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.
CCA accepts commitments offered by Croatia osiguranje
The Croatian Competition Agency (CCA) closed the infringement proceeding against the undertaking Croatia osiguranje d.d. that was opened ex-officio regarding the commercial lease agreement that Croatia osiguranje concluded as a lessee, containing a provision that imposed restrictions on the lessor in dealing with other undertakings, competing undertakings of Croatia osiguranje.
In the course of the proceeding Croatia osiguranje inspected all its business property commercial lease agreements and found that a similar restrictive provision was included in four commercial lease agreements where Croatia osiguranje is a lessee and in one commercial lease agreement where Croatia osiguranje is a lessor.
At the early stage of the proceeding Croatia osiguranje proposed the remedies on its own initiative and committed itself to the conclusion of a new standard commercial lease agreement with its business partners where Croatia osiguranje is a lessee. The new commercial lease agreement would not contain restrictive provisions that would impose any obligations on the lessor regarding the conclusion of a commercial lease agreement with any other insurance company.
At the early stage of the proceeding Croatia osiguranje also committed itself to send to its business partners new proposals for the agreements and provide a 60-day-deadline for them to decide whether to enter a new commercial lease agreement. Should the busines partners not accept the conclusion of a new commercial lease agreement, Croatia osiguranje would provide a waiver giving up any further business deals that would be attached to the proposal for the new commercial lease agreement respecting the subsidiarity principle.
In addition, immediately after the receipt of the CCA decision a revocation statement will be issued by Croatia osiguranje that would clearly and undoubtedly waive any possible right arising from the stated provisions contained in the concluded commercial lease agreements. Croatia osiguranje committed itself to inform the CCA about the implemented measures and their results within the following three months.
The committments proposed by Croatia osiguranje were published by the CCA on its web site inviting all interested parties to submit any written comments, observations and opinions within 20 days from the publishing date of the request for information. No replies have been received regarding the matter concerned.
The CCA accepted the commitments proposed by Croatia osiguranje. It found them sufficient to eliminate the possible competition concerns and to restore effective competition in the market.
The integral CCA decision in the Croatian language is available here:
https://www.aztn.hr/ea/ea/ea/ea/wp-content/uploads/2020/11/UPI-034-032020-01015.pdf