The Czech Office for the Protection of Competition (UOHS) has concluded sector investigations into compliance with the amended Act on Significant Market Power (ZVTS), which came into effect in January 2023. The amendment expanded the scope of the law, extending its reach across the agri-food chain to hundreds of entities, from producers to wholesalers and retailers, aiming to ensure fair practices in the “farm to fork” supply chain.
Key Findings and Actions:
- UOHS examined 21 sub-markets in the agri-food sector, reviewing nearly 500 entities and over 4,000 contracts.
- Investigations revealed significant disparities in compliance with ZVTS requirements, such as the 30-day payment rule for agricultural products and food purchases.
- Administrative proceedings were initiated in 15 cases, of which 9 have concluded. Seven entities, including Heineken Czech Republic and Jan Becher – Karlovarská Becherovka, were fined for violations.
- Common violations included delayed payments and inadequate contract documentation, often linked to related services like marketing and promotions.
Preventive and Ongoing Measures:
- UOHS provided guidance to smaller offenders with isolated administrative errors.
- Preliminary investigations continue, with further actions expected in 2025 based on findings and new reports of non-compliance.
The UOHS emphasized the expanded enforcement capabilities under the amended ZVTS, which transposed the EU’s Unfair Trading Practices Directive into Czech law. The reforms aim to create a level playing field across the agricultural and food supply chain.
