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Croatian Authority Critiques Local Sales Residency Requirement

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The Croatian competition authority has deemed the residency requirement for mobile vendors in Udbina incompatible with competition principles.

15.10.2025 | Croatian competition authority


The Croatian competition authority, AZTN, has issued an opinion regarding the decision on conditions and locations for mobile vendors in Udbina. The authority analyzed the provisions of this decision in light of competition law.

AZTN found that local governments, including Udbina, often impose conditions that violate competition principles by setting excessive, restrictive, or discriminatory requirements. Such conditions can adversely affect market competition.

According to AZTN, every entrepreneur should have equal access to the market, which is fundamental to entrepreneurial freedom and a market economy. In this case, the authority criticized specific provisions that required mobile vendors to reside in Udbina, arguing that these conditions limit market access based on geographic criteria, undermining equality among participants.

AZTN recommended amending these provisions to ensure that conditions for conducting business are based solely on professional, technical, and expert criteria, regardless of the vendor's location.

Udbina's local government stated that these provisions were intended to protect small local producers and promote sustainable agriculture. However, AZTN emphasized that local authorities must comply with competition law, which is mandatory, to ensure equal and transparent market access for all entrepreneurs.

Conditions should be set to ensure compliance with professional, technical, and expert criteria without restricting market access based on territorial or discriminatory grounds, which could negatively impact competition.

In conclusion, AZTN's opinion highlights that market regulation goals, including mobile sales, must align with competition principles to ensure effective market competition, equality among entrepreneurs, better offerings for consumers, and transparent management of local markets.

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