CZECH REPUBLIC Law and Practice Contributed by: Robert Neruda, Roman Světnický, Martin Rott and Robert Nersesjan, HAVEL & PARTNERS
4.7 Special Consideration for Joint Ventures Joint ventures are primarily assessed in the same way as other types of concentrations captured by the merger control regime, primarily by the SIEC test (see 4.1 Substantive Test ). In addition, the OPC may also analyse whether the joint venture gives rise to spillover effects, by enhancing the risk of co-ordination between the parent companies. This applies in cases where both parent companies are active in mar - kets outside the joint venture or operate in the upstream or downstream markets of another parent. The OPC assesses the risk of co-ordi - nation between the parent companies under the provision on anti-competitive agreements between undertakings. 5. Decision: Prohibitions and Remedies 5.1 Authorities’ Ability to Prohibit or Interfere With Transactions The OPC is able to prohibit a transaction that would result in a substantial distortion of com - petition in the relevant market by creating or strengthening a dominant position of the under - takings concerned. The OPC does not need an approval from the court or any other body/ authority to issue a prohibition decision. The OPC may also revoke an approval of a transaction if the parties do not comply with the remedies set by the approval decision, and may prohibit a concentration and order a divestment where the concentration has been implemented without prior approval from the OPC.
• the market shares of the parties to the con - centration in such markets, and their eco - nomic and financial power; • legal and other barriers to entering relevant markets; • alternatives available to suppliers and cus - tomers of the parties; • the development of supply and demand in the affected markets; • the needs and interests of consumers; and Although the notification questionnaire contains a dedicated section in which evidence of effi - ciencies may be presented, the OPC considers economic efficiencies that may be gained from the merger only in a limited extent. In any case, the claimed efficiencies must be directly created by the concentration and not achievable through any other, less anti-compet - itive means. In addition, they must be quanti - fiable and verifiable to a reasonable degree of • research and development. 4.5 Economic Efficiencies When assessing a concentration under the Czech merger control regime, the OPC only considers competition-related issues. The deci - sion of whether a merger should be cleared or prohibited is thus based solely on competition- related questions – primarily the SIEC test. The CCA does not allow the OPC to take any non- competition issues into account. The Czech FDI regime, effective from May 2021, is separate from the merger control rules (see 9. Foreign Direct Investment/Subsidies Review ). certainty and benefit consumers. 4.6 Non-Competition Issues
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