CHALLENGES OF THE COMPETITION POLICY IN SERBIA AND OTHER WESTERN BALKAN COUNTRIES

Free and undisturbed competition, in terms of competing among the market participants to gain as much share as possible, is one of the cornerstones of the efficient functioning of a market economy, all with the aim of increasing social welfare. Due to the emergence and increase of numerous market anomalies, the market of perfect (complete) competition remains only a theoretically viable concept, while imperfect market structures and unequal market relations form are an economic reality. The market in some countries is developed as much as the competition. A competition must be encouraged and even protected with mechanisms and standards that are appropriate to the market economy. In this way the competition encourages an increase of market players performanses. In the process of accession of Serbia and other Western Balkan countries to the European Union one of the most sensitive and most complex economic problems is just related to the construction of a modern market structure. It is certain that the attitude towards the market and the development of competition should have a crucial role in the future economic development and the inclusion of these countries in trends on the single European market. In this sense it is a developed legal regulation which, on the one hand, encourages and helps to strengthen the competitiveness of enterprises in domestic and foreign markets, and on the other hand, with very rigorous sanctions discouraged and suppressing the creation of monopolies, effectively prevents all forms of distortion of competition, monopolistic tendencies (agreements), abuse of the dominant position in the market. The inherent aspiration to restrict competition in any way requires the establishment of an adequate legal and institutional framework. Forming an effective antitrust policy is a conditio sine qua non for the smooth operation of the "invisible hand" in the field of competition protection. Experience shows that in the transition countries the most complex issue is related to the construction of a competetive market structure in a function of ensuring an intense and effective competition between economic entities. Antitrust legislation is therefore particularly important in small open economies that are in pressure of globalization and local state and private monopolies. Among these countries are the Western Balkan states, which are the subject of the research of authors in this paper. Experience shows, and the current practice in Serbia fully confirm that just in the domain of creating the competitive market conditions show considerable resistance. Paper points out the shortcomings and the possible increase in the degree of efficiency of antitrust legislation in the Western Balkan countries.