The Highest Antitrust Fine in Serbia

Belgrade, 23 December 2016

The Serbian Commission for Protection of Competition (SCPC) has fined EPS Distribution, an electric power distribution system operator, for the abuse of dominant position in the amount of 330 million RSD (approximately EUR 2.7 million). This is the highest antitrust fine imposed ever by SCPC.

Originally, SCPC established that EPS Distribution indeed held dominant position in the affected markets. Furthermore, SCPC identified several abuses of dominant position and in particular.

As a result of a non-transparent business behaviour, EPS Distribution’s supply was placed in an advantageous position compared to the competitors. Such behaviour resulted from EPS Distribution’s supply was not subject to a collateral for accessing the distribution system and from significant longer deadlines that were granted for settlement of obligations.

EPS Distribution imposed in the market different methods for calculating the amount of collateral to different private suppliers.

Moreover, depositing collaterals by different private suppliers, could only be done in the same commercial bank, selected by EPS Distribution.

The market abuses by the EPS Distribution resulted in higher costs to other commercial suppliers that were transferred to the end consumers.