food retail company takes over a competitor's business premises and continues the same business activity in those premises constitutes a concentration. The council concluded that such situations should be notified as they are not considered concentrations according to the Competition Act.

Competition Council rules against taxi law
  • Bosnia and Herzegovina
  • 08 November 2012

The Competition Council has found that some provisions of the draft Law on Transport by Taxi breach the Competition Act. The council held that the provisions limited competition by imposing different conditions on identical transactions, thus putting some taxi drivers in a less favourable position.

Competition Council fines Ministry of Education, Science and Youth
  • Bosnia and Herzegovina
  • 31 May 2012

The Competition Council of Bosnia and Herzegovina found that agreements concluded between the Ministry of Education, Science and Youth of the Canton of Sarajevo and the municipalities of Vogosca, Ilijas, Ilidza, Novo Sarajevo, Stari Grad, Novi Grad, Trnovo and Hadzici, relating to subsidised student transport services, were in breach of competition rules. As a result, the council imposed a fine of €13,000 on the ministry.

Competition Authority enacts secondary legislation
  • Bosnia and Herzegovina
  • 14 October 2010

The Competition Authority has enacted secondary legislation based on the Competition Law. The Leniency Regulation explains the terms on which a party to a restrictive agreement may obtain a full exemption or reduced fine. The authority has also issued regulations on merger control, although its interpretation of the two merger thresholds - local and worldwide - arguably deviates from the rule set out in the law.


Bulgaria

Contributed by Schoenherr
CPC fines snack distributor for unfair solicitation of customers
  • Bulgaria
  • 17 October 2019

The Commission on the Protection of Competition (CPC) recently fined a snack distributor 4% of its annual turnover for the unfair solicitation of customers. The commission relied on its earlier practice to determine whether a promotional campaign launched by the distributor had infringed the Competition Protection Act. This decision is a helpful reminder that in order to avoid competition law violations, companies must carefully consider which prizes to offer in promotional campaigns.

CPC penalises Speedy AD for failing to provide complete and accurate information
  • Bulgaria
  • 25 October 2018

The Commission for the Protection of Competition (CPC) recently approved the acquisition of Rapido Express and Logistics OOD by its competitor Speedy AD. However, at the same time, the CPC penalised Speedy AD for failing to provide complete and accurate information in its concentration notification which the commission deemed materially and substantially important for evaluating the deal.

Private damages directive implemented in law
  • Bulgaria
  • 15 March 2018

The Act for Amendment and Supplementation of the Competition Protection Act was recently promulgated in the State Gazette. The new act follows the scope of the EU Damages Directive and applies to infringements of the Competition Protection Act regarding prohibited agreements and abuse of dominance.

Commission fines Laptop.BG for video blog content
  • Bulgaria
  • 11 January 2018

The Commission for the Protection of Competition recently fined Laptop.BG for unfair practices in the form of contradicting genuine practices. An investigation was opened at the request of Golden Green Stone Group EOOD, the owner of online shopping brand eVarna, which claimed that a blogger had performed prohibited comparative advertising in favour of Laptop.BG, thereby damaging eVarna's reputation and consciously redirecting consumers to Laptop BG's online platforms.

Competition Commission sends statements of objection for abuse of dominant position
  • Bulgaria
  • 02 November 2017

The Competition Commission recently sent statements of objection for abuse of dominant position by three electricity distribution and supply companies. According to the commission, allegations were made that the companies had traded information regarding customers switching from the regulated market to the liberal market in order to purposely stall the necessary paperwork.


Croatia

Contributed by Schoenherr
Agency rules on relevant market – how battle for market definition yielded results
  • Croatia
  • 21 July 2016

In July 2015 the Competition Agency received an initiative to initiate proceedings against Ytong porobeton (YP) for alleged abuse of its dominant position. YP rejected all of the assertions against it, arguing that the relevant market had been incorrectly determined. Based on expert opinions, the agency concluded that YP was not dominant on the relevant market and thus that it had not abused its dominant position.

Participation of associations in cartels: another twist in the saga
  • Croatia
  • 04 February 2016

In a recent case the Competition Agency for the first time accepted the proposed commitments in a case conducted under the qualification of a prohibited agreement, even though all the characteristics of a prohibited horizontal agreement limiting competition were present. By accepting the commitments, the agency abandoned its previous position in favour of a more lenient one.

Lessons learned from alleged cartel case against insurers
  • Croatia
  • 28 January 2016

In a recent ruling by the Croatian Competition Agency (CCA), a decision by the Croatian Insurance Bureau to revoke the power of an insurer to issue motor certificates was found not to constitute a prohibited agreement. Irrespective of this, the CCA noted that it is not the role of undertakings to control the operation of their competitors, and that the parties involved should have reported the insurer if they thought it had breached the law.

Marina cartel decision demonstrates increased detection of cartel activity
  • Croatia
  • 03 September 2015

The Competition Agency is improving its track record in competition law enforcement. One recent decision concerned a cartel of marina operators which exchanged information on future pricing policies for berthing services. Although the parties agreed not to raise the prices of their services (or to raise them minimally), the information exchange was deemed sufficient for the agency to render a statement of objections.

Competition Agency scrutinises 'non-poaching' agreements
  • Croatia
  • 23 April 2015

The Competition Agency recently considered whether Gemicro abused its dominant position on the market by allegedly tailoring and concluding 'non-poaching' agreements with the leasing companies which were its buyers, thereby restricting competition and creating significant barriers to entry into the relevant market. This is the first time that the agency has examined this type of agreement as problematic.


Czech Republic

Contributed by Schoenherr
New developments in competition authority's decision-making practice: whistleblowers and appointed guardians
  • Czech Republic
  • 15 August 2019

The Office for the Protection of Competition recently found two companies guilty of bid rigging in a public tender. While similar bid-rigging cases occur quite frequently and generally fall within the office's purview, this case is unique because, for the first time, the office was informed about the anti-competitive behaviour by a whistleblower and appointed a guardian for one of the parties involved.

Health products distributor fined for resale price maintenance
  • Czech Republic
  • 04 April 2019

The Office for the Protection of Economic Competition recently fined Czech health products supplier TCM Herbs Kc853,000 (approximately €33,500) for resale price maintenance (RPM). TCM Herbs has appealed the decision. The office has not issued an RPM decision in a long time. As such, the outcome of the review by its chair will be closely followed and hopefully indicative in terms of how (or if) the office will consider a more economic approach.

Competition office fines Booking.com €0.33 million
  • Czech Republic
  • 28 March 2019

The Office for the Protection of Economic Competition recently reviewed vertical aspects of online platforms and distribution channels, ultimately fining online booking platform Booking.com approximately €0.33 million for using most-favoured-nation (MFN) clauses in its contracts with hotels. Although the decision has not yet been published, it is hoped that it will be instructive in terms of how the office examines the conditions under which MFN clauses may be considered anti-competitive.

Office for the Protection of Competition gets tougher on fines for competition law infringements
  • Czech Republic
  • 18 October 2018

The Office for the Protection of Competition recently adopted new guidelines on the method of setting fines for competition law infringements. The new guidelines are intended to underline the repressive and preventive function of fines. As a result, undertakings can expect higher fines for infringements of competition rules than under the previous regime.

Competition Authority fines firm for restrictive clauses in lease agreements
  • Czech Republic
  • 28 June 2018

Restrictive clauses are common in commercial lease agreements. Such clauses can limit a landlord's ability to lease property to other tenants, restrict a tenant's business activities to a certain geographical area or control the subleasing of property. Restrictive clauses in lease agreements may appear to be problem-free and reflective of the contractual freedom of the parties, which forms one of the pillars of civil law. However, when certain restrictive clauses are scrutinised, a number of issues can become apparent.


Hungary

Contributed by Schoenherr
Compensating consumers may save reputation
  • Hungary
  • 19 September 2019

Misleading business-to-consumer information may lead to significant fines. Two recent Hungarian Competition Authority (HCA) decisions prove that the HCA has maintained its position as a watchdog of both consumer rights and fair competition. In both cases, the companies were investigated by the HCA because they had omitted to tell customers important information, thereby harming them.

By cash or card? HCA releases findings of sector inquiry into bank card acceptance market
  • Hungary
  • 15 August 2019

In 2017 the Hungarian Competition Authority (HCA) initiated a sector inquiry into the bank card acceptance market. Although the market was found to be competitive and functioning in accordance with the relevant regulations, the HCA has made a number of recommendations to both the legislature and market players in order to stimulate further growth.

Digital consumer protection in action – HCA launches market study into digital comparison tools
  • Hungary
  • 09 May 2019

The Hungarian Competition Authority (HCA) has launched a market study to explore the specific market developments relating to the application of digital comparison tools and their effects on consumers' decision making. The market study puts the HCA's mid-term digital consumer protection strategy paper into action and demonstrates the HCA's recent focus on consumer protection and efforts to serve as a lighthouse in the digital age.

Digital consumer protection – Black Friday success turns sour for major online marketplace
  • Hungary
  • 24 January 2019

After a record-breaking Black Friday promotion, an online retailer is now suffering the consequences. According to the Hungarian Competition Authority (HCA), eMAG may have failed to meet the standards of professional diligence by misleading consumers with its 2018 Black Friday campaign. This action was one of the first to be initiated under the umbrella of the HCA's digital consumer protection strategy paper.

HCA publishes digital consumer protection strategy
  • Hungary
  • 06 December 2018

The Hungarian Competition Authority (HCA) recently published a strategy paper presenting its views on consumer protection in the digital age. The paper subtly indicates that the HCA will continue to follow the European Commission's guidance in this regard. It also highlights the measures which the HCA deems necessary to protect consumers and keep up with the developments and companies central to this process.


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