Czech Republic updates

Competition & Antitrust

Contributed by Schoenherr
Constitutional Court upholds Act on Significant Market Power but declares 3% limit on marketing payments unconstitutional
  • 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
  • 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
  • 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
  • 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
  • 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.

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