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New changes to fight competition distortion

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TIRANA, Jan. 19 – The Competition Authority has made some changes to its operating regulation obliging the Secretariat to launch preliminary investigation when receiving complaints on limited competition or abuse of dominant position. Under the new changes approved last month, the Secretariat has to inform the Competition Commission even when it doubts on competition distortion and ask for its approval to carry out a preliminary investigation on allegations.
Meanwhile, another change has been made to the regulation on the “implementation of the concentration procedures for enterprises,” under which, the Commission can decide to launch a thorough investigation when identifying that the concentration in case displays clear signs of competition distortion especially because of strengthening of the company’s dominant position.

EC report

Albania’s legal framework for competition is largely based on EU rules and the necessary legal and administrative structures are in place, said the latest European Commission report. However, sufficient safeguards need to be put in place to guarantee the operational independence and administrative capacity of the Competition and State aid authorities so that they can enforce the legislation efficiently. The actual independence of sectoral regulators needs to be demonstrated. Further monitoring and analysis of Albania’s progress towards market liberalisation in reserved sectors in line with the acquis will be required.
Overall, Albania will have to undertake additional efforts to align with the acquis and implement it effectively in the medium term.

Public procurement

The Competition Authority has recently suggested that the public procurement law must be amended in order to prevent possible prohibited agreements among companies participating in tenders to provide public services. In some recommendations sent to the Public Procurement Agency, government and Parliament, the Competition suggests that article 13 of the law approved in November 2006, which foresees a 1 to 3 year-ban in procurement procedures for economic operators, should be amended by adding ‘for the cases when under a decision by the Competition Commission, the existence of an agreement in bids among economic operators participating in procurement procedures has been discovered.”
The Authority also recommends that the legal framework should foresee that Contracting Authorities must notify the Competition Authority in cases they identify signs of prohibited agreement in public procurement procedures.
The Public Procurement Agency has also been recommended to draft guidelines on the fighting and discovering secret deals.
According to the Competition Authority, these kinds of public procurement agreements which are banned in all OECD countries, affect taxpayers, lower public confidence in a competitive process and benefits from a competitive market.
The decision came after the Competition Authority identified some abuses in some investigations carried out into the public procurement of new cars.
The changes are first of all aimed at raising awareness among companies to prevent prohibited agreements in public procurements and clarify the officials’ role in case of identifying abuse case.

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