Scholarly record

CONCENTRATIONS IN REPUBLIC OF MACEDONIA IN 2014 AND 2015

A. Jashari

Abstract

This article discusses the concentrations in Republic of Macedonia in the 2014 and 2015 with regard to the developments in concentrations. The discussion is primarily focused in the legislative framework of the developments as well as in the relevant case law during the time period 2014-2015. This paper reviews the meaning and ways of creating concentrations and gives concrete examples of the practice in Republic of Macedonia. Further on, this paper continues with the various types of concentrations. Concentration as forms of merger or acquisition as business entities can appear in different forms. Depending on the mode of creation, concentrations may be horizontal and non horizontal. From the many types of concentrations, very important concentrations are the so-called non-horizontal merger arising from adhesion of active entities in different relevant markets. These concentrations can be found in the form of vertical concentrations and conglomerates. Vertical concentrations and conglomerates. Many explanations on these concentrations can be seen at the varying from horizontal concentration have no significant impact on eliminating the competition, unless if as the result of their concentration a dominant position of one of the entities is created. Not all concentrations are prohibited. Therefore, if the concentration does not significantly impede, restrict or distort the effectives market competition or its essential part and which are in accordance with legal provisions, are considered permitted. In assessing these concentrations, the competent body first of all assesses the existence of a dominant position. Because of the economic consequences that may arise from the creation of concentrations, this paper reviews the role of the competent institutions in regards to the (non) creation of concentrations. In Republic of Macedonia (R.M.), the Constitution guarantees the freedom of trade and business, security and equal protection of the legal position of the different entities in the market. From a historical perspective, the R.M. was the first country in the region to sign the Stabilization and Association Agreement (SSA) with the European Union (EU) in April 2001, which entered into force in 2004, and in 2005 the European Council granted the status of candidate country to Macedonia. This status provides for a competition regime to be applied in the trade relations between the European Union and the R.M. The existing antitrust provisions that were in force until January 2005, were replaced by the new Law on Protection of Competition (LPC). These legislative changes which entered into force in 2010 also resulted in reforms in the relevant institutional structure. The purpose of the LPC is to ensure free competition in the domestic market in order to stimulate economic efficiency and consumer’s welfare. In particular, the 2011 is a year characterized with good progress in the area of antitrust law and specifically mergers. With regard to EU Merger regulation, it should be noted that it prohibits the acquisitions or concentrations that might considerably distort competition. The results from the notification procedure have a decisive role in concentrations. Important cases are carried out in that sphere. The number of decisions adopted by the Commission for Protection of Competition as well as the number of cases adopted by the Administrative Court has increased with regard to concentrations. The enforcement of these and other relevant laws in the field is under the authority of the Commission for the Protection of Competition (CPC). It should be noted that one of the core responsibility of the CPC is the compliance of the Macedonian legislation with EU competition rules. Last but not least, having in mind that competition law is also relevant area of reform required for the EU accession of R.M., the annual “progress reports” issued by the EU Commission regarding R.M. dealing with competition will be also addressed in this article.

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