Independent and efficient institutions are essential to prevent restriction of competition

Messages from the session of the Board of the Energy and Mining Association of the Chamber of Commerce

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Photo: PKCG
Photo: PKCG
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Independent and efficient institutions are key to preventing the restriction of competition, it was assessed at the session of the Board of the Energy and Mining Association of the Chamber of Commerce (PKCG).

The Board of the Association elected its new president, Darko Krivokapić, an electrical engineer with many years of work experience in the Electric Industry (EPCG) and the executive manager of the Directorate for Energy Management in that company.

Krivokapić is also the deputy president of the PKCG Assembly.

The session, led by the Deputy President of the Board, Nikola Kovačević, was held in an expanded composition, and representatives of the telecommunications sector also took part in it. Also, the session was thematic in nature, dedicated to the policy of competition protection in the energy and telecommunications sectors and was held as one of the activities of the IPA project related to competition protection.

Kovačević said that the session represents the fourth event in a series on this topic, which was organized in cooperation with PKCG.

"Since competition policy and the right to competition have a special importance for the economy and society, and are necessary for normal functioning, especially in the energy and telecommunications sectors, we organized a session on this topic. The marked development in the field of telecommunications and the obligation to connect with climate change in the field of energy represent only some of the challenges related to the violation of competition, especially the abuse of a dominant position and state aid", said Kovačević, emphasizing the importance of the topic in the context of concluding negotiations on the accession of Montenegro. to the European Union (EU).

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photo: PKCG

The director of the Agency for the Protection of Competition, Nebojša Jovović, pointed out that the PKCG is the best place to discuss the topics of competition protection and state aid.

"This is a great opportunity for the economy to hear very complex things when it comes to protecting competition. Based on the questions heard at previous gatherings, it is clear that it is necessary to strengthen awareness of competition protection and improve understanding of the rules governing this area. It is necessary to talk about the abuse of a dominant position, restrictive and prohibited agreements, concentration control, that is, mergers and acquisitions of economic entities and other things," said Jovović.

He added that the biggest challenges to closing Chapter 8 with the EU relate to companies that have been granted state aid.

The focus of the presentation by Andrej Plahutnik, the team leader dealing with the competition protection project in Montenegro, was effective competition, as well as special challenges in the field of energy and telecommunications, with an emphasis on key aspects of adapting Montenegrin legislation to European standards.

He emphasized the importance of legislative harmonization with the EU Acquis in the field of competition policy, noting that Montenegro has successfully completed this process.

"Montenegro has completed legislative alignment with the EU Acquis included in the Competition Policy chapter, and adequate administrative and judicial capacities have been built in the country for antimonopoly control of mergers and control of state aid," said Plahutnik.

He particularly pointed out the importance of a single point of contact in the field of competition protection, which, he says, is extremely useful, especially for future entrepreneurs.

"We are working to make this single point of contact operational by the end of this year. In order to achieve this, it is necessary to fulfill certain final criteria, not only in the field of competition, but also in accordance with the legal order of Montenegro according to the directive on services of the European Union", said Plahutnik.

He added that the final criteria are very clear, but that their fulfillment is not at all easy, and that they must be realized with a wider political consensus and extensive work.

As he states, these criteria are deeply connected to Chapters 23 and 24, which concern the rule of law. The EU has clearly recognized the importance of the work of the Agency for the Protection of Competition, which performs some of the key tasks.

According to him, a serious problem lies in the fact that competition protection agencies in all EU member states, and even in some candidate countries, have the authority to impose sanctions, which is currently not the case in Montenegro.

According to Plahutnik, the Agency for the Protection of Competition will face serious problems during the review by the EU, if it does not get the authority to impose sanctions.

The record of enforcement of antimonopoly control was also the subject of his presentation.

According to him, Montenegro has a satisfactory record of implementation in this area, including effective and efficient administrative and judicial monitoring of detected irregularities, as well as the introduction of sanctions where necessary.

When it comes to the challenges brought by the adoption of European standards, such as identifying conditions, screening, and defining negotiating positions, Plahutnik emphasized the importance of transparency and consistency in these processes, in order to ensure fair competition on the market.

According to him, the philosophy of politics and competition law aim to protect consumers and ensure fair conditions for all market participants.

"Competition policy not only protects consumers, but also competition as a category, ensuring that all participants have the same conditions of performance on the market," said Plahutnik.

The special focus of the presentation was on the energy sector. Plahutnik emphasized the importance of energy efficiency and sustainability, stressing that the energy sector is crucial for economic stability and sustainable development.

"The energy sector plays a key role in ensuring economic stability and sustainable development. We need to improve the regulatory framework in order to support investments in renewable energy sources," Plahutnik pointed out.

He stressed the importance of efficient and independent institutions in preventing the restriction of competition.

"The state must provide a good legislative framework and eliminate entry barriers in order to enable fair and efficient competition. "Independent and efficient institutions are key to preventing the restriction of competition," concluded Plahutnik.

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