Antitrust: Commission requests Slovak Republic to bring Slovak Competition Act into conformity with EU law
The European Commission has formally requested the Slovak Republic to amend a provision of the Slovak Competition Act that limits the Slovak Competition Authority’s power to apply Articles 81 (prohibiting cartels and other restrictive business practices) and 82 (prohibiting abuses of a dominant position) of the EC Treaty to anticompetitive behaviour in the electronic communications, energy and postal sectors.
The request takes the form of a reasoned opinion, the second step of EC Treaty infringement procedures (Article 226). Unless the Slovak Republic brings its legislation into conformity with EU law within two months of receipt of the reasoned opinion, the Commission may decide to refer the case to the European Court of Justice.
Competition Commissioner Neelie Kroes commented: “It is important that the Slovak legislation is changed quickly to ensure that the Slovak Competition Authority can apply EU competition rules without restrictions. Empowering national competition authorities to apply EU competition rules was an important part of our antitrust reform, and it is vital that these authorities are allowed to get on with the job.”
On 6 June 2008 the Commission sent a letter of formal notice under EC Treaty infringement procedures (Article 226) to the Slovak Republic because Section 2(6) of the Slovak Competition Act limits the ability of the Slovak Competition Authority to effectively apply Articles 81 and 82 of the EC Treaty to anticompetitive behaviour which falls within the competence of a regulatory authority, such as the Slovak Telecommunications Office. The contested law thereby excludes the application of the Competition Act to behaviour that would breach the Slovak regulatory framework for electronic communications, energy and post. This is contrary to EU law, which requires parallel application of competition law and regulation.
Therefore, in the letter of formal notice, the Commission sought information from the Slovak authorities on whether the Slovak Republic had met its obligations under Article 10 of the EC Treaty in combination with Articles 35 and 5 of Regulation 1/2003.
The Slovak Republic has informed the Commission that the consultation procedure on a draft amendment to the Competition Act has been launched, but it has not informed the Commission of the entry into force of any relevant legislative changes. Until any change to the law is adopted and a date for entry into force set, the Commission cannot determine whether or when that would put an end to the infringement.
The Slovak authorities have two months from receipt of the reasoned opinion to inform the Commission of measures taken to bring its legislation into conformity with EU law.
