Czech Republic/EU, 2007

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Score = 24

Governed by: EU law: Articles 81 and 82 of the Treaty Establishing the European Communities (Rome Treaty), Regulation 1/2003 of 16 December 2002 [1] and the Czech Competition Act: Consolidated Act on the Protection of Competition Act No. 143 Coll. of 4 April 2001 as amended by Acts Nos. 340/2004 Coll. of 4 May 2004 and 484/2004 Coll. of 5 August 2004(hereinafter referred to as “Competition Act”).[2][3]

Category Subcategory Score Comment
Scope Extraterritoriality 1 EU law (the Rome Treaty) governs whenever conduct has effects on trade between Member States pursuant to Article 3 of Regulation 1/2003.
Remedies Fines 1 Article 22 of the Czech Competition Act provides guidelines for fining.
Prison Sentences 0
Divestitures 1 Article 18(5) of the Czech Competition Act allows Commission to impose a duty to sell

interests or transfer the enterprise acquired by an unapproved concentration


Private Enforcement 3rd Party Initiation 0
Remedies Available to 3rd Parties 1 Private enforcement of Articles 81 and 82 of the Rome Treaty is mandated and encouraged by the European Commission.[4]
3rd Party Rights in Proceedings 0
Merger Notification[5] Voluntary 0
Mandatory 3 Article 15(2) of the Czech Competition Act requires notification of mergers, depending on turnover.
Pre-merger 2 Article 15(3) of the Czech Competition Act says that the notification must be filed prior to the conclusion of the agreement or prior to acquisition of control.
Post-merger 0
Merger Assessment Dominance 1 Article 17(1) of the Czech Competition Act lists market share as a factor in merger assessment.
Restriction of Competition 1 Article 17(1) of the Czech Competition Act lists the necessity of fostering competition as a factor in merger assessment.


Public Interest (Pro D) 1 Article 17(1) of the Czech Competition Act list the needs and interests of consumers as factors in merger assessment and will allow a merger if it is to the advantage of consumers.
Public Interest (Pro Authority) 0
Other 0
Efficiency 0
Dominance Limits Access 1 Article 82(b) of the Rome Treaty prohibits limiting access.
Abusive Acts 1 Article 82 of the Rome Treaty prohibits abuse of dominant position.
Price Setting 1 Article 82(a) of the Rome Treaty prohibits price setting.
Discriminatory Pricing 1 Article 82(c) of the Rome Treaty prohibits discriminatory conditions.
Resale Price Maintenance 1 Article 82(a) of the Rome Treaty prohibits resale price maintenance.
Obstacles to Entry 1 Article 82 of the Rome Treaty prohibits anti-competitive pricing schemes.
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 Article 81(1)(a) of the Rome Treaty prohibits price fixing.
Tying 1 Article 81(1)(e) of the Rome Treaty prohibits tying.
Market Division 1 Article 81 of the Rome Treaty prohibits customer allocation clauses.
Output Restraint 1 Article 81(1)(b) of the Rome Treaty prohibits limiting production.
Market Sharing 1 Article 81(1)(c) of the Rome Treaty prohibits market sharing.
Eliminating Competitors 1 Article 81(1) of the Rome Treaty prohibits agreements that have the purpose or effect of eliminating competition.
Collusive Tendering/Bid-Rigging 1 Article 81 of the Rome Treaty prohibits bid-rigging.[6]
Supply Refusal 1 Article 81(1)(b) of the Rome Treaty prohibits supply refusal.
Efficiency Defense 1 Article 81(3) of the Rome Treaty allows an efficiency defense.

References

  1. Available at http://ec.europa.eu/comm/competition/antitrust/legislation/legislation.html
  2. full text of statute found at Czech Republic Office for the Protection of Competition website, http://www.compet.cz/fileadmin/user_upload/Legislativa/legislativa_EN/Act_143_2004.doc
  3. The statute has been further amended by Act Nos. 340/2004 Coll. of 4 May 2004, 127/2005 Coll. of 22 February 2005, 361/2005 Coll. of 19 August 2005, and 71/2007 Coll. of 4 April 2007. However, none of these further amendments affect the score as of August 5, 2004 as these amendments are primarily procedural rather than substantive.
  4. http://ec.europa.eu/comm/competition/antitrust/actionsdamages/executive_summaries/czech_republic_en.pdf.
  5. The National Competition Authority will assess mergers under the National Competition Act. If the concentration affects trade between the Member States, the European Commission will assess the merger under Regulation 139/2004. See the coding for the European Commission for those provisions.
  6. http://www.eujapan.com/europe/seminar_tokyo_mehta1_april08.pdf