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Interventions Against Anticompetitive Conduct by Public Authorities in the Czech Republic

This article discusses anticompetitive conduct by public authorities in the Czech Republic, including the development of legislation and special powers of the Office for the Protection of Competition. It also examines foreign experience, the current situation, and proposed amendments.

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Interventions Against Anticompetitive Conduct by Public Authorities in the Czech Republic

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  1. Interventions against anticompetitiveconduct by public authoritiesMgr. Miroslav Uřičař, General Counsel, T-Mobile Czech Republic

  2. Contents • Anticompetitive conduct by public authorities • Development of the Czech legislation • Special powers of the Office for the Protection of Competition – advantages and disadvantages • Foreign experience – Slovakia • Current situation in the Czech Republic + de lege ferenda ? • Conclusion

  3. 1. Anticompetitive conduct by public authorities • Definition: • Who: state administration bodies, local government bodies, (professional self-administration bodies?) • What: restriction of economic competition (other than by collusion of competitors, abuse of dominant position, concentration of undertakings) giving undue preference to a competitor • How: various forms - measures, aid or another form • Possible solutions: • State aid • Special powers of the antimonopoly office

  4. 2. Development of the Czech legislation • Special powers of the Office for the Protection of Competition: • Act No. 63/1991 Coll. (Section 18) • Act No. 143/2001 Coll. • Draft amendment of the existing act • State aid: • Act No. 59/2000 Coll. • Act No. 215/2004 Coll.

  5. 3. Special powers of the antimonopoly office – advantages and disadvantages • Advantages • Enhanced protection of competition ? • Income from fines ? • Prevention ? • Disadvantages • Contradiction to EU law ? • Overlapping legislation ? • Bigger workload for the antimonopoly office ?

  6. 4. Foreign experience – Slovakia • In addition to the legislation concerning state aid, the Slovak Antimonopoly Office is vested with special powers. • Used in practice for a number of years, without any objections by the European Commission • Overlapping proceedings ? (state aid vs. other forms of restriction of economic competition)

  7. 5. Current situation in the Czech Republic + de lege ferenda ?Amendment discussed in Parliament • Amendment of the Act on the Protection of Competition – first reading in the Chamber of Deputies • State administration bodies while performing state-administration duties, local government bodies while performing local-government duties and state-administration duties within their delegated powers,and professional self-administration bodies while performing state-administration duties within their delegated powers must not restrict economic competition by overt support or otherwise, thereby giving undue preference to a competitor. • Fine of up to CZK 2.000.000for a breach of the prohibition … , which may be imposed on the state administration body, local government body or professional self-administration body

  8. 5. Current situation in the Czech Republic + de lege ferenda ? Government’s position • “The Government finds the submitted bill to be incongruous as it deviates from the existing concept of the protection of economic competition by proposing a non-systemic amendment whereby state administration bodies would be included in the legislation concerning the protection of economic competition against unfair competitive conduct (???) on the part of competing entities.” • “The submitted bill… does not include the authorisation of the Office …to require the necessary information and documents from the bodies that are proposed to be newly included (???) in the Act…” • “The Government believes it is necessary that a broader discussion should be held and that all (!) state administration bodies concerned should havea possibility to express their opinion on the matter…”

  9. 5. Current situation in the Czech Republic + de lege ferenda ? Previous amendment • Statement of the Minister of Industry and Trade of the Czech Republic regarding a similar proposal (27 March 2009): “… vesting the Office with new powers in relation to public authorities is not very practicable,as these are issues that involve matters concerning the European Commission. Moreover, this would presumably constitutean unconstitutional intervention in the state administration and local government, so it cannot be agreed with.”

  10. 6. Conclusion Other forms of unlawful restriction of economic competition ? Why not ?

  11. Questions ?

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