The Slovak Antimonopoly Office (AMO) has published new guidance setting out how companies can apply for reductions in competition fines on the grounds that they are unable to pay, in a move aimed at increasing transparency and legal certainty for businesses.
The guidance, released on May 19, explains the authority’s approach to conducting an “inability to pay” (ITP) analysis and details the information companies must provide when seeking a reduction in penalties imposed for competition law infringements.
According to the AMO, the document is designed to help businesses better understand both the procedural requirements and the criteria the authority will use when assessing requests for fine reductions. The guidelines outline the elements that should be included in an application and provide greater clarity on the financial and economic evidence that companies are expected to submit.
The authority said the initiative forms part of its broader efforts to improve transparency and make competition rules more accessible and understandable for market participants.
Competition authorities may consider claims of inability to pay in exceptional circumstances where a fine would threaten a company’s economic viability. Such assessments typically require detailed examination of a firm’s financial position, including liquidity, assets, liabilities and future business prospects.
By publishing the guidance, the Slovak watchdog aims to provide greater predictability for undertakings facing enforcement proceedings and to ensure a consistent approach to the evaluation of financial hardship claims.
The publication represents the latest step in the AMO’s programme of increasing openness around its enforcement practices and helping businesses navigate competition law compliance and sanctioning procedures.
