On the development of (not so) new competition systems—findings from an empirical study on Croatia

Abstract

Abstract This article traces and examines the lifecycle of Croatia’s competition system in the 1995–2018 period: from its inception until after the country acceded to the EU. It aims to identify the main challenges to achieving a higher level of competition system maturity in the context of a post-socialist economy. The article uses an extensive dataset using primary and secondary sources: original, in-depth interviews with key stakeholders (competition authority officials, judges, attorneys-at-law, in-house lawyers, journalists, and academics); quantitative data related to enforcement, budget, and human resources; and relevant media reports. Its unique findings include a specific evolutionary path with four distinct phases of development identified: Inception; Withdrawal; Pre-accession; and Post-accession, as well as two key challenges: institutional and competition culture embeddedness, and functional self-restraint of the competition authority. We argue that the challenges mentioned above, in the context of the competition system trajectory as portrayed in this article, prevent the system from evolving to a more mature stage. This country-specific study aims to contribute to the broader literature on the development of competition systems by examining the relevance of specific factors that influence their evolution.