The Czech Supreme Administrative Court (NSS) has upheld a fine of 5.2 million CZK that was imposed by the Czech Office for the Protection of Competition (ÚOHS) on the Language Schools Association in 2023. The association was found to have violated competition law by establishing minimum acceptable prices for language instruction aimed at public procurement processes.

This ruling specifically addresses the amount of the fine, as the NSS had already confirmed the violation of competition law in April. The association argued that the fine was excessively high, citing that ÚOHS had previously imposed fines of up to one million CZK in similar cases.

Significantly, this case marks the first time ÚOHS has imposed a fine on an association based on the total turnover of all its members for the last completed accounting period. The NSS supported ÚOHS's approach, stating that the economic strength of the association itself is not the determining factor, but rather the economic power of its member base, which reflects the real impact of the association's actions on the market.

The court also noted that the prohibited decision by the association regarding price setting poses a danger to competition comparable to traditional cartel agreements among competitors. The NSS had previously confirmed that the association had published and enforced minimum prices for language instruction among its members and pressured public procurement clients to adhere to these prices.

This conduct significantly restricted competition among the association's members and affected the competitive landscape for language education services in the Czech Republic. The association had been setting these prices since at least the second half of 2017, with regular updates to the rates. For instance, in 2018, members were required to charge at least 334 CZK per hour, which increased to 368 CZK the following year. The association actively monitored compliance with these rates during its meetings and urged members to correct any deviations.