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.
Upon the request of the notifying party the CCA allowed the implementation of certain steps in the implementation of the concentration in line with the Croatian Competition Act
On 1 March 2022 the Croatian Competition Agency (CCA) received a pre-notification of the concentration between the undertakings Hrvatska poštanska banka d.d. (HPB) and Sberbank Hrvatska, under extraordinary procedure of the Single Resolution Board of the Banking Union, relating to the sanctions imposed by the EU due to the Russian invasion on Ukraine.
The pre-notification seeks the adoption of the decision of the CCA within the meaning of Article 19 paragraph 6 of the Croatian Competition Act stipulating that CCA may, in particularly justified cases, act upon the request of a party to the concentration and allow the implementation of particular actions relating to the implementation of the notified concentration even before the expiry of the time period or before the receipt of the decision. In deciding whether the request is justified, the CCA took into account all circumstances of the relevant case, particularly the nature and the gravity of the damage which might be caused for the parties to the concentration or a third party, and the effects of the implementation of the concentration concerned on competition.
Therefore, acting in line with the request of the notifying party, in its decision of 1 March 2022 the CCA allowed the implementation of particular steps relating to the implementation of the notified concentration before the expiry of the time period specified under Article 22 paragraph 1 of the Croatian Competition Act, with respect to all steps that are necessary for the implementation of the above-mentioned decision of the Single Resolution Board.
Taking into account the explanations in the request of the notifying party and the extraordinary circumstances in the market where the operation of Sberbank Hrvatska is not possible given the resolution regime due to the Russian invasion on Ukraine, the uncontrolled failing of Sberbank Hrvatska would have negative effects on the Croatian economy, were failing could cause serious damage both to the parties to the concentration and third parties.
In conclusion, the CCA notes that the compatibility assessment procedure with respect to the concentration concerned will be carried out following the receipt of the pre-notification in line with Article 21 of the Croatian Competition Act, i.e., within a normal compatibility assessment procedure.