Business lease conditions of Academy of Music are unfunded

In its opinion given to the City of Zagreb, the owner of the business space concerned, the Croatian Competition Agency (CCA) stated that the conditions imposed on potential bidders contained in the public tender for the lease of business premises and parking lots within the Academy of Music in Zagreb present unfunded burden for the undertakings. Concretely, the public tender concerned creates unfair burden which is excessive for undertakings, which would within the meaning of the listed conditions, for example, have to have at least a 20-year-experience in the pastry business, prices appropriate for the students’ standard and no less than two patented products.

The CCA gave its opinion exclusively from the point of view of competition rules without prejudice to the powers of the City of Zagreb as a local self-government unit that under separate rules creates the business lease conditions in its public tender in respect with its importance.

Therefore, the conditions that would impose on the bidders the above described obligations clearly are understood as excessive for a major part of the potentially interested undertakings.

In the opinion of the CCA the conditions under the public tender that represent excessive burden could be fulfilled by one or only few undertakings contradict the very purpose of a public bidding.

In that sense, the CCA holds the view that the existing conditions should be reviewed so as to ensure the high-quality service that impose no excessive burden on the undertakings concerned, such as good reputation, distinguishable products, professional service, tradition, diversity of products etc.

Finally, taking into account that here pastry and catering industry is involved, the CCA noted that it is in generally not usual or decisive that a pastry shop registers for patents or inventions in this industry, which is also financially demanding for the undertakings.