Category: Serbia

Alibaba and Oath Inc., a subsidiary of Verizon operating under the Yahoo! brand, have appointed Karanovic & Partners as their data protection representatives in Serbia.

In this capacity, Karanovic & Partners reports, it is authorized to act on behalf of these companies in relation to their obligations under the Serbian Data Protection Law, so that the “Serbian privacy watchdog, data subjects, and other parties can address it, in addition to or instead of the companies themselves, with any data processing questions and requests.” According to K&P, “of course, data subjects can also continue to communicate directly with Alibaba and Oath Inc./Verizon, including, in relation to exercising their rights under the Serbian Data Protection Law, using their contact details indicated in their respective privacy notices.”

On January 7th, 2021 the Rulebook on detailed conditions for submitting a request for temporary residence approval electronically entered into force.

It has been adopted by the Minister of Interior on the basis of Article 41 paragraph (10) of the Law on Foreigners (“Official Gazette of RS”, no. 24/18 and 31/19), and will start to apply as of April 1st, 2021 (hereinafter the “Rulebook“).

JPM Senior Associate Anja Šakan provides detailed conditions and procedures for the submission, ahead of the start of its application when the prescribed procedure should function in practice and greatly facilitate foreign citizens in regulating their residence status in the Republic of Serbia.

In accordance with the Rulebook, a request for a temporary residence approval can be filed electronically by a foreign citizen both when he is located on the territory of the Republic of Serbia, but also from abroad.

The electronic application form for the approval, i.e. extension of the temporary residence is enclosed to the Rulebook and forms an integral part thereof.

In order to be able to submit the request electronically, a foreigner must be registered at the eGovernment Portal (Portal eUprava). Upon registration, the request is submitted at the eGovernment Portal, within the service on the domain entitled “Livinginserbia”.

After submitting the request, the foreigner receives, through eGovernment Portal, instructions for further action and is being informed about the course of the procedure by the competent authority.

In case the conditions for granting temporary residence are met, the foreigner is being notified in his unique electronic mailbox at the eGovernment Portal about the date and address of the competent authority, where his personal presence is required in order to enter in his passport a sticker on the approved temporary residence.

If the conditions for granting temporary residence are not met, the foreigner shall be sent a decision on the rejection of the request for temporary residence in his unique electronic mailbox at the eGovernment Portal, all in accordance with the law.

As a reminder, the latest amendments to the Law on Foreigners from 2019 introduced the possibility of submitting a request for approval, i.e. extension of the temporary residence, electronically, but also a possibility to file a unified request for temporary residence approval and work permit, while the ministers responsible for internal affairs and employment had a period of six months to adopt by-laws regulating in more details conditions for submitting the request electronically, as well as the appearance and content of the unified request form and accompanying documentation that is to be submitted along with the request.

On November 28th, 2020, the Minister of the Interior and the Minister of Labor, Employment, Veterans’ and Social Affairs adopted the Rulebook on the unified request for approval, i.e. extension of temporary residence and issuance of a work permit to a foreigner (“Official Gazette of RS”, no. 144/2020) while the adoption of the Rulebook was postponed due to the lack of technical conditions for its implementation.

Now that the mentioned Rulebook has finally been adopted and entered into force, we have to be a little more patient, wait for its application to start on April 1st, and see if the prescribed procedure will finally function in practice and greatly facilitate foreign citizens in regulating their residence status in the Republic of Serbia.

By Anja Sakan, Senior Associate, JPM Jankovic Popovic Mitic

When Google announced its $2.1 billion merger deal with the smartwatch and fitness-tracker company Fitbit last year (“Deal”), consumer advocacy and anti-trust regulators have expressed concerns over the proposed acquisition. As a consequence, in August last year the European Commission (“EC”) opened an in-depth investigation to assess whether the said merger is in line with the EU Merger Regulation.

Following its investigation, EC had concerns that the transaction would have harmed competition in several markets. The concerns raised by EC were in particular:

1. By acquiring Fitbit, Google would acquire (i) the database maintained by Fitbit about its users’ health and fitness; and (ii) the technology to develop a database similar to that of Fitbit which could be used for the personalization of ads. As a consequence, Google’s competitors could be limited for similar or same services to the detriment of advertisers.
2. Google might restrict competitors’ access to the Fitbit Web Application Programming Interface (‘API’) in the market for digital healthcare;
3. Google could put competing manufacturers of wrist-worn wearable devices at a disadvantage by degrading their interoperability with Android smartphones.

Other market participants raised a privacy concern indicating that it would be increasingly difficult for users to track what their health data would be used for.

In order address concerns raised, Google offered the following commitments:

1. Google will not use for Google Ads the health and wellness data collected from wrist-worn wearable devices and other Fitbit devices of users in the EEA;
2. Google will maintain a technical separation of the relevant Fitbit’s user data for any other Google data that is used for advertising;
3. Google will ensure that European Economic Area (“EEA”) users will have an effective choice to grant or deny the use of health and wellness data stored in their Google Account or Fitbit Account by other Google services;
4. Google will maintain competitor’s access to users’ health and fitness data to software applications through the Fitbit Web API, without charging for access and subject to user consent;
5. Google will continue to license for free to Android original equipment manufacturers (OEMs) those public APIs covering all current core functionalities that wrist-worn devices need to interoperate with an Android smartphone.
6. To ensure that wearable device OEMs have also access to future functionalities, Google will grant these OEMs access to all Android APIs that it will make available to Android smartphone app developers including those APIs that are part of Google Mobile Services (GMS), a collection of proprietary Google apps that is not a part of the Android Open Source Project.
7. Google will also not circumvent the Android API commitment by degrading users experience with third party wrist-worn devices through the display of warnings, error messages or permission requests in a discriminatory way or by imposing on wrist-worn devices OEMs discriminatory conditions on the access of their companion app to the Google Play Store.

Consequently, in December 2020 the EC approved the Deal, subject to the full compliance with the above-mentioned commitments. The duration of the commitments is set to ten years. However, due to Google’s entrenched position in the market for online advertisement the EC may decide to extend the duration of the ads commitment by up to an additional ten years, if necessary.

A trustee, who has to be appointed before the closing of the transaction will monitor the implementation of the commitments. The trustee will have far-reaching competences, including access to Google’s records, personnel, facilities or technical information.

As the Deal is a global merger, it has been notified in several jurisdictions, including the European Union, United States, Australia, South Africa, Canada and Japan.

In parralel with the EC’s investigation, other competition authorities including the Australian Competition and Consumers Commision („ACCC“) and U.S. Justice Department also initiated antitrust investigations into the Deal.

Following the EC’s approval of the Deal, Competition Commission of South Africa also conditionally approved the Deal.

However, despite the fact that the Deal has received conditional clearance in Europe and South Africa, other regulators are yet to make a decision.

Specifically, on 22 December 2020 the ACCC has announced that it will not accept a long-term behavioral undertaking offered by Google. The ACCC has extended its decision date for reviewing the transaction through to 25 March 2021 in order to continue its investigation and consider its legal options.

In ACCC’s official announcement it is stated: “The ACCC continues to have concerns that Google’s acquisition of Fitbit may result in Fitbit’s rivals, other than Apple, being squeezed out of the wearables market, as they are reliant on Google’s Android system and other Google services to make their devices work effectively. While we are aware that the European Commission recently accepted a similar undertaking from Google, we are not satisfied that a long-term behavioral undertaking of this type in such a complex and dynamic industry could be effectively monitored and enforced in Australia.”

Therefore, the closing of the Deal is extended and is subject to the decision of other regulators and it remains to be seen what the final outcome will be. The EC’s approval is a major step toward closing the deal, but Google and Fitbit aren’t totally in the clear yet. 

This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.

By Milan Samardzic, Partner, and Vanja Vujnovic, Senior Associate, Samardzic, Oreski & Grbovic

BDK Advokati has advised Frontier Pharma and the Baystone investment group on the acquisition of Zdravlje Leskovac, a Serbian pharmaceutical company owned by Actavis, which is itself a subsidiary of Israel’s Teva. Karanovic & Partners advised the sellers on the deal, which is expected to close in March of 2021.

According to BDK Advokati, “Baystone and Frontier Pharma are expected to further invest in Zdravlje Leskovac production and bring additional products to the facility over time.”

BDK Advokati’s team included Managing Partner Tijana Kojovic, Senior Partner Vladimir Dasic, Associates Jelena Zelenbaba and Bisera Andrijasevic, and Junior Associate Sanja Dedovic.

Karanovic & Partners’ team included Senior Partner Dragan Karanovic, Partners Milos Jakovljevic, Bojan Vuckovic, and Goran Radosevic, and Senior Associate Sava Draca.

Karanovic & Partners has advised Pollard Banknote on its EUR 36 million acquisition of the Next Generation Lotteries in Serbia. Canada’s Torys law firm reportedly also advised the buyer on the deal.

NGL is a Vienna-based provider of software solutions to lotteries. Apart from Austria, the company also has offices in Spain, Serbia, Tunisia, and Iceland.

Pollard Banknote is a Canada-based developer of instant lottery games, as well as lottery-related retail and digital solutions.

According to Karanovic & Partners, “Pollard Banknote Limited announced that it has signed a definitive agreement to acquire 100% of the equity of Next Generation Lotteries AS, a leading provider of lottery management and iLottery technology.” In addition, the firm reported that, “the acquisition is subject to certain standard regulatory and third-party consents and is expected to close early in the first quarter of 2021.”

Karanovic & Partners team included Partner Ivan Nonkovic and Senior Associate Sava Draca.

Karanovic & Partners could not disclose any further information about the deal.

CMS’s Belgrade office has advised Banca Intesa Belgrade on financing provided to Delta Real Estate for the development of the Delta Planet Nis shopping mall in Nis, Serbia.

According to CMS, the project is valued at EUR 70 million and is expected to be completed in 2021. Delta Planet Nis, according to the firm, “will be the largest shopping mall in Nis, covering 40,000 square meters.” The firm reports that, “the new shopping center will have two levels and … [will offer] a large selection of international and local fashion brands, as well as restaurants, cafes, playrooms for children, and more than 800 parking spaces.”

Delta Real Estate is a real estate developer that focuses on Serbia, Slovenia, Bosnia & Herzegovina, and Bulgaria. The company’s portfolio includes shopping malls, retail parks, hotels, and retail, office, and residential space in Serbia and the region, as well as a number of logistics centers, car dealerships, and endowment projects.

CMS’s team consisted of Partners Ivan Gazdic and Milica Popovic, among others.

On 26 November 2020 the Minister of the Interior and the Minister of Labor, Employment, Veterans and Social Affairs adopted the Rulebook on the unified request for approval, i.e. extension of temporary residence and issuance of a work permit to a foreigner (“Rulebook”), all in accordance with amendments to the Act on Foreigners from 2019 (“Act”).

The Rulebook refers to Article 41a of the Act, which prescribes a unified request for obtaining a residence and work permit for foreign citizens, starting from 1 December 2020. Additionally, the Rulebook prescribes the look and content of the form of a unified request for approval, i.e. extension of the temporary residence with a request for a work permit for a foreign citizen, as well as documentation submitted with the request itself.

The competent body, that receives the unified request, is the regional police administration, i.e. the Immigration Office. After that, the Immigration Office submits a request to the National Service for Foreigners (“NES”) and foreign citizen or his employer should send an e-mail to the NES e-mail address or directly to NES’ office in order to submit the necessary documentation for issuing a work permit.

Finally, we point out that the procedures for obtaining temporary residence and work permit are still formally legally separated and each body resolves the request within its competences. Therefore, temporary residence and work permit will keep being issued separately, as before.

This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.

By Radovan Grbovic, Partner, and Katarina Askic, Junior Associate, Samardzic, Oreski & Grbovic

The new Law on Games of Chance, applied from April 2020 did not introduce material changes to gambling business itself, apart from increased financial burden to operators (higher minimum initial capital, fees, deposits and new technical requirements) and in general the novelties have not been numerous, but it also stipulated the obligation of adoption of new harmonized rulebooks.

Since certain ordinances date even from year 2004, the adoption of completely new set of ordinances in this area is welcomed. The Ministry of Finance adopted a total of 21 ordinances that entered into force on December 26, 2020, of which 19 ordinances existed before and now are completely replaced and amended in order to be harmonized with the new law. The changes therein mostly refer to the specification of new legal terms and requirements, including harmonization with the new obligations of the organizers. Two ordinances are new bylaws, namely the Rulebook on the manner of keeping mandatory records and reporting on turnover for each type of classic games of chance as well as the Rulebook on the manner of keeping obligatory records and reporting on realized turnover for special games of chance via electronic communication.

The amendment to the Rulebook on types of games of chance (catalogue on types of games of chance) introduces a closer description of the types of betting that are betting on the outcomes of sporting events, outcomes of other sporting events (dance, music, singing and similar) and betting on a computer-generated virtual event.
The new Rulebook on closer conditions, i.e. the content of the rules of games of chance, unlike the previously valid one, introduces exhaustively listed elements that must be contained in the Rules of the game.
The new provision is also the one stating that prize games in goods and services are also considered to be the games in which everyone wins, when for the participants the type and value of the prize represent uncertainty.

New rulebooks were adopted that regulate the manner of determining the fulfilment of conditions for obtaining approval for organizing special games of chance – betting, games on slot machines and games of chance through electronic means of communication, as well as regarding obtaining consent for organizing prize games in goods and services.

These rulebooks are harmonized with the amended legal provisions regarding the conditions, requirements and documentation required to be submitted to the Gaming Authority and regulate in a more precise way which documentation is submitted and in which way the Gaming Authority determines the fulfilment of conditions.

The request can be submitted in written or electronic form, provided that if the applicant is the holder of data, the original documents or certified copies must still be submitted. The new rulebooks on the information-communication system for organizing special games of chance regulate in more details and in accordance with the novelties from the new Law the manner and procedure of determining the fulfilment of technical and functional characteristics of the system, storage conditions and data exchange with the Gaming Authority.

Details of electronic transactions, exchanges with the software solution of the Gaming Authority, as well as the procedure and verification manner of data in the operator’s database shall be regulated by the directives of the Gaming Authority. These rulebooks will be applied from July 11, 2021.

New rulebooks that regulate the technical and functional characteristics of tables and slot machines, as well as the conditions for performing table repairs, shall be applied from January 15, 2021. The new Rulebook on detailed conditions for conducting audio and video surveillance, the manner of keeping documentation and physical protection in the casino, conducting video surveillance and keeping documentation in the slot machine club and betting shop, shall be applied from July 11, 2021.

The same applies to the rulebooks that determine the form and content of stickers and registration of gambling tables, slot machines and betting counters. The Ministry also adopted the rulebooks regulating manner of keeping records, reporting on turnover by slot machine and by betting counter and the content of records on the bases for calculation and paying fees for organizing games in casinos, which shall be applied as from July 11, 2021.

We remind the operators on the obligation to comply with the new conditions in terms of the initial capital, deposits and bank guarantees, the IT communication system and video surveillance provisions, including compliance with above mentioned ordinances, at latest until 10 July 2020.

By Jelena Stankovic Lukic, Partner, JPM Jankovic Popovic Mitic

NKO Partners has advised CTP Invest on its acquisition of a part of Eyemaxx Real Estate’s portfolio in Serbia. 

CTP Invest is a privately held developer and manager of business parks in Central Europe.

Eyemaxx Real Estate is a developer of residential office properties, micro and student apartments, hotels and serviced apartments, urban quarters, as well as retail and logistics. The company’s core markets are Germany and Austria.

According to NKO Partners, “the acquisition was structured as a complex combination of a share deal and an asset deal.” The firm reported that the “subject matter of the transaction, which was closed in mid-December, is acquisition of the existing operating logistic facilities and empty land intended for new developments.” Financial details were not disclosed.

The NKO Partners team consisted of Partner Djordje Nikolic and Senior Associate Milica Boskov.

Editor’s Note: After this article was published, the Andrejic & Partners law firm informed CEE Legal Matters that it had advised Eyemaxx on the deal. The firm’s team consisted of Attorneys Aleksandar Andrejic and Vladimir Peric.

MPartners Legal has set up a Chinese and Asian markets desk.

According to MPartners, the firm is “looking forward to new challenges and business opportunities ahead of us while strengthening the cooperation and excellent relationships with our Chinese clients – belt and road initiative.”