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.

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Tisak reviews the commission rates in newspapers sales

The Croatian Competition Agency (CCA) accepted the committments of the undertaking Tisak with the view to eliminating possible anticompetitive effects in the commission sales of newspapers in the proceedings that has been carried out by the CCA against the undertaking concerned.

The CCA initiated an ex officio proceeding against the undertaking Tisak based on the initiative made by the association of undertakings Ultra gros and Narodni trgovački lanac (NTL). These are associations of undertaking founded with the objective of obtaining of more favourable conditions for their members in the supply of particular joint purchased products.

The complainants stated in the initiative that Tisak refused to give rebates to the associations concerned although the same rebates have been given to other buyers in the newspapers commission sales, which in their view challenges the very reason for establishment of such associations.

In the course of the proceeding Tisak proposed the committments to remedy the possible anticompetitive effects. Concretely, Tisak proposed to the CCA to review its terms of business in the commission newspapers sales that has been applied since 1 January 2014 in the way as to implement the provisions that would clearly identify and acknowledge associations of undertakings as buyers in the distribution of newspapers and commission sales of newspapers. In accordance with this proposal the associations of undertakings would be awarded an extra group rebate that would bring benefits for each individual member of the group (association of undertakings).

The CCA accepted the committments made by Tisak assessing the measure proportional to the possible negative effects of the existing terms if they were not changed.

In the monitoring procedure Tisak will in the following two years submit to the CCA semi-annual reports on the effects produced by the measures concerned demonstrated by the evidence that the associations of undertakings have been granted a status of a buyer and that the additional group rebates have been awarded. The revised terms of business must be published by Tisak on its web site throughout the monitoring period.

However, even before the CCA approved the remedies concerned, Tisak already published the new General terms for commission rates in newspapers sales. These General terms entered into force on 1 January 2016 and they already contain the above measures approved by the CCA and new provisions regulating the newspapers distribution conditions for particular points of sale.

Given that in the proceeding in question the CCA was limited only on the subject involving the definition of an association of undertakings and its right to enjoy extra rebates for the group, the CCA could not provide for any prior (ex ante) assessment concerning other provisions contained in the General terms concerned. Thus, the CCA will open a new proceeding and carry out a preliminary market investigation in the market concerned and assess the possible effects of the General terms that define the distribution and financial conditions for distribution of newspapers to particular points of sale.