The 3rd Workshop within the Scope of the “Competition Law for Practitioners” entitled “Introduction to Cartels”
NEWS
The Croatian Transport Law Association, the Croatian Competition Law and Policy Association (HDPPTN) and HAKOM held the third workshop within the scope of the “Competition Law for Practitioners” entitled “Introduction to Cartels”.
The Croatian Transport Law Association, the Croatian Competition Law and Policy Association (HDPPTN) and HAKOM held the third workshop within the scope of the “Competition Law for Practitioners” entitled “Introduction to Cartels”.
Zagreb, 19 February 2020 – A workshop “Introduction to Cartels” was held in HAKOM. This was the third workshop, held within the scope of “Competition Law for Practitioners” The Croatian (HDTP), the Croatian Society for law and competition Policy (HDPPTN) and HAKOM.
More than twenty participants attended the workshop. Jasminka Pecotić Kaufman (University of Zagreb, Faculty of Economics Department of Law) presented the subject of cartel agreements between entrepreneurs from the perspective of the European and Croatian law.
Cartel agreements are considered the most serious infringement of competition law because they lead to a situation of collective monopolies in the market i.e., to the abolition of competition among competitors that are inherent to a market economy.
Although the cartels lead to clear negative consequences on consumer welfare (prices on cartelized markets are 15-30% higher than if hadn’t been any cartels), they generate huge profits for the undertakings involved, which makes them difficult to eradicate at a global level.
Ms. Pecotić Kaufman pointed to possible difficulties in proving cartels, particularly in more developed economies, which led to the development of institutes such as the immunity for whistle-blowers and high fines for perpetrators on the one hand, and, on the other hand, to the development of jurisprudence at the level of the highest European courts allowing for a more flexible interpretation of Article 101 “Treaty on the Functioning of the European Union” (Agreement upon a single comprehensive doctrine and Common Doctrine Classification ).
Numerous examples of domestic practice were topic of the workshop, such as the case of Osijek bakery cartel, the first case where Croatian Agency for Protection of Market Competition imposed a fine on perpetrators based on 2009 Competition Protection Act, and the case of the cartel of Split Auto schools where Croatian Agency for the Protection of Market Competition also acted.
Particular attention was paid to the distinction between explicit and tacit collusion, the proof of cartel infringement in the parallel treatment of competitors on the market, and the arguments that undertakings often put forward before our competent authorities, which do not lead to exhumation. In addition, cases of exchange of information between competitors, which may, under certain circumstances, be part of a cartel arrangement, have been analysed and, in others, may be regarded as market behaviour which does not lead to an infringement of Article 101. Treaty on the Functioning of the European Union, or Article 8 Of the Act on the Protection of competition.
At the end of the workshop, Ms. Pecotić Kaufman also discussed the parent company's responsibility for the subsidiary's participation in the cartel arrangement, possible cartel settlements available as a possibility in proceedings conducted by the European Commission, but not by the domestic authority, immunity issues for cartel applicants and possible damages compensation for persons damaged by cartel activities on the market.
As it used to be in this cycle, this one was extremely useful to trainees (lawyers, corporate lawyers, etc.). Aside from the further development of domestic practice, the topics of cartel agreements and their Regulation under the competition protection regulations will certainly remain one of the key topics for all those interested in the market law.
!!!xGALERIJAx!!!
# # #
For additional information please contact:
Croatian Regulatory Authority for Network Industries (HAKOM)
Roberta Frangeša Mihanovića 9
10110 Zagreb, Croatia
Tel. + 385 (0) 1 700 70 07
Fax + 385 (0)1 700 70 70
Media inquiries can be submitted online using HAKOM’s official website: https://www.hakom.hr/
Registration required.
More than twenty participants attended the workshop. Jasminka Pecotić Kaufman (University of Zagreb, Faculty of Economics Department of Law) presented the subject of cartel agreements between entrepreneurs from the perspective of the European and Croatian law.
Cartel agreements are considered the most serious infringement of competition law because they lead to a situation of collective monopolies in the market i.e., to the abolition of competition among competitors that are inherent to a market economy.
Although the cartels lead to clear negative consequences on consumer welfare (prices on cartelized markets are 15-30% higher than if hadn’t been any cartels), they generate huge profits for the undertakings involved, which makes them difficult to eradicate at a global level.
Ms. Pecotić Kaufman pointed to possible difficulties in proving cartels, particularly in more developed economies, which led to the development of institutes such as the immunity for whistle-blowers and high fines for perpetrators on the one hand, and, on the other hand, to the development of jurisprudence at the level of the highest European courts allowing for a more flexible interpretation of Article 101 “Treaty on the Functioning of the European Union” (Agreement upon a single comprehensive doctrine and Common Doctrine Classification ).
Numerous examples of domestic practice were topic of the workshop, such as the case of Osijek bakery cartel, the first case where Croatian Agency for Protection of Market Competition imposed a fine on perpetrators based on 2009 Competition Protection Act, and the case of the cartel of Split Auto schools where Croatian Agency for the Protection of Market Competition also acted.
Particular attention was paid to the distinction between explicit and tacit collusion, the proof of cartel infringement in the parallel treatment of competitors on the market, and the arguments that undertakings often put forward before our competent authorities, which do not lead to exhumation. In addition, cases of exchange of information between competitors, which may, under certain circumstances, be part of a cartel arrangement, have been analysed and, in others, may be regarded as market behaviour which does not lead to an infringement of Article 101. Treaty on the Functioning of the European Union, or Article 8 Of the Act on the Protection of competition.
At the end of the workshop, Ms. Pecotić Kaufman also discussed the parent company's responsibility for the subsidiary's participation in the cartel arrangement, possible cartel settlements available as a possibility in proceedings conducted by the European Commission, but not by the domestic authority, immunity issues for cartel applicants and possible damages compensation for persons damaged by cartel activities on the market.
As it used to be in this cycle, this one was extremely useful to trainees (lawyers, corporate lawyers, etc.). Aside from the further development of domestic practice, the topics of cartel agreements and their Regulation under the competition protection regulations will certainly remain one of the key topics for all those interested in the market law.
!!!xGALERIJAx!!!
# # #
For additional information please contact:
Croatian Regulatory Authority for Network Industries (HAKOM)
Roberta Frangeša Mihanovića 9
10110 Zagreb, Croatia
Tel. + 385 (0) 1 700 70 07
Fax + 385 (0)1 700 70 70
Media inquiries can be submitted online using HAKOM’s official website: https://www.hakom.hr/
Registration required.
ABOUT HAKOM: HAKOM (www.hakom.hr) - Croatian Regulatory Authority for Network Industries – ensures preconditions for a fair market competition, stable growth and environment for innovations in the electronic communications and postal services market. HAKOM protects users’ interests and the possibility of choice among various communications and postal services at affordable prices, defines sustainable competitive conditions for operators and service providers under fair conditions for return on investment, and provides support to economic growth, public services and the quality of life in the Republic of Croatia by using modern technologies. HAKOM’ strategic goals are: to promote regulation of the electronic communications and postal services market, to support growth of investments and innovations in the electronic communications and postal services market, to provide efficient use of limited resources, to accelerate the growth of broadband products and services, to provide affordable offers of communications and postal services, to provide protection and informing of users, to build an efficient and comprehensive information system, to define and implement efficient processes, and to acquire multi-disciplinary.
Za sve dodatne informacije molimo kontaktirajte:
Hrvatska regulatorna agencija za mrežne djelatnosti (HAKOM)
- Ulica Roberta Frangeša-Mihanovića 9
- 10110 Zagreb
- Tel: +385(0)1 700 70 07
- Faks: +385(0)1 700 70 70
Novinarski upiti postavljaju se na službenoj web stranici HAKOM-a na adresi: www.hakom.hr
O Hakom-u
HAKOM - Hrvatska regulatorna agencija za mrežne djelatnosti – osigurava pretpostavke za ravnopravno tržišno natjecanje, stabilan rast i prostor za inovacije na tržištima elektroničkih komunikacija te poštanskih i željezničkih usluga. HAKOM štiti interese korisnika i osigurava mogućnost izbora usluga po prihvatljivim cijenama, određuje održive konkurentne uvjete operatorima, davateljima poštanskih usluga i željezničkim prijevoznicima uz pravedne uvjete za povrat ulaganja te pruža podršku ekonomskom rastu, javnim uslugama i kakvoći života u RH primjenom suvremenih tehnologija. Strateški ciljevi HAKOM-a su unaprjeđenje regulacije tržišta elektroničkih komunikacija te željezničkih i poštanskih usluga, podržavanje rasta ulaganja i inovacija u tržišta, učinkovita uporaba ograničenih resursa, ubrzani rast širokopojasnih usluga, velika ponude komunikacijskih, željezničkih i poštanskih usluga, zaštita i informiranje korisnika, izgradnja učinkovitog i sveobuhvatnog informacijskog sustava, određivanje i ugradnja učinkovitih procesa te stjecanje multidisciplinarnih stručnosti i znanja u području reguliranja tržišta.