Nebojša Jovović, director of the Agency for the Protection of Competition, said that the significant increase in food prices represents a significant pressure on citizens' budgets and that as an institution they must act to find a way to stop this trend.
"We have come to a situation where citizens cannot finance their basic needs, which is absolutely unacceptable. (...) This is unsustainable for our standards," said Jovović in Colors of the Morning on TV Vijesti.
He said that the action "Stop Inflation" gave a short-term result, but that it is necessary to find a long-term solution that will enable citizens to "function normally".
Jovović said that the analysis of the retail market, i.e. the price of food in large retail chains, which he ordered to be carried out in order to possibly see if there was a violation of the Law on Protection of Competition, is complex and that a "certain period of time" is needed in order to well done. He didn't have a specific answer when that might be.
"If it turns out that there has been a violation of the Law on the Protection of Competition in a part of our jurisdiction, the Agency has the option of initiating investigation and misdemeanor proceedings against market participants. Fines for violations of competition are very large, ranging from one to 10 percent of revenue in the year precedes injury to the competition," emphasized Jovović.
He said that since he has been the director of the Agency, there have been no obstacles in their work when it comes to the relationship with trade chains.
Jovović pointed out, among other things, that the Agency still does not have the possibility of directly punishing market participants. "I hope that there will be changes in the regulation, where the penalty will come as a direct mechanism in the Agency," he added.
Jovović said that he agrees with the Minister of Finance, Aleksandar Damjanović, that the increase in fuel prices cannot be an alibi for the increase in food prices in retail chains.
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"I understand that fuel prices have risen and there are other factors that have influenced them - inflation, wage increases, market instability in European countries and beyond. There are more factors that have influenced the price increase. However, I would not understand if the costs incurred they are not proportional to margins and prices. In one part, I understand the increase in costs if it was proportional, but if it was an alibi or a moment to use to increase prices, then no. One of the actions of the Agency will also be aimed at looking at how much prices have increased, what are the margins..." he said.
Lidl to say if there are obstructions
Jovović, when asked whether Lidl's entry into the market could change the pricing policy, said that he supports any initiative that will lead to healthier competition on the market.
He said that Lidl has not yet approached them with the aim of approving participation in the market.
"Representatives of that company, if they have any obstructions on the Montenegrin market, should say so and why they cannot enter the market. The state and all institutions should support such an investor who, in the opinion of all economic analysts, would contribute to the reduction of prices ", he said.
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