Information and communication technologies product market and protection of competition in the Republic of Serbia

Abstract

Starting from the fact that the importance of information and communication technologies (ICT) for the development of a national economy is high, it has been examined how this sector and the situation in individual markets in the sector affect competition policy. All the most important markets of the ICT sector of Serbia are characterized by a high level of concentration measured using the Herfindahl-Hirschman Index (HHI) with a tendency of decrease. In such circumstances, there are three directions of changing approach to competition policy: (1) changing the angle of observation and estimation of the relevant market boundaries; (2) balancing between good and bad parties related to joining in research and development (R&D), and (3) a more attentive attitude towards patents and licenses, as a basis for the protection of intellectual property, but also barriers to entry into new market. What is required of contemporary competition policy is a dichotomous view of the boundaries of relevant product market. One which is focused on the services of one market from the ICT sector and the second one focused on integral observation of linked services from the ICT sector. Moreover, national competition bodies are required to mutually cooperate at a higher level through the formalization of the information exchange protocol. In the segment related to cooperation in the field of research and development and affirmation of intellectual property protection, through patents and licenses, special attention is required from competition policy so as not to impair the welfare of these institutions, while at the same time preventing uncompetitive behavior.

Concentration of supply on the chosen markets of Serbian electronic communications sector

“…To assess future responses competition policy, Stojanović and Kostić (2018) analysed the level of concentration in selected markets of electronic communications services of the Republic of Serbia using the Herfindahl-Hirschman Index from 2007 to 2016. They concluded that the concentration level is extremely high but with a declining trend.…”