CZECH REPUBLIC Law and Practice Contributed by: Robert Neruda, Roman Světnický, Martin Rott and Robert Nersesjan, HAVEL & PARTNERS
• if the undertakings concerned have low mar - ket shares – none of the undertakings con - cerned operate in the same relevant market, or their combined share in that market does not exceed 15% in the case of horizontal mergers, and at the same time none of the undertakings concerned operates in a market vertically connected to the relevant market in which another undertaking concerned oper - ates, or their share in every such market does not exceed 25% (vertical merger). The OPC has full discretion in requesting a full notification despite the undertakings fulfilling the criteria for this simplified notification. The OPC employs the SIEC (significant impedi - ment to effective competition) test, similar to the one employed by the European Commission under the EU Merger Regulation. As a result, a concentration will be considered incompatible with the Czech market where it would signifi - cantly impede effective competition in the mar - ket, in particular (but not exclusively) as a result of the creation or strengthening of a dominant position. The OPC takes a range of factors into considera - tion, including efficiencies that may be gained from the merger (efficiency defence) and/or whether one of the parties is likely to fail as an independent business (failing firm defence). 4.2 Markets Affected by a Transaction The OPC reviews the market definitions pro - vided by the notifying parties when determining which markets may be affected by the transac - tion. It also considers alternative markets based 4. Substance of the Review 4.1 Substantive Test
on the OPC’s decisional practice, as well as the practice of the European Commission, the EU Courts’ decisional practice and the decisional practice of competition authorities in other EU member states. It takes market reports and the parties’ own internal documents into account. In cases where the market definition is complex, the OPC may ask competitors and customers their views on the relevant market definition. Special attention is paid to markets where both parties perform economic activity (horizontal overlaps), but vertically connected markets are also closely examined by the OPC. There is no de minimis rule. In general, com - petitive concerns are unlikely to arise where the use of the simplified procedure is possible. An affected market exists if the combined horizontal market share reaches 15% or more, or if one of the parties concerned has a market share of at least 25% in a vertically overlapping market. 4.3 Reliance on Case Law Besides its own decisions, the OPC generally relies on the European Commission’s decision - al practice when defining relevant markets. In cases where there are no decisions of the OPC or the Commission, the OPC takes into account decisions of other member states’ competition authorities, without clear preference for any jurisdiction. 4.4 Competition Concerns In its assessment of concentrations, the OPC focuses primarily on the following aspects: • the necessity of the preservation and further development of effective competition in the affected market(s); • the structure of all markets affected by the concentration;
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