GAP Institute presented its latest policy brief entitled “Homologation Monopoly"

03/05/2016

Today GAP Institute has published the analysis on Homologation Monopoly. The analysis was presented by Agron Demi and Jeton Mehmeti. Agron Demi, Executive Director at GAP, said that last year’s decision of the Government to eliminate all actions that limit free competition, is not being implemented. The monopoly of imported vehicle homologation is still in place since 2009 when the former Ministry of Transportation and Post-telecommunication had signed an agreement for exclusive operation for a ten-year period with Eurolabi Company for vehicle homologation. According to Demi, by reaching an agreement without bidding procedures, and by giving exclusive rights for homologation to a single company, MTPT has committed a violation of constitutional principles, more specifically of article 119, paragraph 3, according to which the actions that limit free competition through setting or abusing a dominant position are prohibited. Moreover, this agreement was signed in violation of the Law on competition and the Law for public procurement which requires an open and transparent process when contracting services or issuing licenses by public institutions.

On the other hand, Jeton Mehmeti, Research Director at GAP Institute, said that Kosovo is the only place in the region that has placed a monopoly on vehicle homologation and that the price of homologation in Kosovo, 100 euro, is significantly greater than that of other countries in the region and even EU. Comparing the price of homologation in Kosovo with that in the regional and EU countries, it results that Kosovars from 2009 to 2015 have paid 2.4 million euro more than they would spent if there was no monopoly and if the price would be similar to that of the regional countries.

Through this analysis, GAP Institute has recommended that the case should be taken to the prosecution to be investigated since this contract has been signed in violation of the Constitution and existing legislation. At the same time, Kosovo Competition Authority should interpret the monopoly of homologation, considering the earlier interpretation regarding cash registers. GAP recommends that Eurolabi should not have the rights to supervise other centers for technical control due to conflict of interest and in addition to that, their licensing and inspection is made by the Ministry of Infrastructure. Moreover, the Administrative Instruction nr.2008/08 for vehicle homologation should be changes as soon as possible, and the changes in this legal act should foresee licensing of more than one homologation subject and to remove the article 8.6 which requires that the first technical control be conducted by the homologation company, because this is in violation of the Law on protecting the competition and the right of the consumer to choose. 

To read the full analysis click HERE