The Brno Regional Court has upheld a fine of 5.2 million CZK imposed by the Czech Office for the Protection of Competition (ÚOHS) on the Association of Language Schools. The fine was issued in 2023 for the association's violation of competition law by establishing a minimum acceptable price for language instruction services used in public procurement.

The Association, which represents around 30 language schools, publicly announced and enforced this price among its members while advocating for it with public procurement authorities. The court confirmed that this conduct significantly restricted competition among the association's members and affected the competitive landscape of language education services in the Czech Republic.

Since at least the second half of 2017, the Association had been setting these prices, updating them over time. For instance, in 2018, members bidding for public contracts were required to charge at least 334 CZK per hour for language instruction, which increased to 368 CZK the following year. The Association regularly discussed pricing at its meetings and monitored compliance among its members.

This case marks the first time the ÚOHS has imposed a fine for prohibited decisions made by an association of competitors based on the turnover of its members, following a change in competition law in 2009. Previously, fines could only be based on the assets of the association, which are often minimal compared to the members' turnover.

The Brno Regional Court confirmed the appropriateness of the ÚOHS's approach, stating that calculating fines based on member turnover better captures the potential benefits of the infringing conduct and ensures effective and proportionate penalties that reflect the economic strength of the involved entities.

Initially, the Association was to pay a fine of 9.12 million CZK, but this was reduced to 5.2 million CZK due to the shortened duration of the infringement, which was determined to have occurred from October 13, 2017, to January 16, 2020.