Latest updates

Competition Authority publishes information paper on dawn raids
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • December 14 2017

The Czech Competition Authority (CCA) recently published an information paper on dawn raids during its annual competition law conference. The paper aims to provide guidance explaining the powers and privileges of CCA officials in the course of a dawn raid and a brief overview of the case law relating to dawn raids, focusing on judicial review of the legality of dawn raids carried out after the European Court of Human Rights' judgment in Delta Pekárny.

New law implementing EU Damages Directive
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • September 14 2017

With the introduction of the Damages Act, the Czech Republic has finally implemented the EU Damages Directive, which establishes common EU rights for cartel victims seeking damages. The Damages Act introduces many novelties into national law, which aim to improve the procedural status of citizens and businesses that claim compensation before the national courts for damages caused by an infringement of EU or national antitrust rules.

OnDemand Competition and antitrust in the digital age
Schoenherr Attorneys at Law
  • Czech Republic
  • April 20 2017

While the advance of the digital economy and the growth of e-commerce affects competition in the Czech Republic, the Office for the Protection of Competition has not yet developed a special strategy or coherent decision-making practice with respect to the specific issues relating to digital markets. That said, the office has issued several decisions regarding competition in online markets – in particular, regarding mergers between e-shop operators and e-shop resale price maintenance arrangements.

Anti-competitive agreements in telecoms sector
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • February 02 2017

The Office for the Protection of Competition recently fined Czech mobile operators Vodafone Czech Republic as and O2 Czech Republic as a total of Kr99 million after it deemed an agreement on an exclusive, direct interconnection between the two operators included in a 2001 interconnection agreement to be anti-competitive. Another case in the telecoms sector which was originally initiated by the office is now under the jurisdiction of the European Commission.

Controlling entity's liability for bankrupt corporation's obligations
  • Insolvency & Restructuring
  • Czech Republic
  • November 18 2016

Under Czech law, a parent company, controlling entity or influential entity may be liable for the obligations of a bankrupt corporation under its control. Respective controlling entities' liability is a frequently discussed issue and closely related to the common law doctrine known as 'piercing the corporate veil'. The judiciary and legal academic community are torn when it comes to applying particular provisions of the Corporations Act in such situations.

New information letter on amendment to Significant Market Power Act
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • October 20 2016

While the 2016 amendment to the Significant Market Power Act sought to remove and clarify ambiguous provisions within the act and generally provide greater protection to suppliers, several provisions remained vague and were thus open to interpretation. As such, the Office for the Protection of Competition recently issued an information letter to clarify and explain the changes introduced by the amendment.

Frivolous insolvency petitions
  • Insolvency & Restructuring
  • Czech Republic
  • June 17 2016

Frivolous insolvency petitions are typically observed in sectors which are built on repeat long-term relationships. These petitions aim to discredit and damage competitors' reputations in a particular market. In response to the rising trend of filing frivolous insolvency petitions, the Supreme Court and the legislature have taken steps to protect alleged debtors that are wrongly accused and stigmatised by others as being insolvent.

Future of private competition law enforcement
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • March 03 2016

The Prague Municipal Court recently dismissed the private damages action brought by private railway passenger carrier LEO Express against publicly owned national incumbent Czech Railways due to a lack of evidence. Although the judgment is not publicly available, the available information already raises the question of whether it might shed a negative light on the future of private enforcement of competition law in the Czech Republic.

Competition Authority imposes €74 million fine for bid rigging
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • December 10 2015

The Competition Authority recently announced in a press release that it had fined companies from the construction sector approximately €74 million for bid rigging. Despite the fact that only limited information is available, the fine seems exceptionally high compared to those imposed by the Competition Authority in the past.

Škoda Auto fined Kr49 million for resale price maintenance
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • July 09 2015

The Competition Authority recently issued a controversial decision in which it fined Škoda Auto Kr49 million for engaging in anti-competitive practices in the form of resale price maintenance. The decision deviated from the authority's established decision-making practice – in particular, its procedure for setting fines. It is unclear whether this is a one-off aberration or a complete departure from the authority's regular practice.

Third-party rights to appeal merger approval decisions
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • April 30 2015

The Supreme Administrative Court recently issued its judgment in Severní energetická. The court held that since third parties are not parties to administrative proceedings, they are not entitled to challenge merger approval decisions. However, it did leave open the possibility for third parties to challenge merger approval decisions by other means.

Competition Authority resumes dawn raids on business premises
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • March 12 2015

A 2003 European Court of Human Rights ruling held that the Office of Protection of Competition (CCA) could not perform dawn raids on business premises without first obtaining a warrant. However, the CCA recently announced that it would once again begin conducting raids on business premises without prior judicial warrants, stating that the absence of a judicial warrant is justified by a follow-up judicial review of the legality of the dawn raid.

Competition Authority cannot perform dawn raids without prior judicial approval
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • November 27 2014

The European Court of Human Rights (ECHR) recently confirmed that the Office for the Protection of Competition violated the European Convention on Human Rights when it entered Delta Bakery's premises without first obtaining a warrant. The ECHR's ruling has called into question all past and future administrative investigations on business premises performed with legal authorisation, but without a judicial warrant.

Similarity of bids insufficient evidence for bid rigging
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • August 21 2014

A similarity or even an overlap of parts of bids does not constitute sufficient evidence to establish a breach of national competition law. This follows from a recent Competition Authority decision in an alleged bid-rigging case. By this decision, the authority challenged its own approach concerning the prosecution of bid rigging. Further, the decision has provided a universal excuse for bid rigging among competitors.

Recorded telephone conversation – legal evidence in administrative proceedings
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • June 12 2014

A recently published Supreme Administrative Court decision found that a telephone conversation between two individuals was legitimate evidence in administrative proceedings. It is hoped that this judgment will help companies abused by competitors to persuade the CCA that anti-competitive behaviour has taken place.

New form of litigation: action for protection from disturbed possession
  • Litigation
  • Czech Republic
  • April 29 2014

Following the entry into force of recent amendments to the Code of Civil Procedure and the new Civil Code, certain new concepts have been introduced into the Czech legal system, including actions for protection from disturbed possession. This new type of litigation partially replaces the legal instrument of protection of a peaceful state contained in the previous Civil Code.

Controversial Brno Regional Court decision slows down notification procedure
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • April 03 2014

Following a recent controversial ruling by the Brno Regional Court, parties to notification proceedings are now unable to speed up the legal force of the approval decision issued by the Competition Authority. They must wait until 15 days have passed after issuance of the decision before proceeding with their business. If any third party appeals the approval decision, the notification procedure will be prolonged.

Insolvency Act amended following rise in number of proceedings
  • Insolvency & Restructuring
  • Czech Republic
  • February 07 2014

An amendment to the Insolvency Act recently took effect. Unlike other recently adopted acts, the objective of the amendment is not solely to harmonise the Insolvency Act with the new Civil Code, but also to respond to evaluation of the act's application, the practice of the courts and feedback from insolvency trustees, courts, debtors, creditors and other entities whose conduct is influenced by the act in some way.

Damages claims for infringing competition rules: higher chance of success?
Schoenherr Attorneys at Law
  • Competition & Antitrust
  • Czech Republic
  • January 30 2014

Under existing EU legislation, if there is a causal relationship between harm suffered and an infringement of competition rules, any individual is entitled to claim compensation for such harm. However, potential claimants have remained rather sceptical of bringing antitrust damages actions so far. This may change with the adoption of a proposed EU directive on actions for damages for infringements of competition law.

New legislation offers greater flexibility for structuring M&A transactions
  • Corporate Finance/M&A
  • Czech Republic
  • December 11 2013

As investors' expectations in the global economy improve, M&A activity on the market begins to gather pace. As is often the case in the fourth quarter, there is pressure to close many deals before the year-end; this is no different in the Czech Republic. However, the last quarter of 2013 has an added significance, as it is the last period in which transactions will be governed by the existing Civil Code and Commercial Code.