Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

In application of Article 43 of the Act No 71/1967, the Office may order preliminary measures ordering that the parties perform an action or abstain from an action. Preliminary measures may be annulled as soon as the reasons for their implementation cease to exist. Otherwise, the measures cease to be effective from the date of the final decision. …

Interim relief

Under Article 21 of the Act, proceedings may be initiated by the notification of an agreement for approval, or by the Office ex officio. The conduct of proceedings is governed by a combination of general administrative provisions set out in the Act No 71/1967 on Administrative Proceedings and by the provisions of the Competition Act.

Under new paragraph 5 of Article 21, introduced by the 2012 reform, the investigation is based on a written authorization issued by the Chairman of the Office or another person empowered to do so in accordance with the Office's internal regulations. The authorization must contain the name, position and signature of its author, the legal provisions under which the investigations are to be conducted, identify the premises that will be subject to investigation, indicate the subject-matter of the investigation and the date of its commencement, as well as the name of the members of the Office staff authorized to carry out the investigation. 

Over the course of an investigation, both undertakings and Government administrative entities are required to provide the Office with accurate information and documents. Strict time-limits govern the proceedings under the Act, and generally the Office's powers are similar to those of the European Commission under Regulation No 1/2003. Thus, the Office has the authority to enter any premises, land and means of transport, to examine books and records, take copies or ask for on-the-spot oral explanations. Where an applicant has requested an investigation, the Office is required to notify the applicant in writing of its acceptance, rejection or referral of the complaint to another body.

Following the 2 October 2014 ruling of the ECHR in the Delta Pekárny case, Act 293/2016 amended the Competition Act in order to grant undertakings a right to request a separate review not only of the authorization to carry out dawn raids, but also of the conduct of the inspection itself, without having to wait for the final decision of the Office (Article 21f(7)). In late 2017, the Office published a guidance paper on dawn raids detailing the rights of its agents and the obligations of undertakings during such inspections. While the Office particularly stresses the duty of undertakings to fully cooperate with its agents, it has also undertaken to provide a clearer definition of the scope of its investigations to avoid accusations of carrying out fishing expeditions.

Amendment No. 226/2023 acknowledges the legitimacy of using transcripts from wiretaps conducted by the Czech police during criminal investigations of cartel agreements or collusive behavior aimed at distorting economic competition.

Complaints and investigations

A third party with rights or obligations that could be significantly affected by a decision of the Office may ask to be granted status as a party to the proceedings (Article 21a(1)). Where the Office deems it necessary, or upon the request of a party, the Office may hold hearings prior to taking a final decision. The Administrative Code applies in proceedings before the Office. Interested third parties must declare an intention to exercise their rights as parties involved in the proceedings. If they do so, they have the right to submit written opinions to be read during the hearing. However, involved parties have no right to adjust the scope of or terminate the proceedings. The 2016 amendment now also provides that the infringing undertakings may request full access to the file, including business secrets, where the documents containing the latter have been or will be used as evidence. However beneficiaries must be informed in advance of the consequences of any breach of confidentiality regarding those documents and sign an aknowledgement of such a notification (Section 21c(3)). Under the general provisions of the Administrative Procedure Act, the proceedings must be completed within 30 days and in complicated cases within 60 days. In the event even the 60-day period is not sufficient for the Office to terminate the proceedings, the period may be extended by the Chairperson of the Office. 

  The Office can decide to terminate proceedings if the commitments offered by the parties are considered sufficient. In addition, the 2012 reform formalized the Office's settlement practice. Thus, under new Article 22ba(2), 15 days maximum after the issuing of the Statement of Objections, an undertaking may inform the Office it admits liability for the infringement in exchange for a 20% fine reduction. The Office detailed the formal rules of its settlement procedure in a notice published on 8 November 2013. However, Amendment No. 226/2023 introduces changes regarding settlements, granting more discretion in their use. Fine reductions will now vary between 10 to 20%, with the possibility of imposing a ban on public contracts for cartel participants involved in bid-rigging, limited to one year.The exact reduction percentage and ban duration will be determined by the CCA based on procedural efficiencies achieved, considering factors such as settlement duration, negotiation frequency, and case complexity. Additionally, hybrid settlements are now permitted, and the amendment allows public authorities suspected of competition law violations to benefit from settlements as well.

  The Office maintains a cartel register of agreements that have been finally approved, or have had an exemption prolonged or revoked. In addition to the name and address of the business, the register includes a document regarding the agreement, the effective date and duration of the exemption and any conditions upon which it was granted. The cartel register is open to the public.

Under the updated regulations (Amendment No. 226/2023), complainants’ identities will remain undisclosed in the administrative file if protection is requested from the CCA. Documents and information provided by the complainant will be stored separately until objections are raised.

Proceedings before the Office for the Protection of Competition

In application of Article 43 of the Act No 71/1967, the Office may order preliminary measures ordering that the parties perform an action or abstain from an action. Preliminary measures may be annulled as soon as the reasons for their implementation cease to exist. Otherwise, the measures cease to be effective from the date of the final decision.

In addition to lodging a complaint before the Office, an undertaking which has suffered damage as a result of anticompetitive behavior may also bring an action before the courts requesting damages for injury suffered and a cessation of that behavior. Such actions are heard by the appropriate regional court. The Czech Republic has transposed EU Directive No 2014/104 of 26 November 2014 on damages actions for competition law infringements with Act 262/2017 of 20 July 2017.

Furthermore, the July 2023 Amendment has incorporated the provisions of the ECN+ Directive (Directive (EU) 2019/1 of the European Parliament and of the Council).

Global Competition Law

151. Interim relief

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Les notions juridiques connexes

151. Interim relief

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise