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 initiates proceedings and conducts surprise inspection in the low-voltage and medium-voltage networks market
The Croatian Competition Agency (CCA) has initiated proceedings against the following undertakings:
- KOPRODUKT TRGOVINA d.o.o., based in Zagreb,
- ELEKTRO MERKUR d.o.o., based in Rijeka,
- ŠARE d.o.o., based in Zemunik Donji,
- ELCON d.o.o., based in Varaždin,
- BRODOMERKUR ENERGETIKA d.o.o., based in Split,
- COTRA d.o.o., based in Varaždin,
- BRODOMETALURGIJA d.o.o., based in Split.
The purpose of the investigation is to determine whether these undertakings have engaged in anti-competitive practices by entering into a prohibited agreement within the meaning of Article 8 of the Competition Act. The alleged infringement involves geographical market division in the Republic of Croatia by submitting bids only for specific distribution areas or specific groups of distribution areas in public procurement and minor value procurement procedures conducted by the contractor HEP-Operator distribucijskog sustava d.o.o., (HEP – Distribution System Operator) based in Zagreb. The procurement in question pertains to cable and connecting accessories, suspension and connecting accessories for low-voltage networks, and suspension and connecting accessories for medium-voltage networks.
The investigation was initiated following a complaint from Marel d.o.o., a company based in Kruševac, Serbia, which manufactures cable and connecting accessories, as well as suspension and connecting accessories for low- and medium-voltage networks. Marel d.o.o. offers these products in the Croatian market through distributors.
Based on this complaint, the CCA conducted a preliminary market investigation under Article 32 of the Competition Act that indicated sufficient grounds to initiate formal proceedings.
To establish the facts and gather evidence supporting the alleged anti-competitive practices, the CCA conducted a surprise inspection of the business premises of KOPRODUKT TRGOVINA d.o.o., COTRA d.o.o., and BRODOMETALURGIJA d.o.o. This inspection was carried out under a warrant issued by the High Administrative Court of the Republic of Croatia and within the CCA’s legal powers under the Competition Act.
The CCA will decide whether the undertakings concerned infringed competition rules based on the final findings of the investigation. The CCA notes that the initiation of proceedings and the surprise inspection do not prejudice the final decision in this case.