Competition Law at Czech Republic

Here’s a detailed overview of Competition Law in the Czech Republic:

🏛️ Competition Law in the Czech Republic

1. Legal Framework

The primary competition law in the Czech Republic is Act No. 143/2001 Coll., on the Protection of Competition (the “Competition Act”).

The Act implements the EU Competition Law principles, as the Czech Republic is a member of the European Union since 2004.

The law works in parallel with EU competition regulations enforced by the European Commission.

2. Main Regulatory Authority

The Office for the Protection of Competition (ÚOHS) is the national competition authority responsible for enforcing competition law.

ÚOHS handles investigations, merger control, and anti-competitive conduct cases within the Czech Republic.

3. Core Provisions

A. Prohibition of Anti-Competitive Agreements

Agreements between competitors or other undertakings that restrict competition are prohibited.

Includes:

Price fixing.

Market sharing.

Bid rigging.

Both horizontal and vertical agreements are scrutinized.

Some agreements may be exempt if they contribute to improving production or distribution or promote technical/economic progress without eliminating competition.

B. Abuse of Dominant Position

Companies with a dominant market position are prohibited from abusing it.

Examples of abuse:

Excessive pricing.

Discriminatory practices.

Restricting production or sales.

Refusal to supply.

C. Merger Control

The law requires prior notification and approval of certain mergers and acquisitions.

Thresholds are based on turnover, market share, and other criteria.

The ÚOHS reviews mergers to ensure they do not significantly impede effective competition.

4. Enforcement Powers

The ÚOHS can:

Conduct dawn raids and inspections.

Issue fines and sanctions (up to 10% of turnover for infringements).

Order the termination of illegal conduct.

Impose behavioral or structural remedies in merger cases.

5. EU Integration

Czech competition law closely aligns with Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU).

The ÚOHS cooperates with the European Commission and other national competition authorities through the European Competition Network (ECN).

6. Recent Developments

Increased enforcement focus on digital markets, abuse of dominance by tech companies, and bid-rigging in public procurement.

Strengthening of leniency programs to encourage cartel whistleblowing.

Emphasis on consumer welfare and market innovation.

 

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