Competition & Antitrust, Czech Republic updates

E-cigarette distributor fined for resale price maintenance
Schoenherr
  • Czech Republic
  • 24 September 2020

In a first-instance decision, the Office for the Protection of Competition has fined RITCHY EU sro Kc6.7 million (€270,000) for resale price maintenance practices. According to the decision, RITCHY EU, a distributor of e-cigarettes and refills, violated the Act on the Protection of Competition between 6 September 2017 and 31 March 2019 by imposing on its customers minimum resale prices for the goods concerned.

City of Prague fined for unfair parking rules
Schoenherr
  • Czech Republic
  • 20 August 2020

The Office for the Protection of Competition recently fined the City of Prague Kc980,000 (approximately €36,981) for creating anti-competitive parking conditions for hybrid vehicles. According to the office's press release, between 17 April 2018 and 30 April 2019 the City of Prague violated the Act on the Protection of Competition by favouring the parking of certain hybrid vehicles in paid parking zones in its territory without objectively justifiable reasons.

Constitutional Court upholds Act on Significant Market Power but declares 3% limit on marketing payments unconstitutional
Schoenherr
  • Czech Republic
  • 14 May 2020

The Constitutional Court recently upheld the Act on Significant Market Power, despite demands for its repeal by a group of senators almost four years ago. However, the court stated that the provision limiting the amount of suppliers' payments to customers with significant market power to 3% of the suppliers' annual sales is unconstitutional. This decision is of fundamental importance to future cooperation between suppliers and customers.

Competition authority seeks to obtain data from mobile phone operators
Schoenherr
  • Czech Republic
  • 23 April 2020

To facilitate the detection of anti-competitive behaviour, the Office for the Protection of Competition has proposed an amendment to the Act on Electronic Communication. Based on the amendment, the office would be entitled to request individual activity and location data (ie, date, time, mode of communication and duration) from mobile phone operators. However, access to this data would not be possible without prior judicial written permission.

Competition authority under scrutiny for alleged fishing expedition
Schoenherr
  • Czech Republic
  • 19 December 2019

The legality of on-site inspections (also known as dawn raids) carried out by the Office for the Protection of Competition at the premises of betting companies in early 2019 is currently under judicial review. For its part, the office maintains that dawn raids are an efficient tool for investigating possible competition law infringements. Moreover, it recently published an information letter on dawn raids and intervention actions on its website.

New developments in competition authority's decision-making practice: whistleblowers and appointed guardians
Schoenherr
  • Czech Republic
  • 15 August 2019

The Office for the Protection of Competition recently found two companies guilty of bid rigging in a public tender. While similar bid-rigging cases occur quite frequently and generally fall within the office's purview, this case is unique because, for the first time, the office was informed about the anti-competitive behaviour by a whistleblower and appointed a guardian for one of the parties involved.

Health products distributor fined for resale price maintenance
Schoenherr
  • Czech Republic
  • 04 April 2019

The Office for the Protection of Economic Competition recently fined Czech health products supplier TCM Herbs Kc853,000 (approximately €33,500) for resale price maintenance (RPM). TCM Herbs has appealed the decision. The office has not issued an RPM decision in a long time. As such, the outcome of the review by its chair will be closely followed and hopefully indicative in terms of how (or if) the office will consider a more economic approach.

Competition office fines Booking.com €0.33 million
Schoenherr
  • Czech Republic
  • 28 March 2019

The Office for the Protection of Economic Competition recently reviewed vertical aspects of online platforms and distribution channels, ultimately fining online booking platform Booking.com approximately €0.33 million for using most-favoured-nation (MFN) clauses in its contracts with hotels. Although the decision has not yet been published, it is hoped that it will be instructive in terms of how the office examines the conditions under which MFN clauses may be considered anti-competitive.

Office for the Protection of Competition gets tougher on fines for competition law infringements
Schoenherr
  • Czech Republic
  • 18 October 2018

The Office for the Protection of Competition recently adopted new guidelines on the method of setting fines for competition law infringements. The new guidelines are intended to underline the repressive and preventive function of fines. As a result, undertakings can expect higher fines for infringements of competition rules than under the previous regime.

Competition Authority fines firm for restrictive clauses in lease agreements
Schoenherr
  • Czech Republic
  • 28 June 2018

Restrictive clauses are common in commercial lease agreements. Such clauses can limit a landlord's ability to lease property to other tenants, restrict a tenant's business activities to a certain geographical area or control the subleasing of property. Restrictive clauses in lease agreements may appear to be problem-free and reflective of the contractual freedom of the parties, which forms one of the pillars of civil law. However, when certain restrictive clauses are scrutinised, a number of issues can become apparent.

Competition Authority publishes information paper on dawn raids
Schoenherr
  • Czech Republic
  • 14 December 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
  • Czech Republic
  • 14 September 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.

Anti-competitive agreements in telecoms sector
Schoenherr
  • Czech Republic
  • 02 February 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.

New information letter on amendment to Significant Market Power Act
Schoenherr
  • Czech Republic
  • 20 October 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.

Future of private competition law enforcement
Schoenherr
  • Czech Republic
  • 03 March 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
  • Czech Republic
  • 10 December 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
  • Czech Republic
  • 09 July 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
  • Czech Republic
  • 30 April 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
  • Czech Republic
  • 12 March 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
  • Czech Republic
  • 27 November 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.

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