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

The Act defines a concentration as the transformation of one or more undertakings that were previously independent (Article 12). It includes the acquisition of an undertaking, or part thereof, by purchase, acquisition of stock or other interest, or any other means allowing direct or indirect control over another enterprise. The creation of a joint venture that assumes all of the functions of an in …

Concept of concentration

The control of concentrations is provided for under Section IV “Concentrations of undertakings” of the Act 143/2001 of 4 april 2001. The control instituted thereunder is in accordance with EU law.

Context

The Act defines a concentration as the transformation of one or more undertakings that were previously independent (Article 12). It includes the acquisition of an undertaking, or part thereof, by purchase, acquisition of stock or other interest, or any other means allowing direct or indirect control over another enterprise. The creation of a joint venture that assumes all of the functions of an independent economic entity on an ongoing basis is also deemed to be a concentration, whereas the temporary holdings of banks and control by office holders in cases of bankruptcy and liquidation proceedings is not.

A concentration must be notified to the Office where certain turnover thresholds set out in the Act are met.

If the total net turnover of all undertakings concerned achieved in the last accounting period in the market of the Czech Republic exceeds CZK 1,5 billion (EUR 57,255,778) and each of at least two of the undertakings concerned achieved in the market of the Czech Republic in the last accounting period a net turnover exceeding CZK 250 million (EUR 9,543,000) or, if the net turnover achieved in the last accounting period in the market of the Czech Republic, at least by one of the parties to the merger, by the acquired enterprise or a substantial part thereof, by the undertaking, over whom the control is acquired, or by at least one of the undertakings establishing a joint venture is higher than CZK 1,5 billion (EUR 57,255,778) and at the same time the worldwide net turnover achieved in the last accounting period by another undertaking concerned exceeds CZK 1,5 billion (EUR 57,255,778), the concentration must be notified to the Office (article 13).

The Act contains a statutory definition of turnover at Article 14 pursuant to which the aggregate turnover of a company is said to include subsidiaries, parent companies and jointly controlled firms. Pursuant to Article 14(4), where a concentration involves the acquisition of part of an undertaking, only the turnover of that part is taken into account with regard to the seller.

Thresholds

Pursuant to Article 17 of the Act, only concentrations that create or strengthen a dominant position as a result of which effective competition is hindered may be prohibited. In deciding whether there is an impediment to competition, the Office is required under the Act to consider “the necessity of preserving and further developing effective competition, the structure of all affected markets, the market shares and economic and financial power of the parties to the concentration, legal and other barriers to entry by other undertakings into the relevant market, the alternatives available to suppliers and users of the parties to the concentration, the development of supply and demand on the affected markets, the needs and interests of consumers, and research and development provided that it is for the advantage of the consumer and does not form an obstacle to effective competition.”

Global Competition Law

159. Concept of concentration

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Les notions juridiques connexes

159. Concept of concentration

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