18.03.2025 | Croatian competition authority
The Czech Office for the Protection of Competition, under the leadership of Deputy Head Kamil Nejezchleb, is actively working to improve market competition and prevent anti-competitive practices. The Office is particularly focused on public procurement and the food supply chain, emphasizing collaboration with law enforcement to identify and address breaches of competition laws.
To raise awareness about anti-competitive behavior, the Office has implemented educational initiatives, including training and e-learning programs. These resources are crucial for businesses involved in public procurement, as they help mitigate risks associated with practices like bid-rigging. The Office has also expanded its leniency program to include vertical agreements, enhancing its ability to detect anti-competitive behavior, especially in cases of resale price maintenance.
Investigating bid rigging and cartel activities presents significant challenges for the agency, as these practices are often concealed. The Office employs various detection methods, including analyzing bidders' quotes and historical data, and collaborates with law enforcement to identify collusion. Certain sectors, such as construction and transport, are more susceptible to bid rigging, prompting the agency to prioritize enforcement in these areas.
In light of rising food prices, the Authority conducted a sector inquiry into key products, finding no evidence of competition distortion despite the oligopolistic nature of these sectors. The price increases were attributed to external factors rather than a failure in market competition. The Office is also focusing on compliance with the Czech Unfair Trading Practices (UTP) Act, having opened multiple administrative proceedings related to contract deficiencies and late payments.
Recent cases, such as sanctions against Košík.cz for inadequate contract documentation, highlight the importance of clear and compliant contracts in the food supply chain. The Office has alternative measures for resolving violations, including commitments and settlement procedures, which can lead to quicker resolutions and reduced penalties for businesses.
As the Office prepares to implement a new fining methodology in 2024, competition law advisors must inform clients about the benefits of compliance measures and the leniency program to mitigate potential fines. The integration of technology, including AI and big data analytics, is expected to enhance the agency's ability to detect collusion and improve its investigative processes.
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