The first reduction of the fine in the decision of the Czech Competition Authority due to the undertaking’s compliance program – a step in the right direction?
The first reduction of the fine in the decision of the Czech Competition Authority due to the undertaking’s compliance program – a step in the right direction?

Author(s): Martin Boháček
Subject(s): Law, Constitution, Jurisprudence, Law on Economics, Commercial Law, Court case, Administrative Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: competition law; compliance; criminal law; Czech Competition Authority; reasoning of the Czech Competition Authority; Z-TRADE case;
Summary/Abstract: In early September 2022, the Czech Competition Authority (Office for the Protection of Competition) for the first time in its decision-making activity reduced the fine imposed upon a competitor due to its compliance program. This is a fundamental change, as this Office has so far refused to take the compliance program into account when considering the amount of the fine. The objective of this paper is to assess what functions a compliance program can have in competition law. Another aim is to find out what the Z-TRADE's violation of competition law was, how much the fine was reduced and under what circumstances. Related to this is the research question of whether and how the Office has defined the principles for taking this program into account in its future decision-making. In order to clarify the nature of this tool, the author has asked another research question - how the Office argued in its previous decisions for refusing to take the compliance program into account. In the Conclusion, the author assesses whether the consideration of compliance in the practice of the Czech Competition Authority is a step in the right direction. The author will use the method of qualitative analysis of jurisprudence and legal literature. While examining the links between the use of compliance in the administrative penalty for violation of economic competition and in the criminal penalty, he will use the micro-comparison method.

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