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News/ Frikom in the Commission’s Crosshairs
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06/06/2017
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​On the 29th of May 2017, the Serbian Competition Commission initiated ex officio proceedings against the Industry of frozen foods Frikom d.o.o. Beograd ("Frikom"), the largest producer of ice-cream in Serbia. This was done in order to establish whether the company abused its dominant position on the market of the distribution and sale of ice creams.

The Commission allegedly has clear indications that Frikom was granting additional rebates and/or monetary payments to its customers which are at the same time the customers of competing ice-cream producers/distributors. Supposedly, this was done with the aim of incentivising the customers to cease further cooperation with Frikom's competitors. According to the Commission, such behaviour is likely to result in both the elimination of existing and the prevention of new competitors, by way of which Frikom might have abused its dominant position on the market of distribution and sale of ice creams.

The day following the initiation of proceedings, the Serbian Competition Commission carried out a dawn raid at Frikom's business premises. It seems that there is no doubt anymore that the dawn raids are quickly becoming a popular tool of the Serbian Commission.

Frikom was already found by the Commission to be a dominant undertaking on the market of the production and sale of ice-cream back in 2012. That ended in a fine levied upon Frikom for the abuse of its dominant position.

Since the proceedings against Frikom have just been initiated, the Commission invited third parties to provide further evidence which could be important in order to determine the substantial facts in this proceedings.

 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

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