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European union – albania stabilisation and association committee 11 March 2015 table of contents political criteria 3


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6.4 INTERNAL MARKET AND COMPETITION




Follow-up of the 2014 Progress Report and April 2014 and March 2015 Subcommittee meetings with focus on


Referring to the Agenda of SBC IMC 2015:
Point 3. On Competition area, in implementation of Article 71 of the SAA, has continued the alignment of the legislation. During the reporting period are approved by the Competition Commission: Decision no. 322, 03.07.2014 for approval of the Regulation “On some categories of agreements, decisions and concerted practices in the shipping transport of goods20” and monitoring and Decision no. 332, 10.09.2014, for approval of the Guideline "On the applicability of Article 8 and 9 of Law 9121, 23.07.2003 “On Competition Protection”21.
The Competition Authority is committed to review the National Competition Policy Document during 2015. This is a process that has started and is expected to be finalized within the first 6 months of 2015.
Since last Sub-Committee "Internal Market and Competition, including Consumer Protection and Health” of 2014, the Competition Commission has issued 34 decisions: 7 Decisions on concentration authorization; 2 Decisions on the approval of legal acts; 5 Decisions on recommendations,1 Decisions on conditions and obligations; 2 Decisions on fines, 1 Decisions on individual exception of the agreements, 16 Other decisions (the opening of preliminary and in-depth investigations, extension of the deadlines, amendment of the decisions etc).

During the year 2014 the Competition Authority investigated several markets based on recently public concerns mainly related to prices and other issues for: insurance market, fuel market, the market of international marine transport for travelers and vehicles, energy market, Tobacco market, the market of public procurement (the market of security service in the Dibra district, the assessment of the complaint in the market of the service of the physical security in Tirana District), Public procurement market for road construction, mobile phone market, production and wholesale market of eggs. In total during 2014, 38 complaints have been submitted at the premises of the Competition Authority. In the first months of 2015 are submitted to the Competition Authority 10 complaints, of which 8 of them dealing with telecommunications market.


As above mentioned the Competition Commission (CC) in relation to insurance market sector has delivered Decision Nr.325, dated 30.07.2014 "On some recommendations to the Financial Supervisory Authority to promote competition in the market of compulsory third party liability insurance". By this decision is recommended to the Albanian Financial Supervision Authority (AFSA), regulatory measures for the establishment of compulsory third party liability insurance in terms of ensuring the efficient functioning of competition between insurance undertakings. As regards fuel market the CC through Decision No. 315, of 13.05.2014 decided to open the procedures of in-depth investigation on the import, production, wholesale and retail market of fuel. In following in December 2014, the Competition Commission held hearings with the parties under investigation – a decision it’s expected to be taken by the CC. As well the Competition Commission, by Decision No. 316, of 23/05/2014 decided to open the procedures of preliminary investigation on international marine transport for travelers and vehicles, based in the characteristics of the relevant market and in the behavior of market operators. The draft-decision with measures and possible recommendations on this area, is sent for opinions to the Ministry of Transport and Infrastructure. Following the investigative procedures in the energy market, upon the Decision of CC, no. 326, 08.09.2014, the Competition Commission by Decision No. 334, 31.10.2014, has decided “On some recommendations on competition growth in the market of energy procurement for the coverage of the loose in the distribution network”. On tobacco market the Competition Commission, based on the price rise in this has conducted the necessary investigative procedures. By decision No. 314, of 08/05/2014, the CC decided to close the procedures of preliminary investigation on the import, production, wholesale and retail market of tobacco, because there are no signs of restriction of the competition.
However, the Competition Commission decided that the market of manufacturing, import, wholesale and retail of tobacco to be continuously under the monitoring process by the Secretariat of the CC. On market of public procurement, the Competition Authority performed all necessary investigations during 2014. After investigative procedures, inspections, data collection and processing of the information, the Competition Commission by Decision No. 317, 23/05/2014 decided to close the procedures of preliminary investigation on procurement of security service market at the district of Dibra, because there are no signs of restriction of the competition.

As regards the Mobile phone market, in 2014 it has been under continuous evaluation by the Competition Authority (CA), based in numerous complaints filed at CA office. For this reason, the Competition Commission by Decision No. 336, of 11.11.2014, decided "For the opening of the preliminary investigation procedure in the mobile phone market to Vodafone Company JSC, to assess whether there are signs of restraining competition. The investigative procedures, collection and the processing of the information are ongoing, and it is foreseen to be concluded within end February beginning of March 2015. Meantime in Market production and wholesale of eggs after an immediate increase of 30% of the selling price f eggs, the Competition Commission with Decision No. 344, of 02.02.2015 has decided to open the preliminary investigation procedure in market of production and wholesale of eggs. Shortly after the release of the decision, surprise inspections were conducted and necessary information is being collected, which will be processed for the report of this investigation.


During 2014, there has been a growth in the number of notifications of concentrations to the Competition Authority. This change comes as a result of lower turnover threshold for the undertakings that are under a legal obligation to obtain authorization of the Competition Commission. Also, the collaboration with NRC has contributed in informing parties when to notify a concentration.
As regards Legal Proceedings, due to the entry into force and implementation of Law No. 49/2012, of 03.05.2012, "On the organization and functioning of administrative courts and administrative disputes", issues on which the Authority has been litigant, are judged by the Administrative Court of First Instance of Tirana. Also the issues that were being tried before the civil courts, were passed to jurisdiction of the Administrative Court of First Instance of Tirana. During 2014 were held 26 cases, of which 16 remain for consideration in 2015, and 10 of those examined in 2014, resulting temporarily: 5-offs, four earned, and 1 sent for review to the Administrative Court. 
Regarding, institutional and administrative capacities, of the Albanian Competition Authority (ACA), a new inspector has joined the staff of the Competition Authority, in the Market Surveillance Directorate, and a new position for one legal inspector it is expected to be approved within 2015. During 2014, the representatives of the Competition Authority staff participated in several workshops financed by TAIEX, OECD (RCC Competition Regional Centre in Budapest), or IPA twining project.
On State Aid (3.2), during April 2014- February 2015, the State Aid Commission (SAC) approved the annual state aid report and 8 new state aid schemes consisting of state aid for creative economy fund, state aid scheme for disabled workers, state aid scheme for start-up fund, state aid scheme for woman entrepreneurs, state aid authorization on the implementation of Trans Adriatic Pipeline Project (TAP project), state aid authorization for the creation of “economic area” with the status of “Free zone” in Spitalle, Durrës, state aid scheme in financing the stadium of Elbasan and Tirana Olympic Park, state aid existing scheme in the sport sector).
There were 3 ex-officio cases:

  • The State Aid Commission decision No. 52, dated 1.10.2014 “On the state aid scheme “The Decision of Municipality Council of Tirana No. 20, dated 09.04. 2013 “On the implementation of the program of economic development and employment” “Guarantee fund scheme” and the eligibility criteria and procedures for the selection of commercial bank”. The state guarantee scheme was unlawfully put into effect by Municipality of Tirana.

  • The measure on the issue of state guarantee for capital borrowings by KESH sha. This measure doesn’t involve state aid.

  • State aid scheme in financing the stadium of Elbasan and Tirana Olympic Park.


As regards the implementation of adopted legislation, the State Aid Control Sector prepared the annual report on state aid for the year 2013, based on state aid data from aid providers.
This report was approved by Council of Ministers decision no.365, date 11.06.2014.
On State aid awareness, several workshops are organised in central and local state authorities to increase awareness on state aid policy and State Aid law, aiming civil servants and policy makers responsible for policy formulation, implementation and enforcement of economic programmes. Also during the reporting period are provided opinions for state aid implications in the framework of tourism draft law on, postal law, and law for the promotion of social entrepreneurship.
Based at Prime Minister Order, during 2014 – 2015 there is established an inter-ministerial working group with representatives of line ministries as state aid grantors. The implementation of this order will improve and strengthen the control of state aids in Albania and also will create a very good platform for an effective monitoring and reporting of all state aid measures. It is foreseen that the inter-ministerial working group will held the 1st meeting following the completion of all names of representatives by each ministry.
As regards EU support, in October 2014, two EU experts through TAIEX assistance provided guidance to the State Aid Control Sector to further establish and enhance an effective working partnership with line ministries for state aid notifications procedures.
On the drafting of new State Aid law, in November 2014, a TAIEX expert mission provided support in the harmonization of the Albanian state aid legislation with the EU acquis. The State Aid Control Sector is working in the preparation and finalization of the draft of new state aid law.
On liberalisation (point 3.3), during 2014, in focus of the activity of the Competition Authority have been a number of exclusive and special rights granted in Albania. Evaluation of concession agreements is based on Law No. 9121, of 28.07.2003 "On Protection of Competition" (as amended), Article 2 determines that this law applies to public and private enterprises which have been awarded by state exclusive rights or special rights. Also, this assessment was completed in implementing the Resolution of the Parliament "For evaluation of the Competition Authority for 2013" in which were mentioned some concession arrangement in the spotlight of the Authority for 2014. The Competition Authority conducted ex-post evaluation of these special and exclusive rights granted by different institutions in Albania, taking into account the protection and preservation of the principles of free and effective competition. From the review and evaluation of all concession contracts, has resulted that during the procedure of granting concessions it has been not respected the obligation of Article 2 / 1c and 69/1 / b of Law no. 9121/2003 "On Protection of Competition" as institutions responsible in any case have not fulfilled the obligation to request for Authority's assessment during the procedure of granting exclusive rights. The Competition Commission through its decisions gave recommendations: regarding the operation of the service of vehicle technical inspection market - to the Ministry of Transport and Infrastructure; concerning the concession contract for the financing, building and operation of container and other vehicles scanning service in the Republic of Albania and the fee to scan", to the Ministry of Finance and the Council of Ministers; concerning the concession contract for the design, financing, production and setting up a system for broadcasting, distribution, locating and monitoring of fiscal postage stamps of drug control "- to the Ministry of Finance and Ministry of Economic Development, Trade and Enterprise. As well, the Competition Authority has completed the evaluation of the concession contract for the management, operation and maintenance of the eastern terminal of the Port of Durres; and has estimated the License Agreement for the National Lottery between the Ministry of Finance Authority and Lotterien Oesterreichische society. Meanwhile in the evaluation process is the Concession Agreement for the service contract of marking and monitoring of fuel between Ministry of Finance of the Republic of Albania and a temporary union of companies "Global Fluids International" and Petroleum Consulting Partners "A.G.
On State monopolies, as follows is provided information for air transport, road safety, water and sanitation and electricity area.

As regards air transport, the Mother Teresa International Airport concession is administered by the society "Tirana International Airport", for a period of 20 years (2004-2024), from the entry into force of the Law 9312, dated 11.11.2004, "Airport Concession Agreement".
Obligations of the concessionary are defined in the Law 9312/2004, points 4.2, 4.3 and 4.4. In the field of air transport, these functions are completely separated.
On road safety: the vehicle inspection in Albania is done by the concessionaire company SGS. This concession is a contractual agreement between Ministry of Transport and “ SGS Society “, based on Counsel Decision Nr. 643, date, 3.10.2007 “On assigning the authority for granting concession the obligatory vehicle inspection for 10 year period ( 2009-2019 )”.
The operator has the exclusivity for this activity.
On Water and Sanitation, given the fact that the drinking water is the most essential element for life and water supply and sanitation, are the services of a special nature "Monopoly", where the public does not have a choice. The principle of all e policies and sector strategies is to provide quality services, with low costs and right affordable tariffs for the citizens.
Management of water supply services, sewerage and wastewater treatment is the duty of WSS companies, which conduct their activities according to the law of commercial companies; Local governments being the owners of the shares of these companies, have responsibility to manage WSS companies and to provide quality service to their communities.
On electricity, the Ministry of Energy and Industry is undertaking a series of measures to liberalise the electricity market, in line with the SAA, the Treaty Establishing the Energy Community and all other commitments. Delays and difficulties came as a result of the status of the CEZ Distribution Company where 76% of shares was owned by CEZ A.S. Problematic relations with CEZ blocked reforms in the power sector, its liberalization, and put the entire power system into a technical and financial collapse. This status was eventually clarified by the Parliament on 31 July 2014, which transferred 100% of shares to the Albanian Government.
On 14 January 2015 the Council of Ministers approved the Power Sector Law. By February 2015 is expected its adoption by Parliament. This draft law and its forthcoming implementing legislation will aim at further liberalisation of the electricity market. Currently, around 10-12% of the retail market in Albania is liberalised, mainly supply to big consumers who are connected to over 110 kV network, or which consume over 50 million kWh of electricity per year. Likewise, the wholesale market is completely liberalised with a big number of operative active in the market. It is anticipated that supply to consumers connected to the 35 kV network be liberalised in the near future, to be followed by the supply to consumers connected to 20, 10 and 6 kV. About 40% of the electricity market is expected to be liberalised by 2018.
The energy sector is being liberalised progressively, with the privatisation or entry into production of HPPs under concession. Allocation of interconnection capacity with neighbouring countries is fully liberalised. Hence, KESH and OSHEE are stripped of their privilege to reserved capacities; now, they must enter a bid on equal terms for capacity allocation. In following is expected that these procedures to foster competition, reduce prices and guarantee security of supply to consumers.
Point 4. On Consumer and Health Protection, in framework of further alignment of the Albanian legislation with the EU acquis, the Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts, is approximated by DCM no. 652, dated 8.10.2014 “To determine the rules in respect of timeshares and long-term holiday products as well as exchange contracts”. The draft Intersectorial Strategy “On consumer protection and market surveillance (CPMS) 2014-2020” is finalized and is sent for approval to Council of Ministers since July 2014,
The Consumer Protection Commission based in Prime Minister Order no. 169, dated 27.5.2014 “On nomination of the chairman and the members of Consumer Protection Commission” is functioning. During this period the Commission has held 6 meetings with focus on enforcement of consumer protection legislation.
As regards Consumer education and information, in April 2014, a social web page (FB) was created in order to contribute continuously in improvement of Albanian consumers’ information and awareness regarding their rights. Also, in the web page of MEDTE a new rubric “Consumer protection” is available. As well consumers can download a complaint form or submit complains. On September an awareness campaign with the slogan "Use your rights" is started. Till end February beginning of March 2015, a closing meeting on awareness campaign "Use your rights" is preparing to be held.
On Consumer Protection - Information prepared based on the conclusion of the Subcommittee of April 2014.

  • Albania will maintain its efforts to pursue a full alignment with the EU acquis on Consumer Protection, paying particular attention to those parts of the acquis that have recently been or are currently under revision, as in the case of cosmetics and medical devices.

In framework of further alignment with the EU acquis, in consumer protection area is approved the DCM no. 652, 8.10.2014 “To determine the rules in respect of timeshares and long-term holiday products as well as exchange contracts”. The sub-legal act transposes Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts.

  • Albania will adopt the strategy on consumer protection by July 2014. The necessary budget for its implementation has to be allocated.

The drafting process of Intersectorial Strategy “On consumer protection and market surveillance (CPMS) 2014-2020” has been finalized and the respective draft was sent for approval to the Council of Ministers since July 2014.

  • Albania is encouraged to continue strengthening administrative capacity, financial recourses and training of the Consumer Protection Unit (CPU) in the MoEDTE and of the Consumer Protection Commission (CPC), whose independence has to be safeguarded.

Regarding enforcement of consumer protection legislation the Commission has held 6 meetings and 5 decisions were taken, mainly dealing with:

  • assessment of consumers standard contracts for electric energy and water services, aimed to find the unfair contract terms;

  • assessment of commercial practices on second level banks on consumer credit;

  • consumer complaints regarding lack of transparency on consumer information in one exchange office.

  • Albanian authorities will improve their efforts to empower consumers through information and awareness-raising activities, as well as consumer education

On September 2014 an awareness campaign with the slogan "Use your rights" is launched. This campaign aims to encourage consumers to know and to learn more about their rights, in order to exercise them. The main activities of the campaign consisted in:

  • The questionnaire on consumer rights is completed. The questioner form was prepared and distributed in collaboration with consumer associations and some municipalities and were fulfilled from consumers in some cities of the country. The data collected from the questionnaire were processed during December 2014.

  • The presentation about consumer rights was held with students of some public and non-public Universities in Tirana.

  • The preparation of the publication on the consumer rights on the Ministry's website.

  • The preparation of the 5000 leaflets, with MEDTE budget, that are distributed by mail in several key areas of Tirana and Albania's main cities.

  • The European Commission recommends Albanian authorities to cooperate with the three existing Consumers’ Organisations and to provide financial or other support to their capacity-building efforts with the aim to strengthen these organisations and foster their active involvement in consumers’ affairs.

Actually, in consumer protection area performs their activity 5 associations. During June and July 2014 two new associations on consumer protection have been introduced to MEDTE: “Weight Measurements – Prices” and “Albanian Consumer Centre”. As well a joint meeting with the participation of all organizations on consumer protection has been held, where opinions on improving cooperation between state structures and consumer associations are exchanged.


On Health Protection (point 4.2), during March 2014 February 2015, a number of EU Directives are further approximated, as below mentioned:

  • Directive 2004/37/EC by DCM no. 520 of 6.8.2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding the exposure of workers to the risk related to exposure to carcinogens or mutagens at work”;

  • Directive 90/270/EEC, by DCM no. 521 of 6.8.2014 “On the approval of the Regulation “On the minimum health and safety requirements for work with display screen equipment”;

  • Directive 98/24/EC, by DCM no. 522 of 6.8.2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding the exposure of workers to the risk related to chemical agents at work”;

  • Directive 90/269/EEC by DCM no. 523 of 6.8.2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding for the manual handling of loads and for repiling points 15.1-15.10 of Annex V of the DCM no. 312, dated 5.5.2010 “On the approval of regulation for security at the construction area;

  • Directive 2000/54/EC, by DCM no.550 of 27.08.2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding the exposure of workers to the risk related to exposure to biological agents at work”;

  • Directive 2002/44/EC, by DCM no. 842 of 12.2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding the exposure of workers to the risk arising from vibration”;

  • Directive 2013/35/EU, by DCM no. 843 of 12.2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding the exposure of workers to the risks arising from nonionizing fields”;

  • Directive 2006/25/EC of the European Parliament and of the Council of 5 April 2006, by DCM no. 844 of 12. 2014 “On the approval of the Regulation “On the minimum health and safety requirements regarding the exposure of workers to risks arising from artificial optical radiation”.




  • Improving quality and access to healthcare services for all - Reform of the primary healthcare system and sustainability.

During year 2014, based on DCM no. 185, dated 2.04.2014 "On determining the manner of implementation of Basic Medical Control for citizens ages 40-65 years", and in accordance of the Government program to establish a periodic inspection program for nationals 40-65 years age group, about 900 thousand Albanians citizens are invited, once a year to appear in the health center location and make basic health control, which is offered free to any citizen, whether or not insured for health care. The basic control is offered in each of the 415 health centers, including as well five mobile units, which will be available to people who live far from the health center.


Since 1 April 2014, removal of VAT on health care services and medicines is applicable. That includes all implantable medical devices, cardiology, dentistry, orthopaedics, etc. As well the list of reimbursable drugs is expanded with 56 new drugs.
Since October 2014 the Ministry of Health has launched a service monitoring process, in several major cities of the country, across the territory hospital and outpatient care service. During the period October-December 2014 were interviewed about 250 doctors (from 1244 hospital care doctors) and 600 nurses (from 4253 nurses hospital care) in most hospitals in the country.
In cooperation with technical and financial support of the World Bank, the Ministry of Health has begun implementing a project on measuring patient satisfaction through their interaction with SMS This project is being implemented in hospital and ambulatory service: University Hospital Center "Mother Teresa" in Tirana as well as regional hospitals and specialty clinics in Shkodra, Vlora, Elbasani, Korça and Durrësi.
On mental health, during March 2014 – February 2015, is approved the DCM No.762, on “Organization and provision of mental health care for people who are in residential care institutions”, according to the article 18, paragraph 2 of Law No.44/2012 "On Mental Health". On 19 November of 2014, has been approved the Order of the Minister of Health No.504, for “One addition and change in the order of the Minister of Health, No.386, date 17 June of 2013 "On the establishment of the medical commissions for direction in KMCAP for patients with mental health disorders”, as amended, in implementation of Article 19, paragraph 5 and Article 20, paragraph 4 of Law No.44/2012 "On Mental Health".
The Ministry of Health, Ministry of Social Welfare and Youth, Ministry of Justice, World Health Organization, Ombudsman, State Policy, and other relevant actors dealing with mental health, are evaluating the local/regional possibilities on human and infrastructure resources for establishment of elements of the integrated mental health services system (acute mental health inpatient services in regional hospitals, community mental health centres, etc.), aiming the closure of the two psychiatric hospitals. To support this activity the Minister of Health has proposed to the Minister of Social Welfare and Youth to both establish an ineter – sectorial working group who will analyze and propose the ways to address the chronic residents’ issues, specifically those with mental retardation, which from years are accommodated in both two psychiatric hospitals of the country. This co-order is planned to be signed within February 2015, and will be co-chaired by the relevant Deputy Ministers of Health and Social Welfare and Youth. This act is expected to be finalised within first trimester of 2015.
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