The obligation to notify the concentration of economic entities, in terms of Article 14, paragraph (1) points (a) and (b) of the Competition Act (Official Gazette of BiH, No. 480/5, 76/07, 180/09), exists if the total annual revenues of the concentration participants, generated by the sale of goods and/or services on the world market, amount to 100.000.000,00 BAM, based on the financial statements for the year preceding the concentration, and if the total revenue of each of at least two economic entities participating in the concentration, generated by the sale of goods and/or services in the market of Bosnia and Herzegovina, amounts to at least 8.000.000,00 BAM, or if the combined market share of the concentration participants in the relevant market exceeds 40.0%.
During the process, the Competition Council, for the purpose of completing data, requests information from other participants in the relevant market, other competent institutions, as well as third parties, who, in accordance with Article 35 of the Competition Act, are obliged to provide all necessary information in the form of written submissions or oral statements and provide necessary data and documentation for inspection, regardless of the medium in which they are located, and enable other necessary actions to establish all relevant facts in the process. The Competition Council, through the analysis of received and collected data and the analysis of the relevant market in terms of Article 17 of the Act, assesses whether there are legal and other obstacles to the entry of other economic entities into the relevant market and whether the entry of new participants into the relevant market requires high technological or financial investments.
The founder of this Law Office was an active participant in the process of notifying the concentration before the Competition Council of Bosnia and Herzegovina, which, based on Article 52, paragraph (1) point e), Article 42, paragraph (1) point d), in connection with Article 12, 14, 16, 18 of the Competition Act (Official Gazette of BiH, No. 480/5, 76/07, 180/09), resolving the Notification of the concentration of the economic entity, issued Decision No. 03-26-1-0-81-11/15 of February 16th, 2016, by which the concentration that arises in the relevant market of production and sale on the territory of Sarajevo, Central Bosnia, and Zenica-Doboj Canton is considered permissible, by which the economic entity intends to gain control over parts of the economic entity by purchasing its three business units.
It was also established that there is competition in the relevant market with a respectable market share with a tendency of slow growth, and that the implementation of the concentration in question will not lead to the exclusion of competition or significant weakening of the functioning of free market competition on the relevant market, for reasons, especially that the applicant will technologically raise the level of production of the relevant product both in qualitative, technological terms, and in quantitative terms, which necessarily leads to the benefit of users of the relevant product, both in terms of price and in terms of encouraging so-called technological competition.
If you need legal advice in Sarajevo on the topic of Notification of Concentration of Economic Entity – Permissibility of Concentration based on Notification of Economic Entity in Bosnia and Herzegovina, as an individual, or if you need a corporate lawyer for your company or business idea, you are in the right place with us. You can contact our Corporate lawyers directly by phone (+387 62 342 463), WhatsApp, Viber, or email (rasid@haracic.ba).
