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.
• country of origin; • customs value; and • applicable preferential trade arrangements. Goods moving within the European Union are gener - ally not subject to customs duties due to the principle of free movement of goods. Higher tariffs and protective measures are commonly associated with sensitive sectors, including: • agricultural products; • food products; • textiles; • steel products; and • selected manufacturing industries. In addition to ordinary tariffs, imports may also be affected by trade defence measures such as anti- dumping duties or safeguard measures intended to protect European industries. Recent geopolitical developments, supply chain concerns and strategic trade considerations have increased the importance of customs compliance and international trade regulation for businesses operating in the Czech market. Competition law in the Czech Republic is governed primarily by the Competition Protection Act together with directly applicable European Union competition rules. Merger control seeks to prevent concentrations that could significantly restrict effective competition within relevant markets. Certain mergers and acquisitions are subject to man - datory notification where statutory thresholds are sat - isfied. The notification obligation generally applies to: • mergers between previously independent under - takings; 6. Competition Law 6.1 Merger Control Notification
• acquisitions of direct or indirect control over another undertaking; • acquisition of substantial business assets; and • creation of full-function joint ventures performing autonomous economic activities on a lasting basis. Concentration must generally be notified where one of the following turnover thresholds is met: • the combined net turnover achieved in the Czech Republic by all participating undertakings exceeds CZK1.5 billion, and at least two of the participat - ing undertakings each achieved net turnover in the Czech Republic exceeding CZK250 million; or • the net turnover achieved in the Czech Republic by at least one participating undertaking exceeds CZK1.5 billion and the worldwide net turnover achieved by another participating undertaking exceeds CZK1.5 billion. However, an amendment to the Czech Competition Act is currently under discussion and may modify the existing merger control regime. Under the current gov - ernmental proposal, the standard notification thresh - olds would increase to a combined Czech turnover of CZK2.5 billion and at least CZK350 million Czech turnover achieved by at least two participating under - takings. At the same time, the proposed amendment would introduce a “call-in” mechanism enabling the Czech Competition Authority (ÚOHS) to require noti - fication even for transactions falling below the statu - tory thresholds where the transaction could potentially result in a substantial distortion of competition. The assessment is therefore primarily turnover-based, while market shares are generally relevant only for the substantive competition analysis rather than jurisdic - tional filing thresholds. The concept of control is interpreted broadly and may arise not only through share acquisitions but also through contractual arrangements or other mecha - nisms allowing decisive influence over commercial activities. Joint ventures may also become subject to notifica - tion where the joint venture performs independent and
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