Competition Law at Kosovo
Kosovo has significantly updated its competition law framework with the enactment of Law No. 08/L-056 on the Protection of Competition, which entered into force on June 22, 2022. This new legislation aligns Kosovo’s competition rules more closely with European Union standards and enhances the operational capacity of the Kosovo Competition Authority (KCA)
Key Features of Kosovo’s Competition Law
1. Alignment with EU Standards
The new law harmonizes Kosovo’s competition regulations with EU legislation, including:
Council Regulation (EC) No. 1/2003 on the implementation of competition rules
Council Regulation (EC) No. 139/2004 on the control of concentrations between undertakings
Commission Regulation (EU) No. 330/2010 on vertical agreements
Commission Regulation (EC) No. 802/2004 implementing merger control
2. Prohibited Practices
The law prohibits:
Anti-competitive agreements, including cartels and collusion
Abuse of dominant position, defined as a market share of 40% or more
Mergers and acquisitions that significantly impede competition
3. Exemptions and De Minimis Rules
Certain agreements may be exempt from prohibition if they:
Contribute to improving production or distribution
Do not eliminate competition in the relevant market
The law also introduces de minimis thresholds, exempting agreements with minimal market impact:
Horizontal agreements: common market share under 10%
Vertical agreements: common market share under 15%
Mixed agreements: common market share under 10%
Other agreements: individual market share under 5%
4. Merger Control
The law establishes thresholds for mandatory notification of concentrations:
A combined turnover exceeding EUR 20 million globally, with at least one participant having a turnover over EUR 1 million in Kosovo
At least two participants with a turnover over EUR 3 million in Kosovo
The merger control fee has been set at EUR 6,000, payable in advance .
A leniency program allows companies involved in cartels to receive reduced fines if they:
Cease their involvement in the cartel
Cooperate fully with the KCA
Provide detailed information about the cartel
The program aims to encourage self-reporting and dismantling of anti-competitive practices .
6. Enforcement and Powers of the KCA
The KCA has been granted enhanced powers, including:
Issuing binding opinions on government decisions
Conducting investigations and imposing fines
Implementing dawn raids
Issuing civil damages actions
Despite these powers, as of April 2024, the KCA had issued 27 decisions but had not yet conducted any dawn raids or utilized the leniency program .
Recent Developments
Regulatory Updates: In 2023, Kosovo introduced new regulations, including the Administrative Instruction No. 01/2023 for determining the relevant market and the Administrative Instruction No. 02/2023 for merger control procedures .
Institutional Strengthening: In 2024, the KCA recruited a new General Director, Legal Officer, and five competition inspectors to enhance its capacity .
Summary
Kosovo's updated competition law framework represents a significant step towards aligning with EU standards and enhancing market fairness. While the KCA has been granted substantial powers, the practical application of these powers is still developing, with ongoing efforts to strengthen institutional capacity and enforcement mechanisms.
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