On June 3 2011 the Administrative Court confirmed a decision of the Commission for the Protection of Competition decision in the Danube Foods Group case to fine two milk and dairy product producers – Mlekara ad and Imlek ad (which are both controlled by Danube Foods Group) – 1.92% of their respective turnovers (approximately €3 million).
The original fine decision was the subject of much debate in the public sphere and among experts. The commission carried out the fine procedure based on the provisions of the existing Competition Act (in place since November 1 2009), but it established the infringement based on the previous act. This was viewed by the public and experts alike as a retroactive application of law.
Although the Administrative Court decision has not yet been published, the court has reportedly confirmed the commission's reasoning, finding that the principle prohibiting the retroactive application of the law had not been violated. The court explained that the initial decision and the fine decision were parts of a single procedure which was initiated under the previous Competition Act, but brought to an end under the existing act.
For further information on this topic please contact Srdjana Petronijević at Moravcevic Vojnovic Zdravkovic in cooperation with Schoenherr by telephone (+381 11 320 26 00), fax (+381 11 320 26 10) or email ([email protected]).
June 23 2011