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.
The Agency initiated a proceeding against Hrvatski Autoklub (HAK)
The Agency initiated a proceeding against Hrvatski Autoklub (HAK) in order to determine whether HAK distorted competition by concluding prohibited agreement with undertakings – its contractual partners.
There are indications that by the application of the Article 7 of the “Regulation on the provision of services of technical assistance to road drivers” from 25 May 2011, which needs to be respected by all HAK’s contractual partners or otherwise they would be penalised, HAK has distorted competition on the market of the provision of services of removal and transport of vehicles from the roads.
Although the status and the powers of HAK are regulated by the “Law on HAK”, which empowers and entrusts HAK to carry out certain public authorities, inter alia the provision of technical assistance to road drivers, the Law does not exclude a possibility for other existing or new undertakings to operate on that market. The mentioned Regulation adopted by the HAK’s Board on 25 May 2011 is an internal act defining the organisation of the technical assistance system as HAK’s public authority, manner of the operation of the service, conditions to be fulfilled by all stakeholders in the system, their rights and obligations, underlying work principles and the manner of charging for the services offered.
According to the provision of the Regulation which raises competition concerns, all contractual partners concluding an agreement with HAK on the implementation of certain tasks within technical assistance to road drivers are prohibited from cooperating with other domestic or foreign entities and may not, without prior HAK’s approval, conclude or have concluded agreements with other legal persons, whereby the list of such persons is determined by the HAK’s Board.
Therefore, the CCA’s proceeding will serve to determine whether HAK has distorted competition by concluding prohibited agreement and to identify the implications of such agreement on competition.