CCA terminates proceedings against driving schools concerning alleged price-fixing

The Croatian Competition Agency (CCA) has adopted a decision terminating the administrative proceedings initiated ex officio on 11 January 2022 against the undertakings Kružni tok d.o.o., Auto škola Hajduk d.o.o., Obrt Auto škola Dalmacija and Obrt Croatia Start, concerning the alleged price-fixing cartel in the market for driver-training services for categories A and B, contrary to Article 8 of the Competition Act.

The proceedings were initiated following an initiative received in July 2021, based on which the CCA identified indications of possible price fixing arrangements among several driving schools operating in the Split area, as well as alleged pressure on non-participating driving schools. In the context of the preliminary market investigation, the CCA collected information from the Croatian Automobile Club and analysed driving schools’ official price lists, statements of the complainant and other available information.

The CCA carried out a comprehensive assessment of the relevant facts of the case which included unannounced inspections at the business premises of two undertakings, written submissions from the parties, examination of texting and other communications submitted with the initiative, and a detailed analysis of price developments of the undertakings concerned over the period from 2020–2023.

Following the individual and overall assessment of evidence, the CCA concluded that the findings gathered did not demonstrate the existence of concerted practices or a prohibited agreement on prices between the undertakings concerned. In particular, the analysis of price developments showed that prices were adjusted independently by individual driving schools, that certain cases price levels had been set prior to the alleged meeting at which the agreement was purportedly reached, and that the same undertakings did not apply uniform prices across all their branches. The evidence obtained, including information collected during the inspections and through the parties’ submissions, did not substantiate the existence of an agreement or concerted practice having as its object the fixing of prices.

In the absence of evidence establishing an infringement of Article 8 of the Competition Act, the CCA decided to terminate the proceedings.

However, the CCA recalls that agreements or concerted practices between undertakings on prices, sales conditions or other commercial terms of business are considered among the most serious infringements of competition law. Undertakings are therefore reminded, in the context of contacts, meetings or associations with competing undertakings, to refrain from any exchange of commercially sensitive information that may give rise to such conduct. The independent and transparent determination of prices and commercial policy is a cornerstone of effective competition and consumer welfare. The CCA will continue to monitor the market developments and ensure compliance with the Competition Act, with a view to preventing anti-competitive practices and ensuring a level playing field for all market participants.