The Agency for Protection of Competition has been established as functionally independent entity with the entry into force of the new Law on Protection of Competition (“Official Gazette of the Republic of Montenegro”, no. 44/12) and following registration with the Central Register of Economic Entities in February 2013. Prior to the founding of the Agency the work on competition law and policy was fully under the Ministry of Economy and Directorate within the Ministry.
The area of free market competition, regulated by Law, represents the area that has direct and significant impact on the overall economic development, the state and possibilities of investment activity, raising the level of quality of goods and services, thus creating the conditions for lower prices and creation of modern, open market economy, providing Montenegro with possibility to participate in the single market of the European Union and in other international market trends. Competition policy deals with protection and strengthening of competition, which, in itself, through enabling competitors to compete, provides economically efficient outcomes. In other words, the policy should be directed towards establishing a market structure that will enable the increase of economic efficiency. The introduction of competition law is one in a number of important projects implemented by Montenegro. No matter the fact that Montenegrin market is liberalized and opened to new participants- international companies, the issue of competition becomes topical, primarily for the domestic market participants, in order to protect free market competition, improve economic efficiency and ensure equality of participants in the market, by constant monitoring of market competition in general, and in particular economic sectors.
Montenegro has committed to the provisions of Article 73 of the Stabilization and Association Agreement (SSA), in terms of providing standards in application of competition rules, arising from Articles 81, 82 and 86 of the Treaty establishing the European Community, respectively Articles 101, 102 and 106 of the Treaty on the Functioning of the European Union- TFEU, which further involves creating a transparent legal framework, the establishment of an operationally independent institutions and efficient implementation.
Accordingly, a new Law on Protection of Competition was passed, which secured European principles in the area of competition.
The main objective of this law is harmonization of national law with the one of the EU in the field of competition, where the legislator tried to more closely mimic the model that works at the level of the EU. The Law represents the promotion of regulations on competition protection, through the number of new legal provisions with regard to the previous one.
One of the main goals is orientation of the Law on protection of competition to consumers and politics of Montenegro, which must be the basic element of proper market economy that provides equal conditions for all market participants who intend to provide consumers with wider choices and reasonable price/quality ratio, which is one of the main tasks of the Agency for Protection of Competition.
The law represents main unit of the total economic and legal environment of Montenegro. Its institutional structure and legal instruments create economic and legal mechanisms, which will be, in the long run at the macro and micro levels, a promoter of establishing healthy relationships in our market economy on the basis of equal starting conditions for all businesses.
Performance of competition related activities in favor of consumers means ensuring such conditions in the market, which will increase the safety of consumers and expose them to variety of choices, by more efficient pricing, through innovation and improved quality and product diversity. The functioning of competition in the provision of consumer welfare implies functioning for the benefit of the economy, and, as a result of that, for the common good and competitiveness, the basic aim is the interest of final consumers in the market. We believe that this legal solution will give its full contribution to the promotion of competition in Montenegro.
The conclusion is that this Law is step forward from the perspective of the business environment and regulatory risk to which market participants are exposed, and that it will provide a more effective legal protection in the field of competition protection.
JURISDICTION
Agency for Protection of Competition is operating as an institution with public authority, which performs administrative and professional work in the area of competition protection, which includes assessment of restrictive agreements between undertakings, investigation and establishment of potential abuses of dominant position and assessment and control of mergers and acquisitions.
In addition to the jurisdiction and authority provided by the Law, the area of competition protection is regulated by a series of regulations, directives and rulebooks, adopted by the Government of Montenegro, as proposed by the Ministry of Economy and enforced by the Agency.
The Agency shall, within the limits of its powers, in particular:
1) monitor and analyze the competition conditions in the market and in particular economic sectors;
2) determine the research methods of competition;
3) approve exemptions from the prohibition of certain agreements and approve concentrations of undertakings in accordance with the Law on Protection of Competition;
4) take measures against undertakings and associations of undertakings for infringement of competition in the market, or take measures with a view to preventing the occurrence of or terminating the infringement and eliminating harmful effects for undertakings and consumers;
5) provide informal Guidance (Opinions) on interpretation of antitrust regulations (law and bylaws);
6) prepare the specialized grounds for the drafting of laws and secondary legislation;
7) determine the fee for decisions, in accordance with this Law and with approval of the Government;
8) conduct administrative procedures and decide in individual administrative matters;
9) submit a request for initiating infringement procedure to the competent authority and/or issues misdemeanor warrants, pursuant to the law governing offenses;
10) provide opinions on the current regulations, which affect or may affect competition, and inform the public on that matter;
11) form the expert and advisory bodies for the implementation of this Law;
12) cooperate with international and national organizations and institutions in the area of competition;
13) prepare Activity report for the previous year and Financial plan for the following year;
14) publish statistical data and keep record of approved and notified mergers;
15) supervise the implementation of measures imposed by decisions;
16) perform other duties in accordance with this Law.
The Agency reports to the Government.
The Agency shall submit to the Government and Parliament of Montenegro annual Activity report for approval.
The Agency is based in Podgorica.
Managing the Agency
The Agency shall be managed by the Director. Director shall be appointed by the Government of Montenegro for the period of four (4) years.
The Director shall have a Deputy appointed by the Government for the period of four (4) years.
Detailed internal organization, responsibilities and scope of the Agency’s work, method and process of decisions issuing, passing and publication of general acts and other issues of relevance to the work of the Agency, are established by the Statute of the Agency, which was approved by the Government of Montenegro and published in the ˝Official Gazette of Montenegro˝, no.10/13.
Human Resources
The Agency currently employs twentyeight (28) civil servants and employees, including the Director.
Total twentysix (26) employees of the Agency have a university degree, and two (2) employee is with secondary education degree.
All employees of the Agency have passed the state examination.