Implementing the ICN Recommended Practices for Merger Notification

„ICN Amendment“ to the Czech Competition Act in 2004 • Significantly strengthened local nexus

„ICN Amendment“ to the Czech Competition Act in preparation • 2007 – Preparations of

Using ICN recommendations in legislative process • Introducing simplified procedure – – In predefined

Using ICN recommendations in creation of soft law • Pre-notification consultations – Implementation of

Further information on www. compet. cz OFFICE FOR THE PROTECTION OF COMPETITION OF THE

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Implementing the ICN Recommended Practices for Merger Notification and Review Experience of the Czech Republic Martin Pecina, Chairman Office for the Protection of Competition of the Czech Republic ICN AC Moscow/Implementation Panel Friday, 1 June 2007 OFFICE FOR THE PROTECTION OF COMPETITION OF THE CZECH REPUBLIC 1

„ICN Amendment“ to the Czech Competition Act in 2004 • Significantly strengthened local nexus in line with ICN RP for MNR – Notification criteria – combination of national and worldwide turnovers of merging parties, increased turnover values • Abolishing the duty to notify a concentration within the period of seven days • Result: number of concentrations notified per year decreased from 239 in 2003 to 56 in 2005 (2004 was a transition period) OFFICE FOR THE PROTECTION OF COMPETITION OF THE CZECH REPUBLIC 2

„ICN Amendment“ to the Czech Competition Act in preparation • 2007 – Preparations of the sixth amendment to the Competition Act initiated • Main changes: procedure in competition cases and merger control • Opportunity to implement „second generation“ ICN recommendations • Broad discussion on the amendment – Barristers and companies´ representatives, academics – The goal – broad support to new legal regulation OFFICE FOR THE PROTECTION OF COMPETITION OF THE CZECH REPUBLIC 3

Using ICN recommendations in legislative process • Introducing simplified procedure – – In predefined categories of mergers Less information required Shorter proceeding Approving merger without a decision (comfort letters)? • Implementation of recommendations IV. B. , V. A. and V. B • Balance between transparency and protection of sensitive and confidential information – Access to file regime • Implementation of recommendations VIII. A. and IX. • Speeding up the judicial review – Risk of delayed justice • Implementation of recommendation VII. E. OFFICE FOR THE PROTECTION OF COMPETITION OF THE CZECH REPUBLIC 4

Using ICN recommendations in creation of soft law • Pre-notification consultations – Implementation of recommendation V. C. • Statement of objections • Implementation of recommendation VII. B. • Guidelines for companies – E. g. Commitments Guidelines • Implementation of recommendation VIII. A. , VIII. B. and XI. B. OFFICE FOR THE PROTECTION OF COMPETITION OF THE CZECH REPUBLIC 5

Further information on www. compet. cz OFFICE FOR THE PROTECTION OF COMPETITION OF THE CZECH REPUBLIC 6