MONTENEGRO Trends and Developments Contributed by: Bisera Andrijasevic, BDK Advokati
Conditional Approvals of Concentrations The Agency has not prohibited any concentra - tions, while the vast majority of approved con - centrations are cleared through summary pro - ceedings. However, a small number of cases have involved conditional approvals – typically when transactions result in high market shares in overlapping markets in Montenegro. In these instances, the Agency has accepted behavioural commitments to address potential competition concerns. These commitments have targeted transactions where either the acquirer or the target, or both, are local entities. In practice, the Agency typically imposes soft behavioural measures, such as reporting obli - gations. These obligations often include notify - ing the Agency of changes in processes, com - mercial conditions, concluded contracts, and offers. Additionally, the parties may be required to conclude contracts with specific suppliers or customers and adhere to certain commercial practices. These measures aim to ensure that competition in the market remains undistorted, while allowing the transaction to proceed. While these measures are less intrusive than structural remedies, their effectiveness depends on rigorous monitoring and compliance. The Agency’s reliance on behavioural commitments reflects its focus on preserving market dynam - ics and preventing anticompetitive outcomes without imposing undue restrictions on business operations. Most approved concentrations have concerned the telecommunications and media sectors, fol - lowed by the automotive industry and the mar- kets for banking and insurance services. In 2024, the Agency has in general looked more closely into the retail market, which in Montenegro is characterised by high margins and resulting
the Misdemeanours Act, last for over a year, and fines imposed are often at the lower end of the prescribed range, or even below the legal mini - mum, reflecting mitigating circumstances. On one hand, decisions of the Misdemeanour Courts can be appealed to higher misdemean - our courts. The final legal remedy is a constitu - tional complaint which can be filed before the Constitutional Court of Montenegro. On the other hand, merger control decisions issued by the Agency can be challenged before the Admin - istrative Court of Montenegro. While the Compe - tition Act does not explicitly define the catego - ries of individuals or entities eligible to appeal such decisions, the right to appeal is governed by the Administrative Disputes Act. In addition to the right to appeal of the parties to the pro - ceedings, the Supreme Court of Montenegro has confirmed the legal standing of competitors as third parties to challenge merger decisions approving the concentration. Decisions of the Administrative Court may be further challenged before the Supreme Court of Montenegro in a third instance. This multi-tiered process has been criticised for its inefficiency and the burden that it places on businesses and executives. Executive directors of fined entities are automatically subject to pen - alties, even in cases where the local entity had no knowledge of the transaction. The amended Competition Act will confer on the Agency the authority to impose fines direct - ly for competition law infringements, streamlin - ing enforcement. Moreover, the introduction of direct fining powers should enhance the Agen - cy’s deterrence capabilities, reducing reliance on prolonged and often unpredictable misdemean - our proceedings.
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