CONCLUSIONS OF THE 66th SESSION OF THE COUNCIL OF COMPETITION

SARAJEVO, 13 May 2008 - the Council of Competition on 66the session declared the competition between HVB Capital Partners, Germany and Comtrade Group B.V., Holland compatible. The concentration will be created in the market for wholesale and retail trade of computers and computer components in BIH through purchase 20% of shares with acquisition of control of HVB Capital Partners, Germany over Comtrade Group B.V., Holland on the basis of majority voting right exercised in strategic business decision. HVB Capital Partners is a part of UniCredit Group which performs its banking business activity in Bosnia and Herzegovina through its subsidiaries and Comtrade Group acts in the relevant market of BIH through subsidiaries: NT Computer Hardware Software d.o.o. Sarajevo, CT Retail d.o.o. Sarajevo and Comtrade Group - Predstavništvo u Sarajevu.Having analyzed all positive and negative effects of the concentration, the Council of Competition has assessed that implementation of the concentration in question will not lead to significant change of positions in the relevant market due to the fact that the parties to the concentration are not registered to perform the same or similar activities. 

The Council of Competition approved the concentration that will be created in the market for specialized software solutions between Hermes Softlab d.d. Ljubljana and ComTrade Group B.V. Amsterdam, Holland through acquisition 100% of ownership in Hermes Soft lab d.d. Ljubljana by ComTrade Group B.V. Amsterdam, Holland. This concentration appears to be ex-territorial concentration and it affects the market for providing specialized software solutions in BIH through subsidiaries, the parties to the concentration: NT Computer Hardware Software d.o.o. Sarajevo, CT Retail d.o.o. Sarajevo, Comtrade Group - Predstavništvo u Sarajevu (Agency in Sarajevo), Hermes SoftLab, Programska operma (Program equipment) d.o.o. Sarajevo and Hermes SoftLab, Programska oprema (Program equipment) d.o.o. Banja Luka. After analyzing the data and information in the decision making procedure, the Council of Competition assessed that implementation of the concentration would not distort market competition and that it would not create or strengthen the dominant position of the parties to the concentration in the market for providing specialized software solutions in BIH. 

The Council of Competition declared compatible the concentration created in the market for sale of computers and data processing equipment in BIH through purchase of majority shares in Društvu za trgovinu, konsalting i informacioni inžinjering Pexim (An engineering, consulting and trade company) d.o.o. from Belgrade by Asseco Adria S.A., Poland. The affects of the concentration in the BH market are produced through Pexim Solutions d.o.o. Banja Luka, a subsidiary of the company Pexim d.o.o. Belgrade. In the decision making procedure, the Council of Competition has established that this concentration will not change significantly the market shares of the parties to the concentration, and that implementation of this concentration will not distort existing market competition in the market for sale of computers and data processing equipment in BIH. 

The concentration created in the market for brick production used for building houses and other buildings in BIH through acquisition of majority control over Siporex d.d. Tuzla by Xella Baustoffe Alpe-Adria Holding GmbH, Austria is declared compatible. Detailed legal and economic analysis of relevant data and information shows that implementation of this concentration will not change market shares of the parties to the concentration due to the fact that Xella Baustoffe has not been present in the relevant market in BIH. 

The Council of Competition has initiated a proceeding against Assembly of Sarajevo Canton to examine whether the market competition is restricted, prevented or distorted in the relevant market in BIH. The Request for initiation of the proceedings was submitted by the Association of International Pharmaceuticals manufacturers in BIH. The Association thinks that Decision on the Listing of prescribed Pharmaceuticals which are burden on funds of the health Insurance Institute of Sarajevo Canton is not harmonized with the Act on Competition as it puts domestic pharmaceutical manufacturers in advantage position compared to foreign pharmaceutical manufacturers. In the proceedings, the Council of Competition shall determine whether the Act on Competition has been violated. 

 Upon request of the LRC Inženjering d.o.o. Sarajevo, the Council of Competition has started a proceedings against Agencije za finansijske, informatičke i posredničke usluge (Agency for financial, informatics and brokerage services d.d. Sarajevo (AFIP) to examine whether the dominant position has been abused. LRC Inženjering submitted to the Council of Competition a request for starting a proceedings to examine whether the AFIP abused a dominant position by offering different conditions for the same or similar jobs to other parties , putting them in disadvantageous position. LRC Inženjering stated that AFIP refused to supply the accounting data report concession in its possession (but it supplied some banks ,microcredit organizations ,etc) .The Council of Competition shall examine whether the abuse takes place in the course of such performance of the AFIP (whether the Act of Competition is abused). 

The Council of Competition declared the concentration, created in the service market for door-to-door parcel delivery in BIH between 24-VIP Express Logistics Services d.o.o. Sarajevo and Post International Beteiligungs GmbH, Austria, compatible. Post International Beteiligungs GmbH, Austria submitted to the council of Competition a Notification of intended concentration declaring an intention to become 100% owner of 24-VIP Express Logistics Services d.o.o. Sarajevo. The Council of Competition has assessed that this concentration will not cause negative effects on the market for door-to-door parcel delivery in BIH owing to the fact that joint market share of the parties to the concentration is considerably bellow 40% -a defined parameter for dominant position of undertakings in the market. 

The Council of Competition rejected a Notification of intended concentration between Porr Solutions Immobilien-und-Infrastrukturprojekte GmbH, Austria and Mostar-film d.o.o. Mostar, as the concentration is not subject to notification obligation, pursuant to Act on Competition.

Upon request of the Assembly of Sarajevo Canton, the Council of Competition has expressed an opinion that Draft Decision on adoption of Network of pharmacies in Sarajevo Canton, the criteria, way and terms of negotiation with pharmacies is to be harmonized with the Act on Competition and such harmonized Draft Decision is to be submitted to the Council of Competition.

The Council of Competition has expressed an opinion upon the request of the Federal Ministry of Trade which makes changes and amendments to the Federal Law on Trade that protection of the market competition is regulated by the Act on Competition and that it would not need to be regulated by the Federal Law on Trade.

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