Restriction of Competition by State Administration Authorities and Self-administration Authorities (§ 39)

When the competition in the market is effective the undertakings receive clear market indications on products and services which are required. Interventions of state administration authorities and local self-administration authorities may distort competition conditions and thus cause that the “market reference” is distorted. Advantaged undertakings are not motivated to reduce prices, costs, to innovate and compete effectively for customers.

The Office may therefore sanction also the conduct of state administration authorities or local self-administration authorities both local (municipalities and self-administration regions) and of interest groups (various chambers and professional associations), in case they perform state administration (so-called transferred performance of state administration) and local self-administration authorities also during performance of self-administration. By their conduct they must provide evident support giving advantage to certain undertakings or otherwise restrict competition.

Although the article 39 does not represent a classic concept of competition law, it is a useful tool to enforce the competition principles in creation of other, mainly local policies.
 

Last update: 01.12.2013