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 seeks the State Attorney’s Office of the Republic of Croatia to review the legality of the ruling of the High Administrative Court in the Orthodontists cartel case
The Competition Council decided today to seek the State Attorney’s Office of the Republic of Croatia to re-examine the legality of the ruling of the High Administrative Court of the Republic of Croatia in the case CCA v Croatian Orthodontic Society.
Namely, the High Administrative Court of the Republic of Croatia confirmed the claim of the Croatian Orthodontic Society (COS) and overturned the decision of the CCA on the basis of which it had been established that the COS by the adoption of the „Minimum prices for orthodontists services“ concluded a prohibited agreement.
It is the position of the CCA that the High Administrative Court of the Republic of Croatia in the recital of its ruling challenges the very concept of a restrictive – prohibited agreement stipulated under the Competition Act and the EU acquis in the area of competition. In other words, if this ruling remains in force, it would constitute a precedent that would jeopardize the interest of consumers, undertakings and competition in general.
Given that there is no ordinary legal remedy against the ruling of the High Administrative Court of the Republic of Croatia it is the first time in the 18-year-operation of the CCA that it has resorted to an extraordinary legal remedy.
The Croatian Competition Act, in line with the EU acquis in the area of competition, clearly defines that the decisions made by associations of undertakings fixing minimum or uniform prices shall constitute prohibited agreements, regardless of the fact whether these associations of undertakings are empowered by a separate act to make such decisions or not. The participants to such agreements, particularly the associations of undertakings, are subject to sanctions in the form of fines solely on the basis of the fact that there is evidence on the existence of an agreement and regardless of the fact whether the agreement has been implemented in practice or not.
The ruling of the High Administrative Court of the Republic of Croatia denies these two key elements and thus makes room for price agreements in professional and other interest associations of undertakings.
The CCA will remain consistent in the application of the provisions of the Competition Act in line with the criteria deriving from the EU acquis in the area of competition to prohibited agreements.