Decree No. 201 / 2001 Coll.

Ordinance of the Office for the Protection of Competition for a General Exemption from the Prohibition of Competition Agreements pursuant to § 3 (1) of Act No. 143 / 2001 Coll., on the Protection of Competition, for certain types of specialisation agreements

Valid Order Effective from 01.07.2001
201
DECLARATION
The competition authority
of 5 June 2001
authorising a general exemption from the prohibition of agreements distorting competition pursuant to § 3 (1) of Act No. 143 / 2001 Coll., on the Protection of Competition, for certain types of specialisation agreements
According to Section 26 (1) of Act No. 143 / 2001 Coll., on the Protection of Competition, the Authority provides:
§ 1
(1) The prohibition provided for in Article 3 (1) of Act No. 143 / 2001 Coll., on the Protection of Competition (hereinafter referred to as "the Act"), provided that the joint market share of the parties to the agreement on the market in the goods in question does not exceed 20%, does not apply to agreements which contain an obligation
(a) do not produce certain goods and at the same time take them from a competing competitor who agrees to produce and supply such goods; a competitor is a competitor operating on a relevant market or a competitor who, after a lasting increase in the prices of the goods in question, would have incurred the necessary investments or other necessary costs in order to be able to operate on the relevant market;
(b) not to produce certain goods while leaving such production to other Parties to the Agreement which agree to produce and supply such goods to the Parties to the Agreement;
(c) to produce certain goods only jointly by two or more Parties to the Agreement with the possibility of joint distribution or distribution only through a third party which is not a competing competitor; or
(d) exclusive supplies or withdrawals of goods forming the subject-matter of the Agreement, provided that at the same time they contain at least one of the commitments referred to in (a) to (c).
(2) The prohibition provided for in Article 3 (1) of the Act, provided that the joint market share of the parties to the agreement on the market of the goods in question does not exceed 20%, also does not apply to the provisions contained in the specialisation agreements which do not constitute the subject of such agreements, insofar as they are directly concerned and necessary for the implementation of those agreements (e.g. provisions on the transfer or use of industrial or other intellectual property rights).
(3) In the cases referred to in paragraphs 1 and 2, the prohibition provided for in Article 3 (1) of the Act shall also not apply to specialisation agreements where the joint market share of the parties to the agreement on the market in the goods in question at the time of the conclusion of the agreement does not exceed 20% and subsequently increases beyond that limit, provided that:
(a) shall not exceed 25% for two calendar years following the year in which the limit of 20% was first exceeded; or
(b) it shall exceed 25% for one calendar year following the year in which the limit of 25% was first exceeded.
(4) The rules for determining the market share of the goods referred to in paragraph 3 shall not be combined in such a way that the duration of the general exemption exceeds two calendar years in such cases.
§ 2
However, the prohibition under Paragraph 3 (1) of the Act applies to agreements which, although otherwise meeting the conditions set out in Section 1,
(a) determine, directly or indirectly, the prices of the goods forming the subject of the agreement; This is without prejudice to the possibility of determining the quantities of goods sold and the prices required by the Joint Undertaking producing the goods covered by the Agreement by its immediate customer, provided that the Joint Undertaking also distributes the goods,
(b) the Parties to the Agreement restrict the quantities of goods manufactured or sold forming the subject-matter of the Agreement; This shall be without prejudice to the possibility of determining the quantities of goods produced under agreements under Articles 1 (a) and 1 (b) or the volume of production of the Joint Undertaking in the case of agreements under Article 1 (c); or
(c) determine the markets to which goods forming the subject-matter of the agreement will be supplied or the persons to whom such goods may be supplied.
§ 3
By its decision, the Competition Authority may withdraw the advantages of the general exemption provided for in this Decree if, as a result of market developments, the effects of an agreement subject to a general exemption do not comply with the conditions for authorising an individual exemption under Article 8 of the Law. In particular, these may be cases where:
(a) the agreement does not deliver substantial results in terms of rationalisation or final consumers do not obtain an adequate share of the resulting benefits; or
(b) the goods covered by the specialisation agreement are not exposed on the market to effective competition from the same goods or goods considered to be interchangeable to the consumer in view of their characteristics, price and intended use.
§ 4
(1) For the purposes of this Decree, each Party to the Agreement shall include the associated persons. A common person means a person who:
(a) control and control the Party to the Agreement;
(b) controls the same person who controls the Party to the Agreement;
(c) are controlled by one or more of the persons referred to in (a) and (b),
(d) are jointly controlled by one or more of the persons referred to in points (a) to (c) and by one or more third parties.
(2) The audit shall mean the holding of a business or share in a capital of more than 50% or the right to appoint or withdraw a majority of the members of the statutory body, supervisory board, directors of a legal person or the possibility of otherwise exercising a decisive influence on the management of a legal person.
§ 5
Market shares shall be based on the ratio of the sales volume of the goods covered by the agreement for the preceding calendar year to the total sales volume of the goods on the relevant market. Where information on the value of sales volume of goods forming the subject of an agreement on a given market is not available, an estimate based on other reliable market information may be used to establish market shares.
§ 6
This decree does not apply to distribution and rental services.
§ 7
This Decree shall take effect on 1 July 2001.
Chairman:
Ing. Bednář v. r.

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Regulation Information

CitationDecree of the Office for the Protection of Competition No. 201 / 2001 Coll., authorising a general exemption from the prohibition of agreements distorting competition pursuant to § 3 (1) of Act No. 143 / 2001 Coll., on the Protection of Competition, for certain types of specialisation agreements
Regulation TypeOrder
Author-
CollectionCode of Laws
Date of Promulgation20.06.2001
Effective from01.07.2001
Effective until-
Status Valid
The regulation text is for informational purposes only.
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