Slovenia: Schoenherr advises GA Adriatic and Renault in settlement with Slovenian Competition Protection Agency

"We are pleased to have provided valuable advice to our client during these proceedings, particularly as this is the first time the Agency has applied the new law to reduce fines," said Schoenherr partner Matej Črnilec. "After a lengthy process, this has been a welcome development that should expedite future cases and lead to more favourable outcomes for all parties involved."

The case involved an investigation by the Agency into allegations of cartel arrangements among several Renault repair outlets and dealers, specifically concerning bid rigging in public tenders for auto repair services.

In 2021, the Agency issued an infringement decision finding that Renault Nissan Slovenija (now GA Adriatic), Avtohiša Real, Avtohiša Malgaj, Pleško Cars and Avtoservis Kalan violated competition laws. In response, GA Adriatic filed a lawsuit in 2022 to challenge the Agency's decision before the Administrative Court of the Republic of Slovenia.

Effective January 2023, the new Competition Restriction Prevention Act (ZPOmK-2) introduced provisions for reducing administrative fines by up to 20 % for companies that apply for settlements. Four of the five companies expressed interest in this process and engaged in negotiations with the Agency. After lengthy and complex negotiations, the parties reached a settlement on the amount of the fine and certain other arrangements. The aggregate amount of the fines for all the settling parties was just over EUR 1m (individual fines not yet disclosed).

GA Adriatic is part of Grand Automotive group, a distributor of passenger cars (including Renault), light commercial vehicles and spare parts, as well as an operator of retail sites for the sale and service of vehicles. (renault.si, group.renault.com)

The Schoenherr team advising GA Adriatic was led by partner Matej Črnilec, with further support provided by Špela Lovšin (attorney at law) and Tilen Žagar (senior associate). Zoran Šoljaga (partner) assisted the team during the initial litigation phase in 2022.

Law Firm Zidar Klemenčič acted as local legal counsel to GA Adriatic in auxiliary proceedings. Podjed acted for AVTOHIŠA REAL, Fatur Menard and Tomaž Čad for AVTOHIŠA MALGAJ, Fašun, Melihen, Milač, Strojan for PLEŠKO CARS, and Tadej Kalan for Avtoservis KALAN.