Application of Economic Analysis in Interpreting Certain Provisions of the Law on Protection of Competition of the Republic of Serbia

Abstract

 Introduction: The paper analyzes key institutes of Serbian competition law, including abuse of dominant position, restrictive agreements, and concentrations of market participants, with a focus on the legal framework and economic effects.

 Aim: The aim of the paper is to present the mechanisms of competition protection in Serbia, identify forms of competition violations, and assess their impact on market efficiency and consumers.

 Materials and Methods: The analysis is based on the Law on Protection of Competition, relevant decisions of the Commission for the Protection of Competition, case law, and law-and-economics literature. Normative-analytical, comparative, and law-and-economics approaches were applied, along with case studies and theoretical analysis of market effects.

 Results: The paper demonstrates that restrictive agreements, such as price-fixing or market-sharing arrangements, limit market dynamics and innovation. Abuse of dominant position can lead to exclusionary and exploitative effects, restricting competition and raising prices. Control of concentrations allows the Commission to prevent the emergence of dominant entities or 
coordinated effects that undermine competition. At the same time, concentrations can sometimes produce economic benefits, such as economies of scale and increased production efficiency.

 Conclusion: Effective application of competition law requires a balance between prohibiting violations and promoting market efficiency. The combination of legal and economic analyses enables a better understanding of the effects of competition violations and contributes to the preservation of a healthy market environment.