The Office repeatedly sanctioned the undertaking Sokolovská uhelná for anticompetitive agreements, the fine was decreased

The Chairman of the Office for the Protection of Competition (hereinafter referred to as “the Office”) Mr Petr Rafaj has issued a revised second-instance decision on anticompetitive agreements on the export prohibition by the undertaking Sokolovská uhelná, legal successor, a.s. (hereinafter referred to as “SU”). Previously imposed sanction has been slightly decreased to CZK 15,987,300 (approximately EUR 592,122).

By the decision from the year 2010 a fine of CZK 17,283,000 (approximately EUR 640,111) was imposed on SU for concluding and fulfilling prohibited agreements on export prohibition that aimed at distorting the competition in the market of brown coal briquettes, brown energetic coal, and brown graded coal in the Czech Republic and in the European Union. However, the decision was canceled by the administrative court due to incorrect assessment of responsibility of party to the proceeding and its legal predecessor before 1/5/2004. 

Pursuant to the new second-instance decision the SU and its legal predecessor Sokolovská uhelná, a.s. breached the competition law when concluding prohibited agreements with their distributors and end purchasers of brown coal and brown coal briquettes within the period from 1/5/2004 to 27/8/2009. The anticompetitive behavior was conducted also by keeping in force and fulfilling agreements concluded in the period from 30/12/1997 to 1/5/2004. 

Within mentioned agreements purchasers committed themselves not to export brown coal and brown coal briquettes from the territory of the Czech Republic supplied by the party to the proceeding and its legal predecessor. Also the fuel could not be traded in a manner to facilitate the export. The aim of these agreements was to infringe competition and they might have led to distortion of competition in the market of brown coal briquettes, brown energetic coal and brown graded coal in the Czech Republic and in the European Union. Beside the breach of the Czech Act on the Protection of Competition also the Article 81 of the Treaty establishing the European Community (Article 101 TFEU) was breached as the conduct might have had an impact on the trade among the EU Member States. 

Moreover, the Chairman of the Office concluded that the infringement of the national law conducted only from 1/5/2004 might be considered to be an aggravating circumstance when setting the fine. Therefore, the sanction was decreased by 9 % to final amount of CZK 15,987,300 (approximately EUR 592,122)

International and External Relations

14/101/HS042 - R8/2010