Montenegro is advancing a new phase of regulatory reform aimed at strengthening competition policy, with authorities preparing upgrades to the legal and institutional framework that governs market behaviour. The initiative reflects both domestic economic priorities and the country’s broader push to align with EU standards as accession negotiations intensify.
At the centre of the reform agenda is the modernisation of the Law on Protection of Competition, with proposed amendments designed to bring Montenegro closer to the EU acquis, particularly the ECN+ Directive framework governing competition enforcement across member states.
The direction of change is structural rather than incremental. Authorities are seeking to expand the powers of the national competition authority, improve investigative tools, and strengthen enforcement mechanisms. This includes enhancing the ability to gather evidence, conduct market inquiries, and impose corrective measures more effectively.
Stronger enforcement and institutional capacity
A key feature of the reform is the redefinition of the role of the Agency for Protection of Competition. Under the proposed framework, the agency is expected to gain greater autonomy and direct sanctioning powers, including the ability to impose fines for competition breaches—moving away from reliance on court-based misdemeanor procedures.
This shift is significant from an investor and market perspective. Faster enforcement cycles and clearer penalty structures are intended to improve legal certainty and reduce the time lag between infringement and sanction.
In parallel, procedural safeguards are being updated to align with EU standards, including clearer rights for companies under investigation and more structured decision-making processes within the authority.
Focus on market concentration and fair competition
The reforms also target merger control and market concentration, areas seen as increasingly important in a small and concentrated economy such as Montenegro’s.
Clarifications around turnover thresholds and notification requirements are designed to improve transparency and predictability for investors, particularly in sectors where consolidation is accelerating, including energy, telecoms and retail.
At the same time, the framework reinforces prohibitions on abuse of dominant position and anti-competitive agreements, maintaining alignment with core EU competition principles governing pricing, market sharing, and unfair commercial practices.
Economic rationale: Competitiveness and market efficiency
Beyond legal alignment, the reform carries a broader economic objective. Montenegro’s authorities are seeking to create a more competitive and transparent market environment, capable of attracting investment while preventing distortions that can arise in smaller economies with limited competition.
This is particularly relevant in sectors where state-owned enterprises or dominant private players still hold significant market influence. Stronger competition oversight is viewed as a mechanism to improve efficiency, reduce barriers to entry, and enhance consumer welfare.
The reform also intersects with EU funding frameworks. Progress in competition policy—covered under Chapter 8 of accession negotiations—is a prerequisite for deeper integration into the EU single market and for accessing certain financial instruments tied to reform performance.
Alignment with EU accession dynamics
The timing of the regulatory upgrade reflects increasing pressure from Brussels to demonstrate implementation capacity rather than legislative intent. Montenegro has already established a largely complete legal framework, but EU assessments continue to highlight the need for stronger enforcement and institutional effectiveness.
Competition policy is therefore becoming a key test case. The ability to investigate, sanction, and deter anti-competitive behaviour is increasingly seen as a proxy for the broader functioning of state institutions.
Transition toward a rules-based market environment
The emerging framework signals a shift toward a more rules-based and enforcement-driven market system, where regulatory institutions play a more active role in shaping competitive dynamics.
For businesses, this implies a more demanding compliance environment, with higher scrutiny of mergers, pricing practices, and market conduct. For investors, however, it also offers the prospect of greater predictability and alignment with EU standards—an important factor in capital allocation decisions.
As Montenegro moves closer to the EU, competition policy is evolving from a formal requirement into a central pillar of economic governance, linking market behaviour, regulatory credibility, and accession progress into a single reform trajectory.
