Law & Q&A

Art. 4. 

(1) An agreement restricting competition is an agreement between undertakings, a concerted practice of undertakings, and a decision of an association of undertakings that are aimed at or may result in a restriction of competition. An agreement restricting competition is prohibited, unless otherwise provided in this Act.

(2) An agreement restricting competition is not an agreement between undertakings, a concerted practice of undertakings and a decision of an association of undertakings if its effect on competition is negligible. An agreement between undertakings, a concerted practice of undertakings and a decision of an association of undertakings has a negligible effect on competition if the market shares of the undertakings participating in an agreement between undertakings, a concerted practice of undertakings or a decision of an association of undertakings do not exceed the thresholds set by general binding rules (Section 64 point (a)). An agreement between undertakings, a concerted practice of undertakings and a decision of an association of undertakings do not have a negligible effect on competition if its objective is to restrict competition.

(3) In particular, an agreement restricting competition is prohibited if it relates to

1. a direct or an indirect determination of the prices of goods or other business conditions,
2. a commitment to limit or control production, sales, technological development, or investment,
3. the division of the market or sources of supply,
4. the commitment of the parties to the agreement that they will apply different conditions to individual undertakings in the same or comparable performance, by which those undertakings are or may be disadvantaged in competition,
5. conditional conclusion of contracts to the extent that the parties are required to accept other commitments which, by their nature or according to the trade practice, have no connection with the subject of those contracts; or
6. the coordination of undertakings in public procurement, public tenders or other similar tenders in the context of public procurement, public tenders or other similar tenders.

(4) The prohibition under subsection (1) shall not apply to an agreement restricting competition which

1. contributes to improving the production or distribution of goods or to promoting technological or economic development, while providing the consumer with a fair share of the resulting benefits;
2. does not impose on the parties to the agreement restricting competition such restrictions which are not indispensable for the attainment of the objectives referred to in point a); and
3. does not allow the parties to the agreement restricting competition to eliminate competition in respect of a substantial part of the goods in question on the relevant market.

(5) The prohibition under subsection (1) does not apply to a group of agreements restricting competition which cannot affect trade between Member States of the European Union, while it is aimed at or may result in restriction of competition in the Slovak Republic and meets the conditions for exemption from the ban under special regulations (hereinafter referred to as "block exemption"); Section 34 is not affected by this.

(6) If a party to the proceedings claims that his conduct or activity is covered by subsection 2, 4 or subsection 5, he is obliged to prove this to the regulatory authority.

(7) If the reason for the prohibition under subsection (1) applies only to a part of the agreement of undertakings or to a part of the decision of an association of undertakings, only that part is prohibited if it follows from the content of the agreement or the content of the decision that the part can be separated from the rest of the content.

Art. 42. 

(1) The regulatory authority shall impose a fine on an undertaking of up to 10% of the worldwide turnover for the previous accounting period, for each

1. breach of the prohibition of an agreement restricting competition,
2. breach of the prohibition of abuse of a dominant position,
3. failure to notify a concentration before the proceeding to exercise the rights and perform the obligations arising from the concentration,
4. breach of the prohibition to exercise the rights and perform the obligations arising from the concentration, unless the regulatory authority has granted an exemption pursuant to § 10(4),
5. non-compliance with the regulatory authority’s decision; or
6. breach of the prohibition of participation in public procurement.