Member Article

The Macedonian Competition Commission imposed a EUR 5.8 million fine on PIVARA SKOPJE AD and EUR 2.7 million on PRILEPSKA PIVARNICA AD, for allegedly entering into restrictive agreements with their distributors. According to the Commission, PIVARA SKOPJE AD entered into sales and distribution agreements which contain resale price maintenance provisions, limiting the distributors to freely set their resale price. In addition to this, the Commission found that the business cooperation agreements, between PRILEPSKA PIVARNICA AD and its authorised distributors, also contain restrictive non-compete obligations for an indefinite term.

According to the Competition Law, the Commission can sanction the companies involved in restrictive agreements, with fines that can amount up to 10% of the turnover of the entity in breach, realised during the last business year. Also, agreements which have as their object or effect the distortion of competition are null and void. According to publicly available information, it seems that the Commission imposed maximal fines, amounting to approx. 10% of the companies'' total 2016 revenues.

By further strengthening its legislative framework through the adoption of the Guidelines on Vertical Restraints, at the very end of 2015, and now by imposing the highest antitrust fines so far, the Commission is sending a clear message that it will continue to closely monitor company activities on various markets, and work more vigorously towards the prevention and sanctioning of competition infringements in Macedonia.