Competition Law at Bosnia and Herzegovina
Competition law in Bosnia and Herzegovina is designed to promote fair competition, prevent market abuse, and align with European Union standards as part of the country’s EU accession process. Here's a summary of the key features:
Legal Framework
Law on Competition (Zakon o konkurenciji): The primary legislation governing competition in Bosnia and Herzegovina, enacted in 2005 and amended in 2009.
Implemented by:
Competition Council of Bosnia and Herzegovina (Vijeće za zaštitu konkurencije BiH), an independent body responsible for enforcement.
Main Areas Covered
Anti-competitive Agreements
Prohibits agreements between undertakings that prevent, restrict, or distort competition (e.g., price fixing, market sharing).
Both horizontal (between competitors) and vertical (supplier/distributor) agreements are regulated.
Abuse of Dominant Position
Prevents companies from abusing a dominant market position (e.g., imposing unfair prices, limiting production, refusing to deal).
Merger Control
Requires prior notification and approval of mergers and acquisitions that meet certain thresholds to prevent market concentration that may reduce competition.
State Aid Control
Monitors and regulates state aid to ensure it does not distort competition within the internal market.
Procedures and Penalties
Investigations can be initiated by the Competition Council or upon complaint.
Penalties include fines up to 10% of the total annual turnover of the undertaking.
The Council can also order the cessation of illegal practices and impose corrective measures.
EU Alignment
Bosnia and Herzegovina's competition law is broadly aligned with EU competition law, particularly with Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU).
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