The Growing Importance of Compliance and Antitrust Law in the Technology Sector – Global Trends and Practice from Serbia
The rapid development of digital technologies is changing the face of both the global and domestic economy – and at the same time bringing complex legal challenges. Technology companies, the IT sector and startups are facing growing requirements in the area of regulatory compliance and adherence to competition/antitrust law. Practice shows that these issues are no longer the exclusive concern of multinational giants, but also affect markets such as Serbia.
Regulatory frameworks are becoming increasingly dynamic, adapting to accelerating technological innovations and new risks. In the era of artificial intelligence, cloud computing and mass digitalisation, standards for data protection, cybersecurity and transparency are growing stricter, while companies that neglect compliance risk heavy fines, reputational damage and litigation.
Technology is a source of innovation, but it is also a double-edged sword: it is not enough to develop new tools and services if they are not accompanied by proactive risk-management strategies aligned with regulations such as GDPR, PCI DSS and American and European guidelines on cyber-incident reporting.
Major tech companies worldwide are under increasing pressure from regulators for abusing dominant market positions, gaining unfair competitive advantages, or even engaging in algorithmic price-fixing. The new European Digital Markets Act, together with regulatory changes in the UK and the US, imposes stricter conditions on acquisitions and the development of digital ecosystems. Major tech companies worldwide are under increasing pressure from regulators for abusing dominant market positions, gaining unfair competitive advantages, or even engaging in algorithmic price-fixing. The new European Digital Markets Act, together with regulatory changes in the UK and the US, imposes stricter conditions on acquisitions and the development of digital ecosystems.
The sophistication of investigations is growing – advanced forensic tools and AI are being used to detect cartels, and “dawn raids” (unannounced inspections) are becoming standard in investigations, not only around the world but also in our market.
The EPS Distribucija Case – A Landmark Serbian Example
One of the most notable examples from competition-law practice in Serbia concerns the case of the company EPS Distribucija. In 2021, the Commission for the Protection of Competition imposed a record fine on EPS Distribucija for the alleged abuse of a dominant position in the electricity-distribution market. However, on appeal by EPS, the Administrative Court annulled that decision in 2022 and ordered the case to be remitted for fresh proceedings before the Commission.
The Court concluded that the proceedings before the Commission had not met all the procedural standards arising from both domestic legislation and European competition-law practice – above all with regard to the party’s right to a fair hearing, the reasoning of the decision and the opportunity for an adequate defence. This case is particularly important because it sends a message to the market and regulators: a high level of procedural protection and expert conduct of proceedings are essential for the legitimacy of the measures imposed and the preservation of businesses’ rights.
Lessons for the Tech and IT Sector
For technology and IT companies, the EPS Distribucija case serves as a lesson in how important it is to have adequate compliance policies, as well as a legal strategy for defending oneself in proceedings before a regulator or court. At the same time, the case demonstrates that Commission decisions are not final and that judicial review serves as a crucial safeguard against potentially excessive or unfounded penalties.
This brings the discussion full circle – illustrating the importance of legal protection, the significance of procedural rights, and the practical impact of case law on the development and modern operation of the technology sector in Serbia and beyond, shaping future practices.
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