"Cartel agreement", in Pristina and Gjakova the price of bread was increased in coordination between bakeries - investigation begins

The Competition Authority says that after inspections in several bakeries in Pristina and Gjakova, they have concluded that the increase in the price of bread was done by agreement and coordination. In addition to formal investigations, the Competition Authority is analyzing the possibility of a temporary measure that implies the closure of the economic operator for up to 6 months against violators of the Law on the Protection of Competition (prohibited agreements - cartels).

Kosovo is a democratic state and the economy functions on the principle of a free market.

But this does not mean that the economy is anarchy and everyone does whatever they want with prices and sales.

The state cannot decide how much a product costs, but it acts when bread merchants, for example, in a city, decide that the price for a loaf of bread from 50 cents becomes 60 cents. An example of this was Gjakova, two weeks ago.

This was found after inspections in two cities, and this was confirmed to TV Dukagjini by the Competition Authority.

“Following the inspections conducted, the Authority has identified violations of Article 5 of Law No. 08/L-056 on the Protection of Competition (prohibited agreements - cartels) by entities in the bread sector in the Municipality of Gjakova and that of Prishtina. These violations are related to the coordination of prices between bakers for different products, which constitutes a legal violation for such coordination in the market.”

For these cases, procedural steps are being taken to initiate formal investigations, in accordance with the law.

The Competition Authority says it is analyzing the possibility of imposing interim measures under the Law on Protection of Competition. Interim measures mean the closure of the economic operator for up to 6 months.

Under the scrutiny of the AKM are over 20 food products, including in the gastronomy sector.

"...There is a monitoring of the coffee product, we also have a concern about coffee, in the gastronomy sector, with special emphasis on the increase in the price of coffee, it is under observation by the authority. The authority's inspectors are now in the field every day and are conducting interviews in different cities and collecting data from enterprises on the reasons for the increase in these prices," stated Adrian Mustafa - Acting Head of the Department of Analysis and Methodology.

The main justification given by bakers and gastronomes for the increase in the price of bread and coffee is the increase in the price of electricity. However, the prices have increased several weeks before KEDS starts billing with new tariffs. /Dukagjini/