CZECH REPUBLIC Law and Practice Contributed by: Petr Mlejnek, Robert Klenka, Matěj Manderla, Jan Wagner, Ivo Hartmann and Arbër Balliu, Tenacta, advokátní kancelář, s.r.o.
The specific scope of commitments varies depending on the nature of the investment and the risks identi- fied during the review process. The need for commit - ments can also be triggered by comments received from other EU member states or an opinion from the
The availability of review serves as an important safe - guard against unlawful or disproportionate administra - tive decisions. Administrative Review and Judicial Proceedings Investors may challenge decisions concerning: • procedural irregularities; • incorrect legal interpretation; • insufficient factual findings; or • disproportionality of imposed measures. Administrative courts generally examine whether authorities acted in accordance with applicable leg - islation and procedural requirements. Limits of Judicial Review Although judicial review is available, courts frequently grant authorities a relatively broad degree of discretion where matters of national security or public policy are involved. As a result, courts may show deference to govern - mental assessments involving sensitive security con - siderations. Judicial proceedings are also subject to strict rules protecting classified information. The presiding judge may allow participants access to classified parts of the file only to the extent neces - sary, provided it does not threaten state security, its sovereignty, territorial integrity, democratic founda - tions, lives or health of persons, or the activities of intelligence services or the police. Additionally, evi - dence cannot be obtained through witness testimony if relieving a person of their confidentiality obligation could threaten or seriously disrupt the operations of intelligence services or the police. Practical Implications Because judicial proceedings may require consider - able time and face evidentiary limits regarding classi - fied intelligence, investors commonly seek to resolve concerns during the review process itself rather than rely exclusively on subsequent litigation. Early identification of potential regulatory issues fre - quently reduces transaction risk and improves com - pletion certainty.
European Commission. Typical Commitments Commitments may include:
• implementation of specific security measures; • restrictions on access to sensitive information; • cybersecurity obligations; • reporting obligations; • limitations concerning technology transfers; • preservation of strategic assets within the Czech Republic; and • requirements concerning management or opera - tional arrangements. Additional obligations may arise where critical infra - structure or sensitive technologies are involved. Practical Considerations In practice, commitments are determined individually and authorities generally seek measures proportionate to the identified risks. The negotiation of commitments takes place before the matter is submitted to the gov - ernment for a resolution, and the standard statutory review period is suspended during these negotiations. Investors should therefore assess potential regula - tory concerns at an early stage and consider whether transaction structures or operational arrangements may require modification. 2.4 Right to Appeal Administrative decisions issued in connection with foreign investment screening may generally be chal - lenged through administrative procedures and judi - cial review mechanisms. However, an administrative appeal (remonstrance) cannot be filed against a deci - sion that was conditioned by a government resolution, nor can such a decision be reviewed in administra - tive review proceedings. Furthermore, a lawsuit or a request to reopen the proceedings against such a decision cannot be granted suspensory effect.
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