Konkurencijsko vijeće Bosne i Hercegovine

CONCLUSIONS OF THE 74TH SESSION OF THE COUNCIL OF COMPETITION

SARAJEVO, 22October 2008- At 74th session the Council of Competition adopted a Decision, passed upon request of Association of representatives of international pharmaceutical manufacturers against the Government of Sarajevo Canton, Bosnia and Herzegovina, which states that the Government of Sarajevo Canton , by means of its Decision on List of medicines covered by the Health Insurance Fund of Sarajevo Canton , prevents, restricts and distorts market competition in the market for prescription pharmaceuticals that are put in the List of medicines for insured persons covered by the Health Insurance Fund of Sarajevo Canton.
Association of representatives of international pharmaceutical manufacturers in BIH states in its request that above mentioned Decision provides that a foreign manufacturer’s medicine with protected mark is removed from the List of medicines that citizens can get the burden of Health Insurance Fund in a case when domestic manufacturer put on the market a medicine that is identical in composition, strength and packaging

Competition Council believes that the above mentioned Decision, from the aspect of regulations on protection of market competition, placed domestic manufacturers in favorable position in the market in Sarajevo Canton in relation to the foreign manufacturers, which is contrary to the law on competition.
In this regard, the Government of the Canton of Sarajevo is ordered to amend, within 3 months, a Decision on List of medicines covered by Health Insurance Fund of Sarajevo Canton in the area of Canton Sarajevo, in a way to ensure the equal conditions for foreign manufacturers as for local manufacturers, when chooses a manufacturer of medicines for the List.
Competition Council adopted a Decision declaring that exclusive distribution agreement in the market for distribution of cosmetics in the area of Bosnia and Herzegovina, concluded between Erkul Kosmetik from Istanbul and the Golden Rose d.o.o. from the Brcko District, was in accordance with the Act on competition.

Namely, the undertaking Galant d.o.o. Kiseljak submitted to the Council of Competition a request for initiation of the proceedings against Erkul Kosmetik from Istanbul and the Golden Rose from the Brcko District to determine the existence of violations of provisions of the Act on competition. Galant d.o.o. Kiseljak, stated in the request that distribution of the range products of Erkul Kosmetik had been possible through many different importers and distributors until 2006, but since 2006 the distribution of the above-mentioned products was possible only through Golden Rose, which was appointed by Erkul Kosmetik as the only distributor of its products in Bosnia and Herzegovina.

Also, the Galant d.o.o. Kiseljak requested the Council of Competition to determine the temporary measures ordering the Erkul Kosmetik to enable the Galant d.o.o. Kiseljak the direct import of its products, which was rejected by the Competition Council as groundless.

Estimating and analyzing all data and facts established in the Decision making procedure, the Competition Council has assessed that this agreement does not violate the provisions of the Act on competition.
Because of the contempt of the deadlines for submission of documentation and the submission of incorrect and wrong data, the Council of Competition imposed a fine to Mr. Dino Bajraktar Ismail from Istanbul, the responsible person in "Golden Rose", in the amount of 5,000.00 KM.

Competition Council assessed the concentrations, which could affect the production of electrical energy market in BIH through acquisition of control over the Tomis Team s.r.l., Romania, and Ovidiu Development s.r.l., Romania by undertaking ČEZ a.s. Prague, Czech Republic, compatible.
The concentration concerned is exterritorial concentration that has an impact on the production of electrical energy market in BIH through the subsidiaries of ČEZ a.s.Prague (NERS d.o.o. Gacko and ČEZ Bosnia and Herzegovina d.o.o. Sarajevo).
Establishing and analyzing all data and facts established in the Decision making procedure, the Competition Council has assessed that this concentration will not change the market shares of the parties to the concentration due to fact that Tomis Team and Ovidiu Development are not present in the market for production of electrical energy in Bosnia and Herzegovina.

Competition Council has adopted a decision on the approval of concentration that will arise on the beer market in BIH through joining of Anheuser-Busch Companies Inc., from America to Inbev, from Belgium.
The Competition Council has assessed that the influence of the concentration on the market in Bosnia and Herzegovina through the Zagreb Brewery d.o.o. Posusje, connected company of Inbev, and implementation of the concentration will not change the market position in the beer relevant market in BIH due to the fact that Anheuser is not present on the same.
Because of the contempt for submission of the Notification on intended concentration within the legally stipulated time, the Competition Council imposed a fine to Inbev in the amount of 100000.00 KM.

Competition Council adopted a Decision declaring the concentration, which will be created on market of wholesale of wide consumption of goods and publishing, newspaper and printing operations in Bosnia and Herzegovina through acquisition of control over the Darta Trgovina d.o.o. Banja Luka by the DELTA DMD do.o. Belgrade, compatible.

Namely, the Competition Council received a Notification of intended concentration submitted by Delta DMD, where stated its intention to become the majority owner of Darta Trgovina d.o.o.
After the analysis of positive and negative effects of concentration, Competition Council has assessed that the implementation of the concentration will not distort the existing market competition because it will not cause significant changes in the market position on the wholesale relevant market of wide consumption of goods and publishing, newspaper and printing operations in Bosnia and Herzegovina .
Because of the contempt of submission of incorrect and wrong data, the Council of Competition imposed a fine to Company Delta DMD in the amount of KM 20000.00.

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