Commission: Delta has Belgrade market monopoly

The Competition Commission passed a new ruling prohibiting the merger of Primer C and Delta-owned C Market.

Izvor: B92

Tuesday, 20.11.2007.

14:10

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The Competition Commission passed a new ruling prohibiting the merger of Primer C and Delta-owned C Market. The Commission’s initial ruling was overturned by the Supreme Court, because of, as they put it, alleged mistakes in procedure. Commission: Delta has Belgrade market monopoly Commission President Dijana Markovic-Bajalovic told B92 that the new ruling had been passed on the basis of the earlier situation, as well as new evidence that Delta, owned by Miroslav Miskovic had a dominant, that is, monopolistic position on the market. According to the Commission’s ruling, Delta controls 55 percent of the Belgrade market, giving it a monopoly. Markovic-Bajalovic told B92 that Miskovic had unlawfully taken over C Market by initially buying up the retail chain’s shares, and only then seeking the Commission’s approval for the takeover, which he has yet to receive. “We launched legal proceedings over the matter, wanting Delta to be penalized for acting without approval. The court dismissed the charge, stating that Delta was innocent, and that’s why we lodged an appeal with a higher body,” said the commission president. She said that the former Monopolies Commission, that had earlier led the inquiry into the matter, had needed more time to establish whether Cypriot company Hemslade, also owned by Miskovic, stood behind Primer C. Markovic-Bajalovic said that she would ask the republic prosecutor to investigate whether the Supreme Court had broken the law by overturning the initial ruling prohibiting the merger. “We’ll wait for Delta’s reaction - that we know will be negative - and we’re still conducting market analysis, as this is important for all citizens, and we’ve found someone to undertake this both in Belgrade and in Serbia,” she said. Delta told B92 that they had no comment to make on the Commission’s latest decision because, as they put it, the ruling had yet to be made official. Delta representatives say that the fact that Commission addressed the media first spoke for itself. However, Markovic-Bajalovic said that the ruling had already been passed, and that Delta could expect the official ruling in the next few days.

Commission: Delta has Belgrade market monopoly

Commission President Dijana Marković-Bajalović told B92 that the new ruling had been passed on the basis of the earlier situation, as well as new evidence that Delta, owned by Miroslav Mišković had a dominant, that is, monopolistic position on the market.

According to the Commission’s ruling, Delta controls 55 percent of the Belgrade market, giving it a monopoly.

Marković-Bajalović told B92 that Mišković had unlawfully taken over C Market by initially buying up the retail chain’s shares, and only then seeking the Commission’s approval for the takeover, which he has yet to receive.

“We launched legal proceedings over the matter, wanting Delta to be penalized for acting without approval. The court dismissed the charge, stating that Delta was innocent, and that’s why we lodged an appeal with a higher body,” said the commission president.

She said that the former Monopolies Commission, that had earlier led the inquiry into the matter, had needed more time to establish whether Cypriot company Hemslade, also owned by Mišković, stood behind Primer C.

Marković-Bajalović said that she would ask the republic prosecutor to investigate whether the Supreme Court had broken the law by overturning the initial ruling prohibiting the merger.

“We’ll wait for Delta’s reaction - that we know will be negative - and we’re still conducting market analysis, as this is important for all citizens, and we’ve found someone to undertake this both in Belgrade and in Serbia,” she said.

Delta told B92 that they had no comment to make on the Commission’s latest decision because, as they put it, the ruling had yet to be made official. Delta representatives say that the fact that Commission addressed the media first spoke for itself.

However, Marković-Bajalović said that the ruling had already been passed, and that Delta could expect the official ruling in the next few days.

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