The Czech Office for the Protection of Competition (ÚOHS) has submitted proposals for amendments to two significant laws under its jurisdiction, namely the Competition Act and the Public Procurement Act. These changes are designed to improve market competition and accelerate public investment processes, benefiting entrepreneurs, public administration, and citizens in the long run.

According to ÚOHS Chairman Petr Mlsna, the proposed changes will enhance the state's ability to effectively respond to market issues and streamline procurement reviews. The goal is to achieve greater predictability, speed, and efficiency, which are crucial for both public administration and the business environment.

The amendment to the Competition Act introduces a new competition tool that allows ÚOHS to intervene in markets where competition has long been ineffective, even in the absence of classic competition violations like cartels or abuse of dominance. If market dysfunction is proven through a sector inquiry, the authority can issue general measures to open the market to competition, such as mandating data access, setting non-discriminatory standards, or modifying contractual terms. This approach mirrors practices already adopted by some EU member states. In extreme cases, ÚOHS may order the divestiture of part of a business.

Additionally, the amendment allows for sanctions to be imposed directly on managers responsible for illegal cartel agreements, aiming to increase personal accountability and deterrence against anti-competitive agreements that inflate prices for goods and services. These individuals will also have the option to apply for leniency, potentially reducing or waiving penalties in exchange for cooperation during investigations.

After more than 20 years, ÚOHS proposes to update the turnover thresholds for mandatory merger notifications and increase the fee for submitting merger approval requests. This change is expected to reduce the number of transactions that require administrative review without market impact, allowing the authority to focus on cases with real competitive significance. A new call-in model will also be introduced, enabling the review of mergers that do not meet turnover thresholds but may threaten competition, which was previously outside ÚOHS's purview.

A significant portion of the amendment also addresses the Public Procurement Act, primarily aimed at expediting reviews and limiting inter-institutional delays. The authority proposes measures, such as changes to deposits, to encourage participants to accept first-instance decisions and avoid unnecessary appeals. If an appeal is filed, the submitter will be required to state all objections upfront, rather than supplementing them later. The ÚOHS Chairman will also make final decisions in administrative proceedings regarding ongoing procurement processes, preventing cases from reverting to the first instance and prolonging administrative procedures.

Furthermore, the amendment responds to practical needs in crisis situations (e.g., natural disasters) by allowing quicker procedures for contracting authorities in negotiations without publication. The importance of digitizing the agenda is also emphasized, with options for submitting proposals via a self-service portal and accessing administrative files remotely. More details on the changes in competition law can be found on the ÚOHS website.