Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
Čakovec Town Planning outside the scope of competition rules
Essentially, the author of the query complained about the revision of the General Permitted Development where the urban planning of the Town of Čakovec envisages the conversion of a public space into land used for commercial purposes. This land would be purchased by McDonald’s who would use it to build a restaurant. The complainant challenges the possible sale of land owned by the local authority to an upfront buyer.
The Croatian Competition Agency (CCA) consulted the local authority of the Town of Čakovec and the relevant legal provisions regulating the matter concerned and found that in this concrete case it falls outside the scope of competition rules whereas rules on local and regional self-government units, sale of land owned by local and self-government units and, likely, State aid rules, apply.
For instance, the above-mentioned provisions stipulate that the major or the local government decide on the sale of land whereas the land and buildings may be sold in a competitive bidding procedure under a competitive price, unless otherwise regulated by law. Any legal arrangements made in contravention with these rules are null and void.
At the same time, the Act on Local and Regional Self-government stipulates that the legality of the work of the local government is scrutinized by the central state administration body responsible for local and regional self-government whereas the administrative decisions adopted by the representative bodies of municipalities, towns and counties are under the scrutiny of the state administration offices (counties) and empowered central state administration bodies, within their jurisdictions and under separate laws.
In conclusion, the CCA pointed out that it is not responsible for establishing the fact whether in this particular case financial aid has been granted from the local budget or not, or whether the land or property has been sold below the market price without a competitive bidding, given the fact that this matter is regulated by the State aid rules that fall under the jurisdiction of the Ministry of Finance and the European Commission.