"State creating, protecting monopolies"

The state is the main reason why there are companies in Serbia that are abusing their dominant market positions and colluding with competitors to fix prices.

Izvor: Beta

Wednesday, 22.09.2010.

09:30

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The state is the main reason why there are companies in Serbia that are abusing their dominant market positions and colluding with competitors to fix prices. This is according to participants in a debate titled, "Monopolies and Cartels in the Serbian Economy." "State creating, protecting monopolies" "The impression held by the public is that the state is developing a strategy to fight monopolies, but it is in fact the state that is creating monopolies," the Economics Institute's Professor Danica Popovic said. At the event, organized at the National Bank of Serbia by the Center for Democracy in cooperation with the Friedrich Ebert Foundation, Popovic stressed that the state is using high import duties and less obvious methods to protect monopolists. One of the obscure methods, according to her, is obstructing large foreign retail chains to obtain land to set up shop in Serbia, and preventing competition in the import of certain type of goods, enabling select importers to make massive profits. "When it comes to competition, Serbia is like a bar full of smoke, and the first thing that needs to be done is to open the window and create conditions for fair market competition," Popovic said, adding that emergency imports do not protect consumers, although they are a great opportunity for imports to make very good money. Assistant Minister of Commerce Dusan Protic pointed out that bad regulations can no longer serve as a justification for the Commission for the Protection of Competition to fail to take action to dismantle monopolies and penalize uncompetitive behavior, because the new Law on Protection of Competition is in line with EU rules.

"State creating, protecting monopolies"

"The impression held by the public is that the state is developing a strategy to fight monopolies, but it is in fact the state that is creating monopolies," the Economics Institute's Professor Danica Popović said.

At the event, organized at the National Bank of Serbia by the Center for Democracy in cooperation with the Friedrich Ebert Foundation, Popović stressed that the state is using high import duties and less obvious methods to protect monopolists.

One of the obscure methods, according to her, is obstructing large foreign retail chains to obtain land to set up shop in Serbia, and preventing competition in the import of certain type of goods, enabling select importers to make massive profits.

"When it comes to competition, Serbia is like a bar full of smoke, and the first thing that needs to be done is to open the window and create conditions for fair market competition," Popović said, adding that emergency imports do not protect consumers, although they are a great opportunity for imports to make very good money.

Assistant Minister of Commerce Dušan Protić pointed out that bad regulations can no longer serve as a justification for the Commission for the Protection of Competition to fail to take action to dismantle monopolies and penalize uncompetitive behavior, because the new Law on Protection of Competition is in line with EU rules.

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