Slovak Financial Law News 2004

Antitrust Law

Pursuant to the argumentative report, the main aim of this amendment is to react to the changes which occurred in acquis communitaire in connection with the modernisation of antitrust law on the basis of the Council Regulation (EC) No. 1/2003 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty establishing the European Community (``Treaty''). The modernization of antitrust law brings about the flexibility of assessment of agreements restricting the economic competition, decentralization of powers related to the application of Articles 81 and 82 of the Treaty in the entire common market and creation of the network of authorities that apply the Community competition rules.

The amendment specifies the definition of the term ``undertaking'' by subsuming also associations of associations of legal entities under this term and the provisions on prohibition of agreements restricting economic competition specifically for the area of intellectual property were excluded with respect to the fact that these agreements are included directly in the Act on Protection of Economic Competition (``Act'').

The Antimonopoly Office of the Slovak Republic (the ``Office'') will no longer grant an individual exemption to the agreement restricting competition which at the same time (i) contributes to improving the production or distribution of goods or to promoting the technical or economic development, (ii) provides consumers with a proportionate share of the benefit resulting therefrom, (iii) does not impose on the parties to the agreement such restrictions which are not indispensable to the achievement of goals of the agreement, and (iv) does not enable the parties to the agreement to exclude the competition in relation to the substantial part of the affected relevant market. The undertakings themselves will assess their agreement under the statutory conditions.

The prohibition of the agreement restricting competition does not relate to certain categories of agreements restricting competition that have no impact on trade between Member States, irrespective of the fact that they aim to or can result in the restriction of economic competition on the domestic market, if they at the same time meet conditions laid down under respective block exemption regulations of the Commission of the European Community (``Commission'') The Office shall issue a decision that such exemption does not relate to the agreement restricting competition, if conditions are met under which the Commission can withdraw from this exemption.

The undertakings can request the Office to issue a standpoint whether a draft agreement or proposal of the decision of association of undertakings is not regarded as an agreement restricting competition. The Office shall issue a standpoint within 30 business days or, in complicated cases, within 60 business days from the date of delivery of the request.

In case of breach of Articles 81 and 82 of the Treaty or § 4 (agreements restricting the competition) or Sec. 8 (abuse of a dominant position) of the Act, the undertaking may terminate the proceedings vis-a-vis the Office by offering to the Office the commitments that will resolve competition concerns. Then, the Office shall bind the undertaking to fulfil the offered commitments.

In connection with the reform and decentralisation of antitrust competition law under the Commission Regulation (EC) No. 1/2003, the amendment extends and specifies powers and duties of the Office relating to the investigation of breach of Articles 81 and 82 of the Treaty as well as breach of the provisions of the Act.

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