Czech Competition Act Possibly to Undergo Major Amendment: What to Expect?

The Czech Office for the Protection of Competition (“Office”) has confirmed their plans for a wide-ranging amendment to the Czech Act No. 143/2001 Sb., on the Protection of Competition (“Amendment”), signaling broader powers, new tools, and personal liability of natural persons for participation in cartels. No official draft has been published yet, but the Amendment is expected to enter the legislative process in early 2026.

Like in other European countries, these ambitions have been developing in the Czech Republic for quite some time. We reported on the Office’s aims in our November 2024 update, but their latest remarks now offer a clearer picture of how the Amendment could reshape competition enforcement.

New Competition Tool (NCT)

At the core of the Amendment stands the long-discussed New Competition Tool (“Tool”). This mechanism would allow the Office to intervene even in markets where no infringement of competition law (e.g. cartel or abuse of dominance) has been established. The Tool aims to target the so-called “market failures” which may impede effective competition, such as tacit collusion, market tipping, or structural dominance.

Under the Amendment, the Office would be able to impose both behavioral and/or structural remedies. The latter may include significant interventions, e.g. the divestment of parts of an undertaking, if necessary to restore competition. The Office should only resort to such interventions when behavioral remedies fail. Importantly, the Tool is expected to apply even in regulated sectors such as energy, telecommunications, or banking.

Liability of Executives for Cartel Participation

The Amendment further seeks to introduce, for the first time in Czech competition law, the administrative liability of natural persons involved in horizontal cartel agreements (price-fixing, market sharing, bid rigging, etc.). The proposition aims specifically at managing directors and executives, i.e. those who, through their decision-making, engage in anti-competitive conduct. Executives could face fines of up to CZK 10 million and disqualification from management positions lasting for up to five years.

Individuals will be allowed to participate in the leniency program, thus the Office explains the measure more as a way to incentivize individuals to cooperate, rather than as a means of punishment.  Nonetheless, exposing executives to new personal risks may lead to potential conflicts of interest with the undertakings they represent. The Amendment is subject to future developments, however, undertakings can already be advised to implement a proactive approach to compliance and even take appropriate steps to motivate the executives to first consult with the undertaking rather than to turn directly to the Office (e.g. by creating internal reporting channels).

Reform of Merger Control

The Office also plans to overhaul merger control by introducing a “call-in” mechanism, allowing it to review transactions that do not meet current notification thresholds but may nonetheless affect competition (e.g. acquisitions of innovative start-ups). At the same time, the existing thresholds would increase (from a combined turnover of CZK 1.5 billion to CZK 2.5 billion), which should reduce the number of routine filings by 20–30%.

Key Takeaway

The planned Amendment reflects the Office’s ambitious plan to become more proactive, flexible, and interventionist – moving beyond punishing infringements to shaping market structures. The legislative process of the Amendment has not yet commenced. However, it is clear that undertakings operating in the Czech Republic can expect stricter control and higher compliance requirements in the future. 

If you need more information or further guidance in this area, please contact Vojtěch Chloupek, Kristýna Vojtěchovská, and Matej Šinkovic.

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