Experts: Telekom Srbija – Telenor anti-SBB merger violates free competition

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The Commission for Protection of Competition confirmed to N1 that both Telekom Srbija and Telenor addressed it about their merger, saying it couldn't offer more information on the issue, or about its work on it, or deadlines for a decision.

Experts told N1 the agreement between the two companies was an example of violating the rules of free competition. Its essence is controlling the media market and destroying independent media.

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A part of Telecom and Telenor plan clearly shows why the contract is being agreed: „Cooperation with Telenor has great benefits in increasing revenues, users and the final breaking of SBB, and we propose that such an agreement be adopted.“

The final break, according to Telekom’s plan, is to reduce SBB’s market share below 30 percent.

N1 addressed the Commission for Protection of Competition about the issue, and it only said that in this case, it was not a matter of merging two market participants, but an exemption from the ban on agreements on limited and defined business cooperation in a specific business segment.

„Having in mind that this is a specific market for the development and functioning of which the sectoral regulatory bodies are also competent, the Commission will, as before, act in cooperation with them on this request for individual exemption,“ the Commission told N1.

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The Commission could declare itself incompetent in the case. Still, Miladin Kovacevic, foreign investments consultant, said it should not do that.

„The Commission should already have announced what it would do and analyse the agreement and determine the violation of the rules of free competition even ex officio.“