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SUCCESS STORIES |
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the presentation of prevention policies of
the unfair competition and solutions given to various issues related
to anti-trust policies/issues in CEEC to serve as a documentation
basis; the ongoing improvement of the legislation and its related
implementation regarding the CEE competition.
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The Slovak
Republic - Report on Implementation of the OECD Anti-Bribery
Convention.
This report evaluates
the success in application of the OECD Anti-Bribery Convention and the
1997 Revised Recommendation in the Slovak Republic.
Source: OECD, 2
December 2005.
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The Czech
Office for the Protection of Competition imposed by the decision of
24th November 2005 the fine amounting to 205 million CZK (approx. 7,1
million €) upon the company Český Telecom for infringement of the
Article 82 of the EC Treaty.
Český Telecom offered from 2002 to its end – customers unregulated
price plans that comprise a monthly lump – sum payment for a lease of
telephone station an unoparable part of which are call credits or free
minutes for „free“ calling, and a service called „the Internet
Express“ in addition to that a customer obtains a „Universal type“
price plan at an advantaged price of the monthly lump for the first
hour of calling is charged to the customers. By this services it
impeded the development of competition and created barriers to the
entry of new operators to the market, the development of current
alternative operators and limited the consumers‘ possibility of
obtaining services of the highest possible quality at a competitive
price.
Source: The Czech
Office for the Protection of Competition,
30 November 2005.
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The Competition
Committee of OECD recommended to the Council of the organization that
Romania should be accepted as observer.
The recommendation came at the end of October 2005 following
the official demand of
Romania. This is a
step forward on the way to full membership of the Organisation for
Cooperation and Economic Development in Europe. The Romanian
Competition Council is lobbying the structures of the Organisation and
the member states authorities in order to plead for Romania’s
candidate-ship. The participation to the Committee’s works will give
to the Romanian Council the opportunity to obtain more experience and
to speed the progresses made in the field of competition.
Source: The
Romanian Competition Council, 3 November 2005.
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As a follow up of the
Competition Council’s investigation on the Romanian cement market the
cement prices are lowering.
During the months of
May and August 2005, the cement producers registered a diminution of
prices with 6% of the most sold cement types. This is an important
figure as the prices for construction materials are generally
registering a uprising trend.
Source: The Romanian
Competition Council, Press Release, 17 October 2005.
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The Hungarian
Competition Council imposed a fine of HUF 593,9 million (ca. EUR 2,4
million) on 8 construction companies for the rigging of their bids in
respect of a road construction work put out to tender.
The bids in the
public procurement deal were invited by the Municipality of Budapest.
The members of the cartel agreed which one of them was to win the
public procurement contract and to employ then the others as
subcontractors to the project.
Source: The Hungarian Competition Council, 16 September 2005.
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A bank condemned by
the Competition Authority -
the Competition
Council of the Hungarian Competition Authority adopted a decision in a
public trial in which it declared the conduct of Trading and Credit
Bank as deceiving consumers by its savings account. The Competition
Council prohibited the continuation of the conduct which violated the
provisions of the Hungarian Competition Act, and imposed a fine of 10
M Ft on the bank in question.
Source: The Hungarian Competition Authority.
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The Hungarian
Competition Council obliged the Hungarian Medical Chamber to amend its
Code of Ethics.
The
anti-competitive provisions of the Code were the restricting price
competition among doctors and advertising. The Council ordered the
enforcement of its earlier final decisions where it obliged the
Hungarian Medical Chamber not to apply and to delete the unlawful
prohibitive provisions, in respect of providing medical services at
fees below of what had been recommended by the chamber and advertising
medical services.
Source: The
Hungarian Competition Authority.
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Annual Report
on Competition in Estonia - 2004
The Community
competition rules were modernised on 1 May 2004, based on Council
Regulation 1/2003 (the so-called modernisation regulation) and these
changes led to the amend of the Estonian legislation. A draft
Competition Act Amendment Act was prepared; the new Act was adopted by
the Estonian Parliament and came in force on 1 August 2004. Amending
the Penal Code was also one of the most significant changes, as a
result of which abuse of dominant position, if it takes place for the
first time, is not any more considered to be a criminal act but a
misdemeanor.
Source: The Estonian
Competition Council.
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The
Commission on Protection of Competition from Bulgaria imposed a BGN
50,000 pecuniary sanction
on “Bulgarian-Ukrainian Trade Centre” EOOD, Sofia for infringement of
Article 30 of the LPC.
Source: The Commission on
Protection of Competition from
Bulgaria.
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The
Commission on Protection of Competition from
Bulgaria imposed a BGN 5,000 pecuniary sanction
on “CITY GROUP” EOOD, Blagoevgrad for infringement of Article 30 of
the LPC.
Source: The Commission on
Protection of Competition from
Bulgaria.
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Competition Advocacy in
Regulated Sectors: Examples of Success.
Building on the work of the
Advocacy Working Group of the International Competition Network, at
the International Competition Network Annual Conference in Seoul,
2005, the Subgroup 4 examined advocacy efforts of more than 30
members, with a particular emphasis on regulated sectors in developing
and transition economies. The objective was to compile a compendium of
successful case studies and to discern common patterns or strategies.
These case studies and accompanying analyses are presented in this
report.
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Latvia – improvements of
the Competition Law. In 2004 the
Working Group for preparation
amendments to the Competition Law made some amendments to the Latvian
Law in the field. It was necessary to approximate this law to the Law
on Structure of State Administration and the Law on Administrative
Proceedings and to provide special procedural order, how to apply
material regulations of the Competition Law. At the same time it was
decided to correct these disadvantages of the Competition Law, which
were discovered during application of the new law, to widen
investigation powers of the Competition Council and include in Law
legal regulations, which could ensure effective application of the EU
competition legislation in Latvia.
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The Competition Council
of Latvia issued the 2004 Competition Report. During last year
there were 107 cases examined by the Council on possible violations of
Competition Law and Advertising Law, 8 of them were self initiated
cases, 90 decisions were adopted totally, that is more than in
previous years. The increased number of investigations in the field of
competition supervision and increased number of market surveys testify
about more active competition in different markets of goods and
services, and among them also in monopolistic markets previously
closed for competition. Competition Council keeps track of situation
in different markets and can initiate a case if such facts appear or
there is a sound cause to consider that such facts about violation
should exist.
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Cartel Agreement in
Information Technology Market discovered and sanctioned by the
Lithuanian Competition Council. The Competition Council was
informed that few companies, exercising economic activity on
information technology market could made forbidden agreement. There
were noticed strong similarities between bids of three companies -
“Blue Bridge”, “Techna Orbis” and “Aideta”. Investigation showed that
employees in charge of bids in all three companies exchanged
information on bid prices as it was agreed between directors of these
three companies. Necessary evidences in order to prove cartel
agreement were found: evidence on cooperation between competitors in
calculation of bids; evidence on cooperation between competitors in
calculation of budget breakdown; evidence on cooperation between
competitors in preparation of Tender guarantees. Companies “Blue
Bridge”, “Techna Orbis” and “Aideta” made horizontal cartel agreement
and thus infringed items 1 and 6 of par. 1 of Art. 5 of the Law on
Competition of Lithuania and the CC imposed fines in accordance with
the Law.
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The Hungarian Competition
Authority and the National Communications Authority from Hungary made
a Cooperation Agreement
based on the mutually beneficial assessment
of the experiences of the former cooperation and the obligation for
cooperation imposed in Act C of 2003 on Electronic Communications. The
close cooperation will increase the efficiency of the fulfillment of
the tasks of both authorities defined in rules of law and of the
implementation of their measures, by creating a framework in which
will mutually help one another to ensure efficient fulfillment of
their tasks, especially in the field of protection of competition on
the electronic communication market and to enhance unified application
of the law. Read
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The Competition
Council of the Hungarian Competition Authority
discovered a cartel case with the
cooperation of the members of the cartel.
It
established
that the undertakings of the Finnish group Kemira and those of the
Belgian group Tessanderlo have participated in a market sharing and
price fixing agreement concerning Hungary. The cartel agreement
concerned the production and distribution of fodder phosphate, which
is mainly used by producers of fodder for animals and by large meat
producers, both of which produce fodder themselves. The CC has applied
its leniency policy aiding to discover cartels: therefore, Kemira,
member of the cartel, which has reported the agreement to the GVH was
released from paying a fine, whereas Tessanderlo, reporting second,
was obliged to pay a fine of 131 million HUF (1 EUR = ca. 248 HUF).
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