Communication from the Ministry of Foreign Affairs No. 233 / 1996 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of Decision No 1 / 96 Association Councils between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, on implementing rules for the application of the competition provisions
Valid
International Treaty
Effective from 30.01.1996
Text versions:
02.09.1996
233
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs announces that Decision No 1 / 96 was signed in Brussels on 30 January 1996. Association Councils between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, of 30 January 1996, adopting implementing rules for the application of the competition provisions referred to in Article 64 (1) (i), (1) (ii) and (2) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, and in Article 8 (1) (i), (1) (ii) and (2) of Protocol No 2 to this Agreement for the products of the European Coal and Steel Community (ECSC) (1)
Decision No 1 / 96 entered into force on the date of signature.
Czech version The decision shall be made simultaneously.
DECISION No 1 / 96
Association Councils between the European Communities and their Member States, of the one part
and the Czech Republic, of the other part
of 30 January 1996
adopting implementing rules for the application of the competition provisions referred to in Article 64 (1) (i), (1) (ii) and (2) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, and in Article 8 (1) (i), (1) (ii) and (2) of Protocol 2 to this Agreement for ECSC products
The Association Council,
Whereas:
Having regard to Protocol No 2 on ECSC products annexed to the abovementioned Europe Agreement, and in particular Article 8 (3) thereof,
and taking into account Article 64 (3) of the Europe Agreement, which provides that the Association Council shall adopt, by decision, the necessary rules for the implementation of paragraphs 1 and 2 of this Article within three years of the entry into force of this Agreement,
and taking into account Article 8 (3) Protocol No 2 annexed to the Europe Agreement, which provides that the Association Council shall adopt, by decision, the necessary rules for the implementation of paragraphs 1 and 2 of this Article within three years of the entry into force of this Agreement,
Decision as follows:
Sole Article
The detailed rules for the application of the competition provisions referred to in Article 64 (1) (i), (1) (ii) and (2) of the Europe Agreement establishing an association between the European Communities and the Member States, of the one part, and the Czech Republic, of the other part, of Article 8 (1) (i), (1) (ii) and (2) of Protocol 2 to the ECSC Agreement, as set out in the Annex to this Decision, are adopted.
Dane in Brussels, 30 January 1996
G. Testa v. r.
J. Final v. r.
The Secretaries
For the Association Council:
J. Zieleniec v. r.
The President
Annex
IMPLEMENTING RULES
for the application of the competition provisions referred to in Article 64 (1) (i), (1) (ii) and (2) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, and in Article 8 (1) (i), (1) (ii) and (2) of Protocol 2 to the ECSC Agreement
General principle
Cases concerning agreements between undertakings, decisions of associations of undertakings and concerted practices between undertakings whose object or effect is to exclude, restrict or distort competition, as well as abuse of a dominant position in the territory of the Community or of the Czech Republic as a whole or in a substantial part thereof which may affect trade between the Community and the Czech Republic shall be dealt with in accordance with the principles contained in Article 64 (1) and (2) of the Europe Agreement.
For this purpose, these cases are discussed by the Commission of the European Communities (DG IV) on the Community side and the Ministry of Competition of the Czech Republic (MHS) on the Czech side.
The Commission's and MHS's competence to deal with these cases will be based on existing rules of relevant Community and Czech legislation, including those where these rules are applied to undertakings located outside the relevant territory.
Both institutions will deal with these cases in accordance with their own substantive legislation and in the light of the provisions set out below. The relevant substantive legislation means the competition rules of the Treaty establishing the European Community, as well as the Treaties establishing the European Coal and Steel Community, including secondary competition legislation for the Commission and the Czech Law on the Protection of Competition for the MHS.
ECONOMIC ACTIVITIES UNDER THE EC TREATY
Competition authorities' competition
Cases falling within the scope of Article 64 of the Europe Agreement which may affect both the Community market and the Czech market and which could fall within the competence of both competition authorities will be dealt with by the Commission and the MHS in accordance with the rules contained in this Article.
2.1. Notification
2.1.1 The competition authorities shall notify each other of those cases which they consider and which, according to the general principle laid down in Article 1, are clearly also within the competence of the other authority.
2.1.2. This situation may arise in particular in cases involving activities which:
- include anti-competitive activities carried out in the territory under the responsibility of the other authority,
- are important for the enforcement of the second competition authority
- concern corrective measures which would require or prohibit action in a territory falling within the competence of the other authority.
2.1.3. The notification referred to in this Article shall include sufficient information to enable the receiving party to assess provisionally any impact on its interests. Copies of notifications shall be submitted regularly to the Association Council under the Europe Agreement.
2.1.4. The notification shall be made in advance as soon as possible and at the latest during the investigation period, but with sufficient time before the agreement or decision is taken, in order to facilitate comments and consultations and to allow the managing authority to take into account the views of the other authority, as well as to take corrective action that may be taken under its right to resolve the case.
2.2 Consultation and mutual understanding
Whenever the Commission or the MHS consider anti-competitive activities carried out within the territory of the other authority to be significantly affecting the relevant interests of the party concerned, they may request consultations with the other authority or may require the competition authority to initiate any appropriate procedures with the intention of taking corrective action in accordance with its anti-competitive legislation. This is without prejudice to any procedure under the competition laws of the requesting party and is not hindered by total freedom in the final decision-making of such an institution.
2.3. Finding conformity
The competition authority thus addressed shall fully and appropriately consider the views and factual materials provided by the requesting authority and shall in particular consider the nature of the anti-competitive activities of the participating undertakings under consideration and the alleged harmful effects on the relevant interests of the requesting party.
The competition authorities which carry out consultations under this Article shall endeavour, without prejudice to their rights and obligations, to seek a mutually acceptable solution in view of the relevant important interests.
Competence of only one competition authority
3.1 Cases falling within the exclusive competence of one competition authority in accordance with the principle laid down in Article 1, which may affect the important interests of the other Party, shall be treated in the light of the provisions laid down in Article 2, taking into account the principles set out below.
3.2 In particular, whenever one competition authority carries out an investigation or proceeding in a case which is found to affect the interests of the other party, the proceedings of the executing authority shall report the case to the other authority without formally requesting notification by the other authority.
Request for information
Whenever a competition authority is aware of the fact that a case which also or only falls within the competence of the other body clearly affects the important interests of the first party, it may request information on that case from the executing authority.
The managing authority shall provide sufficient information to the extent possible and in good time during the procedure before the decision or agreement is taken so that the views of the requesting authority can be taken into account.
Confidentiality and confidentiality of information
5.1 In the light of Article 64 (7) of the Europe Agreement, none of the competition authorities may be required to provide information to the other authority if disclosure of such information to the requesting authority is prohibited by the law of the authority holding the information or would not be compatible with the relevant interests of the party whose authority holds the information.
5.2 Each institution agrees to maintain to the greatest extent possible the confidentiality of all the information provided to it by the other authority.
Block exemptions
When applying Article 64 of the Europe Agreement, as provided for in Articles 2 and 3 of these Implementing Rules, competition authorities shall ensure that the principles contained in the Regulations on valid block exemptions in the Community are fully applied. The MHS shall be informed of any procedure concerning the acceptance, revocation or amendment of block exemptions by the Community.
Where such block exemption regulations meet with serious objections from the Czech Party and in the light of the approximation of legislation provided for by the European Agreement, consultations shall be held within the Association Council, in accordance with the provisions contained in Article 9 of these Implementing Rules.
The same principles will apply with regard to other significant changes in competition policy of the Community or the Czech Republic.
Merger control
In relation to mergers covered by Council Regulation (EEC) No 4064 / 89 of 21 December 1989 on the control of concentrations between undertakings and having a significant influence on the Czech economy, the MHS will be entitled to express its views during the proceedings in accordance with the deadlines set out in the abovementioned Regulation. The Commission shall give due consideration to this view, without prejudice to any procedure under the relevant competition laws of both parties.
Activities of negligible importance
8.1 Anti-competitive activities which have a negligible impact on trade between the parties or on competition fall outside the scope of Article 64 (1) of the Europe Agreement and are therefore not to be discussed under Articles 2 to 6 of these Implementation Rules.
8.2 A negligible influence within the meaning of paragraph 8.1 is generally assumed when:
- the total annual turnover of the undertakings involved does not exceed ECU 200 million, and
- the goods or services which are the subject of an agreement, together with other goods or services of the participating undertakings, which are considered equivalent by the user in view of their characteristics, price and intended use, do not represent more than 5% of the total market for such goods or services in the territory of the common market affected by the agreement and the Czech market affected by the agreement.
Association Council
9.1. Whenever the procedures referred to in Articles 2 and 3 above do not lead to a mutually acceptable solution, as in other cases expressly referred to in these Implementing Rules, an exchange of views shall take place at the request of one of the Parties within three months of the request of the Association Council.
9.2 Following this exchange of views or the expiry of the period referred to in paragraph 9.1, the Association Council may adopt appropriate recommendations to settle such cases without prejudice to Article 64 (6) of the Europe Agreement. In such recommendations, the Association Council may take into account any negligence of the requested authority, giving its opinion to the requesting authority within the time limit referred to in paragraph 9.1.
9.3 Such procedures in the Association Council shall be without prejudice to any procedure under the competition laws in force in the territory of both Parties.
Negative conflict of competence
When both the Commission and the MHS consider that neither of them is competent to discuss the case on the basis of their right, an exchange of views shall take place at the request of the Association Council. The Community and the Czech Republic will endeavour, with the support of the Association Council, to find mutually acceptable solutions for relevant important interests. The Association Council may make appropriate recommendations, without prejudice to Article 64 (6) of the Europe Agreement and the rights of the individual Member States of the European Communities resulting from their competition rules.
ECONOMIC ACTIVITIES UNDER THE ECSC TREATY
Treaty establishing the European Coal and Steel Community (ECSC)
The provisions contained in Articles 1 to 6 and 8 to 10 above shall also apply in respect of the coal and steel sectors as referred to in Protocol 2 to the Europe Agreement.
Administrative assistance (languages)
The Commission and the MHS shall make practical arrangements for mutual assistance or any other appropriate solution, in particular as regards translation issues.
1) The Europe Agreement establishing an Association between the Czech Republic, of the one part, and the European Communities and their Member States, of the other part, of 4 October 1993 was published under No 7 / 1995 Coll.
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 233 / 1996 Coll., on the negotiation of Decision No. 1 / 96 Association Councils between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, on implementing rules for the application of the competition provisions |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 02.09.1996 |
|---|---|
| Effective from | 30.01.1996 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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