Konkurencijsko vijeće Bosne i Hercegovine

CONCLUSIONS OF THE 71st SESSION OF THE COUNCIL OF COMPETITION

SARAJEVO, 12 September 2008 - At its 71st session the Council of Competition adopted a Decision which states that the Agency for financial, informatics and intermediary services abused a dominant position in the market for financial, informatics and intermediary services in Federation of Bosnia and Herzegovina and therefore placed the undertaking LRC Inženjering in a unequal position in comparison with competitors. Namely, LRC Inženjering d.o.o. Sarajevo submitted to the Council of Competition a request for initiation of proceedings against AFIP for abuse of dominant position. LRC Inženjering stated in the request that AFIP in the Takeover and Assignment Agreement for the right to use data in a form of annual and half yearly account on business performance success of legal entities in Federation of Bosnia and Herzegovina, concluded with LRC Inženjering, determined different conditions for the same or similar practices in regard to other undertakings/users of the same services. The Council of Competition ordered the AFIP to enable LRC Inženjering to conclude a new agreement under the same conditions as those defined in the agreements made with other undertakings/users of the same services.

Concentration which will be created in the market for production and distribution of milk and diary products in Bosnia and Herzegovina through acquisition of majority ownership in undertaking Ideal Šipka d.o.o. export-import, Macedonia by undertaking Dukat d.d. Zagreb, Croatia, is declared compatible by the Council of Competition. The concentration in question is ex-territorial having influence on the market for production and distribution of milk and diary products in Bosnia and Herzegovina through Dukat mljekara d.o.o. Gradačac and Inmer d.o.o. Gradačac (subsidiary companies of Dukat d.d. Zagreb). Taking in consideration all data and information the Council of Competition has assessed that this concentration will not change market shares of the parties to the concentration as undertaking Ideal Šipka has not been present in the market for production and distribution of milk and diary products in Bosnia and Herzegovina.

Also, the concentration that will be created in the market for building materials for walls(bricks and block shaped ) in BIH through acquisition majority of ownership control over Xella International GmbH, Germany by XI Holdings II, Luxemburg is assessed compatible by the Council of Competition. The influence of the concentration in question on the BIH market is exerted through subsidiary companies that are the parties to the concentration : Bramac krovni sistemi (roof system)d.o.o. Sarajevo, Schiedel sistemi dimnjaka (chimney systems) d.o.o. Sarajevo, Tondach Bosnia and Herzegovina d.o.o., Sipgradnja d.o.o. Tuzla and Siporex d.d. Tuzla.In the decision making procedure the Council of Competition has assessed that implementation of the concentration shall not distort market competition, that is, the market positions in the relevant market will remain unchanged.

The concentration which will be created in the market for sale of confectionary products based on sugar and gum in Bosnia and Herzegovina between Mars Incorporated, USA and Wrigley Jr. Company, USA is assessed compatible by the Council of Competition. The parties to the concentration submitted to the Council of Competition a joined Notification of intended concentration by means of which Mars intended to achieve majority control over Wrigley. Mars and Wrigley are active in the relevant market for sale of confectionary products based on sugar and gum in BIH ,through its distributor Ataco d.o.o. Mostar. After the analysis the Council of Competition has assessed that this concentration will not lead to creation of a dominant position in the relevant market of confectionery products based on shugar and gum in BIH.

The Council of Competition adopted a Decision declaring the concentration which would be created in the dialysis services market in Bosnia and Herzegovina through acquisition of control over Euromedic International Holdings, Holland by ML Cayman Positions Ltd, Cayman islands and Omega Funds IV Limited, Chanel islands compatible .A joined Notification of intended concentration was submitted to the Council of Competition by ML Cayman Positions Ltd and Omega Funds IV Limited who intended to buy majority share in Euromedic International Holdings. The concentration in question is ex-territorial having influence on dialysis services market in BIH through Zdravstvena ustanova bolnica „Internacionalni dijaliza centar“(Health care institute hospital „International dialysis centre“) Banja Luka, a subsidiary of undertaking Euromedic International Holdings. After the analysis of positive and negative effects of the concentration, the Council of Competition assessed that this concentration would not change a market share of the parties to the concentration due to the fact that ML Cayman Positions Ltd and Omega Funds IV Limited were not active in the dialysis services market in BIH.

A concentration that will be created between Alpla Holding GmbH, Austria and Europet d.o.o. Čitluk, Bosnia and Herzegovina in the market for production of wrapping material made from plastic is assessed compatible by the Council of Competition. Alpla Holding has submitted to Council of Competition a Notification of intended concentration by which it intends to buy majority share in Europet. The Council of Competition has assessed that this concentration will not change the market structure as Alpla Holding has not been present in the market for production of wrapping material from plastic in BIH.

The Council of Competition adopted a Decision declaring the concentration, which would be created in the market for production, sales and providing services in the field of informatics (computer technisc) in Bosnia and Herzegovina between Asseco South Eastern Europe, Poland and Antegra d.o.o. Belgrade, Serbia, compatible. The influence of the concentration in question on the market of BIH is exerted by subsidiaries of the parties to the concentration: Pexim Solutions d.o.o. Banja Luka and Ibis a.d. Banja Luka. In the analysis of data during the decision making procedure, the Council of Competition assessed that the concentration in question would not distort market competition in the market for production, sales and providing services in the field of informatics (computer technisc) in Bosnia and Herzegovina.

Also, the concentration which will be created between Shiddi Trading Est, Saudi Arabia and „Bristol“ d.d mješovito hotelsko-turističko i trgovačko (mixed tourist and trade companz)preduzeće Sarajevo is assessed compatible by the Council of Competition. Shiddi Trading Est has submitted to the Council of Competition a Notification of intended concentration by means of which it intends to become a majority owner of „Bristol“ d.d mješovito hotelsko-turističko i trgovačko preduzeće . After the analysis and estimation of all data and information the Council of Competition has assessed that this concentration will not change existing market competition in the market for providing tourist services in Sarajevo Canton area due to the fact that reconstruction of the devastated hotel Bristol is planned immediately after the implementation of the concentration in question which will enable a strengthening market competition.

Council of Competition has adopted a Decision declaring a concentration which will be created in market for trade in food products, drinks and wide range of household products in Bosnia and Herzegovina compatible. The concentration will be created through acquisition of majority control over Tuš d.o.o. Sarajevo by Engrotuš d.d., Slovenia. It is assessed that this concentration will not create /strengthen a dominant position in the relevant market for trade in food products , drinks and wide range of household products in Bosnia and Herzegovina.

A concentration which will be created in the market for manufacture and sale of furniture made of solid wood in Bosnia and Herzegovina is declared compatible. The concentration will be created through acquisition of control over Standard d.o.o. Sarajevo by Delta Real Estate d.o.o. Belgrade. After the analysis the Council of Competition assessed that implementation of this concentration would not change a market structure as Delta Real Estate was not present in the market for manufacture and sale of furniture made of solid wood in Bosnia and Herzegovina.

Upon request of Novo Nordisk A/S, a Sarajevo agency the Council of Competition started a proceedings against Zavoda zdravstvenog osiguranja Kantona Sarajevo (Health Insurance Institute of Sarajevo Canton) in order to establish whether a prevention, restriction and distortion of market competition exists in the relevant market in BIH. The Council of Competition shall investigate whether Zavod zdravstvenog osiguranja Kantona Sarajevo (Health Insurance Institute of Sarajevo Canton) abuses the Act on competition.

The Council of Competition rejected a Notification of intended concentration of undertaking Deutsche Telekom AG, Germany due to the fact that Deutsche Telekom was not obliged to notify the concentration pursuant to the Act on competition. Namely, the parties to the concentration have no majority ownership or management right in undertakings registered in the territory of BIH , do not meet condition of total income acquired in the year preceding the implementation of the concentration and their joint market share does nor exceed 40%.

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