Participants in prohibited cartels face actions for damages

14. June 2016

This year, the Collection of Laws will be extended by a law providing for the compensation for damage in competition. By the end of 2016, it is actually necessary to incorporate into Czech law Directive 2014/104/EU on certain rules regulating the actions for damages pursuant to domestic law in the case of infringement of competition regulations of member states and the EU.  

At present, it is possible to claim damages caused by the violation of competition regulations at Czech courts in accordance with the general rules providing for the compensation for damage. Such actions, however, are rather scarce. Nevertheless, the adoption of a separate law on the compensation for damage in competition may actually change the situation and competitors will have to be aware not only of public sanctions imposed by the Office for the Protection of Competition but also of the prospective claims for damages lodged by their competitors or customers.

The new law is to regulate the scope of damages as well as to embed the presumption of occurrence of damage, independently regulate the course of procedural periods, including statute of limitation, and also some aspects of evidence proceedings. The aim of the law is to provide a more efficient protection to those aggrieved by an infringement of competition rules and thus strengthen the protection of competition upon private law. The comment procedure relating to the draft bill has been recently completed and the bill will be submitted for approval. Given the term of the Directive implementation, the bill is expected to come into effect no later than at the end of 2016.