In 2006 14 Belgrade taxi associations decided to implement a restrictive agreement which introduced a price-fixing regime in relation to their respective taxi services. In 2007 the Competition Commission prohibited the agreement, but the Administrative Court subsequently annulled that decision on procedural grounds. Both these decisions were made in consideration of the provisions of the 2005 version of the Law on the Protection of Competition.
On April 20 2011 the commission blocked the application of the price-fixing regime and prohibited further conduct which could result in distortion of competition on the basis of the restrictive agreement. In response, the taxi associations issued a joint statement in which they agreed to terminate various discounts which were being offered to customers, including discounts of between 20% and 30% for journeys booked over the telephone. Nevertheless, in light of the commission's recent practice, the parties are expected to be fined up to 10% of their total turnovers, based on the provisions of the new Law on the Protection of Competition, which took effect in November 2009.
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]).
October 6 2011