{"id":3269,"date":"2015-03-09T00:00:00","date_gmt":"2015-03-09T00:00:00","guid":{"rendered":"http:\/\/aztn.hr\/three-opinions-issued-by-cca\/"},"modified":"2022-09-19T09:54:11","modified_gmt":"2022-09-19T09:54:11","slug":"three-opinions-issued-by-cca","status":"publish","type":"post","link":"https:\/\/www.aztn.hr\/en\/three-opinions-issued-by-cca\/","title":{"rendered":"Three opinions issued by CCA"},"content":{"rendered":"

Croatian Institute for Health Insurance: Can the representatives of the Croatian Employers’ Association sit at the meetings of the Commission for Orthopaedic Medical Devices?<\/strong><\/p>\n

In the ongoing process involving the revisions of the bylaws regulating the criteria for setting the prices of orthopaedic medical devices and other devices and the criteria for including the said medical devices on the HZZO lists, HZZO asked the opinion of the CCA relating to the request of the Croatian Employers’ Association (CEA) asking for participation in the monthly meetings of the Commission for Orthopaedic Devices and the Commission for medical and technical devices of one associate member of the CEA at a time, depending on the agenda of the meeting.<\/p>\n

HZZO notes that CEA members are HZZO contract partners and that in the meetings of the Commission different proposals of entry holders (among which are also CEA members) are discussed relating to the inclusion of particular medical devices on the HZZO list of orthopaedic medical devices and other medical and technical devices, the prices of medical devices and the revisions of medical indications and guidelines. In the meetings of the Commission, a detailed data on products represented or supplied by different entry holders (members and non-members of CAE) and which are delivered and compensated by HZZO are also exchanged.<\/p>\n

In that sense, HZZO asked the opinion of the competition authority as to whether the participation of CEA members in the meetings of the Commission complies with the provisions of the Competition Act.<\/p>\n

Taking into account the HZZO writing where it was stated that the members of the Commission discuss and decide in their meetings on product characteristics and prices of particular medical devices, the CCA held the view that the exchange of information between undertakings may have anticompetitive effects.<\/p>\n

Namely, in the sense of competition rules the exchange between competitors of strategic data is likely to be caught by prohibition, such as the data related to prices, customer lists, production costs, quantities, marketing plans, investments, technologies etc. Any exchange of confidential data (such as business secrets) and information exchanges between competitors of individualised data (such as oligopoly exchanging aggregated data), current data (such as future data and data not older than one year), in general, exchange of information that have actual or likely market value and data that have not been made available to the public should therefore be considered a restriction of competition.<\/p>\n

On the other hand, in the sense of competition rules it is allowed to exchange data once made public and accessible (such as public registers), aggregate data (such as statistical data of at least three undertakings), historic data (in general older than one year) and non-strategic data (such as accounting methods), which are unlikely to lead to a collusive outcome.<\/p>\n

Taking everything above said into account the CCA stated in its opinion that within the meaning of competition rules it is not advisable for the members of CEA (that are undertakings) to sit in the meetings of the Commission and discuss and decide on their products and products of their competitors. At the same time, under such circumstances it would be not appropriate to make the data and information of actual or potential competitors alike, available to the representatives of the CEA.<\/p>\n

Can ACI offer discounts for berthing services to publically financed entities? <\/strong><\/p>\n

<\/strong>ACI d.d. (Adriatic Croatia International Club operating a marina chain alongside the Croatian part of the Adriatic coast) sought the opinion of the CCA regarding the Draft Decision proposing discounts on the prices for berthing services to vessels owned by the entities that are financed from the State budget or the budgets of local and regional units as well as other companies and legal persons of strategic interest of the Republic of Croatia.<\/p>\n

Concretely, in accordance with the Draft Decision in 2015 ACI would allow a 10 per cent discount of the berth price to the above mentioned entities.<\/p>\n

Generally, within the meaning of competition rules discounts offered to buyers of goods and users of services produce positive effects, but only provided that these discounts are given under transparent, objective and justifiable criteria. On the other hand, discount schemes may result in abuse of a dominant position by an undertaking by applying dissimilar conditions to equivalent transactions with other trading parties, or lead to the conclusion of restrictive agreements resulting in distortion of competition in the relevant market.<\/p>\n

The view of the CCA was therefore that it is necessary to take into account the situation in the market including the customers who would be offered discounts under the Draft Decision at issue. Where discounts would be offered on a selective basis to particular undertakings in the relevant market, such practice is likely to produce anticompetitive effects. In that sense, the discounts concerned may contravene the State aid rules and it is the opinion of the CCA that ACI should consult the competent Ministry of Finance regarding the application of State aid rules in this area.<\/p>\n

What is the opinion of the CCA with respect to chimney cleaning services? <\/strong><\/p>\n

The municipality of Zagreb (City of Zagreb) asked for the opinion of the CCA with respect to the Draft Decision on the provision of chimney cleaning services.<\/p>\n

Concretely, the revised rules contained in the Draft Decision provide for the establishment of a single market for the provision of chimney cleaning services within the territory of the City of Zagreb and a single, uniform price list for the provision of these services.<\/p>\n

The proposed Draft Decision also provides for a concession award to one single bidder. In that sense the best bidder could be a legal person or a natural person or a tradesman or a joint bidding. The best bidder that would perform the utility service concerned in the single chimney cleaning market in the territory of the City of Zagreb would also set a single price list for the provision of chimney cleaning activities applicable on the whole territory of the City of Zagreb. This uniform chimney cleaning area assumes the obligation of employment of at least 60 chimney sweepers who have completed secondary school training courses specializing in chimney sweep whereas at least 30 of them must be master sweepers. The selected entity must also dispose of adequate chimney sweeping equipment with the view to achieving high standards in the performance of the chimney cleaning services.<\/p>\n

Despite the fact that such a decision is generally being adopted by the City of Zagreb pursuant to the provisions regulating the provision of utility services it is advisable from the point of view of competition rules that the conditions for market access and the participation in a certain market should be determined in the first place on the basis of qualitative criteria which cannot be excessive and place additional burden on undertakings.<\/p>\n

In the opinion of the CCA the explanation attached to the Draft Decision does not cover the reasons why the concession may be awarded only to an undertaking that has not less than 60 employed chimney cleaners who have completed the secondary school training courses specializing in chimney sweep whereas at least 30 of them must be master sweepers.<\/p>\n

Taking into account that for the sake of quality and safety of the performed chimney cleaning services in the whole territory of the City of Zagreb a larger number of chimney sweepers must be employed such a condition is likely to result in the raising of entry barriers to this relevant market for the undertakings that employ less workers.<\/p>\n

Finally, in its opinion the CCA stated that within the meaning of competition rules special attention must be paid as to the prices under the proposed chimney cleaning model. In other words the prices under the new scheme should not be higher than the existing prices for the provision of the same services, which would produce harm to the users of these services and go contrary to the purpose of the adoption of such a decision.<\/p>\n","protected":false},"excerpt":{"rendered":"

Croatian Institute for Health Insurance: Can the representatives of the Croatian Employers’ Association sit at the meetings of the Commission for Orthopaedic Medical Devices? In the ongoing process involving the revisions of the bylaws regulating the criteria for setting the prices of orthopaedic medical devices and other devices and the criteria for including the said […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3269","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"yoast_head":"\nThree opinions issued by CCA - AZTN<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aztn.hr\/en\/three-opinions-issued-by-cca\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Three opinions issued by CCA - AZTN\" \/>\n<meta property=\"og:description\" content=\"Croatian Institute for Health Insurance: Can the representatives of the Croatian Employers’ Association sit at the meetings of the Commission for Orthopaedic Medical Devices? 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