50/2016 Coll.


LAW
Dated 13 January 2016

Amending Act no. 395/2009 Coll., On significant market power in the sale
agricultural and food products and its misuse

Parliament has passed this Act of the Czech Republic:

Art. I

Act no. 395/2009 Coll., On significant market power in the sale of agricultural and food products
and its misuse, as follows:

First Designation of Titles I to V, including headings deleted.

Second § 1-3, including the title and footnote no. 1 added:

"§ 1
Introductory provisions


(1) This Act regulates

A) method of assessing and preventing misuse of market power
in connection with the purchase of food for the purpose of resale
Czech Republic or services with the buying or selling of food-related
,

B) supervision over compliance with this Act.

(2) Pursuant to this Act shall be considered an abuse of significant market power
which was carried out abroad if its effects have occurred or may occur
in the Czech Republic.

§ 2

Definition of certain terms

For the purposes of this Act

A) contractor entrepreneur who sells food for their
resale or receives or provides services related to the sale of food
,

B) customer entrepreneur or purchasing alliance under subparagraph c) if
buy food for the purpose of resale or receiving or
provide services related to the purchase of food;
per subscriber is considered to be someone who, for such purchases or services for another subscriber
provided under the contract příkazního type

C) purchasing alliance grouping customers arising under the contract
other legal action or other legal facts which performs
cooperation between purchasers in connection with the purchase of food for their
resale or receiving or providing them with the
related, or was for the purpose of this cooperation is established, regardless
whether this group has or does not have legal personality

D) food ingredient or product is defined as a food
directly applicable regulation of the European Union ^ 1).

§ 3
Significant market power


(1) Significant market power is a position of the customer in whose
result of a subscriber to enforce without just cause advantage over
suppliers in connection with the purchase of food or receiving or providing services
buying or selling food related.

(2) Significant market power is assessed in particular with regard to the structure
market entry barriers and financial strength of the buyer.

(3) If the customer is an entrepreneur who provides food purchases
services or the purchase or sale of related food for another
buyer under contract příkazního type, its significant market power
be assessed together with the position the customer for whom the work
provided.

(4) It is considered that significant market power

A) customer whose turnover for the sale of food and service with
related to the Czech Republic exceeds 5 billion.
CZK for the last accounting period of 12 months,

B) the buyer, which is controlled entity whose turnover for the sale of foodstuffs
and related services in the Czech Republic will not exceed 5 billion.
CZK in the last accounting period of 12 months if the | || turnover for the sale of food and related services in the Czech Republic
together with the turnover of the controlling entity for sales of food and
related services in the Czech Republic exceeds 5 billion. CZK
last completed financial period of 12 months or

C) purchasing alliance, in which the combined turnover of its members for selling
food and related services in the Czech Republic exceeds
5 billion. CZK in the last accounting period of 12 months.

1) Regulation of the European Parliament and Council Regulation (EC) no. 178/2002 of 28
January 2002 laying down the general principles and requirements of food
law, establishing the European Food Safety Authority and laying down
procedures relating to food safety. ".

Third Under § 3, the following new § 3a, including the heading reads:

"§ 3a
Particulars of the contract


The contract between the purchaser with significant market power and the Contractor shall be
agreed in writing and must be in addition to substantial parts also include:

A) the method of payment of the purchase price and the time of its settlement, the amount of discounts on the purchase
price or method of determination, if provided, the time
payment of the purchase price must not be longer than 30 days from the date of receipt
invoice, the amount of any cash performance of suppliers whose
total amount must not exceed 3% of annual sales
contractor in the last accounting period of 12 months for the food delivered

Individual customers in the year in which there was a financial transaction

B) the period or method of determination for delivering purchased items and determine its
amount for a set period or determine the amount of individual deliveries
subject of purchase,

C) in the event that they are accepted and provided services related
buying or selling of food, method of cooperation in their adoption
and providing what the subject, scope, method and period of performance of the price
or the method of its determination,

D) the period of validity of the guaranteed purchase price, which may not exceed 3
months from the date of first deliveries of food, for which the purchase price
negotiated

E) the method of assignment of receivables, which are governed by the Civil Code
. ".

Fourth § 4 including the title and footnote no. 2 reads:

"§ 4

Prohibition of abuse of significant market power

(1) Abuse of significant market power is prohibited.

(2) Abuse of significant market power is particularly

A) the negotiation and implementation of contractual terms which make
significant imbalance in the rights and obligations of the Parties

B) negotiation or obtaining any payment or other transactions for which has been granted
service or other valuable consideration, or is excessive
really worth the consideration,

C) the application or getting any payments or rebates, the amount, subject and scope
provided consideration for the payment or discount
been agreed in writing prior to delivery of food or services,
to which the payment or discount applies

D) the negotiation and implementation of pricing conditions which result
not a tax receipt for the payment of the purchase price for the supply of food contain
final amount of the purchase price after any negotiated discounts on the purchase price with the exception of pre-arranged
quantitative discounts

E) the negotiation and implementation of payment or other consideration for admission
food into sales

F) the negotiation and implementation of the maturity of the purchase price
food longer than the time specified in § 3 point. a)

G) the negotiation and implementation of the right to a refund of the purchased foodstuffs with the exception
fundamental breach of contract,

H) seeking compensation for the sanctions imposed by the control body after suppliers
no fault of his own existence,

I) discriminating suppliers, the negotiation and implementation
different terms and conditions for the purchase or sale of services with the purchase or sale of food
associated with comparable performance, without
fair grounds

J) auditing or other forms of control
supplier by a customer or authorized natural person or legal entity at the expense
suppliers including demands for food analyzes the supplier's expense or


K) disregard the results of the official food control authorities carried out state supervision
^ 2) customer.

2) Act no. 110/1997 Coll., On foodstuffs and tobacco products and
amending and supplementing some related laws, as amended
regulations. ".

Footnote. 2 becomes footnote # 3.

Fifth The heading of § 5 reads:

"Supervision of compliance with the law."

6th In § 5, the word "supervision" is replaced by "Supervision".

7th In § 5, the existing text becomes paragraph 1 and the following
paragraph 2, which reads:

"(2) The complaint concerning the breach of the obligations imposed by this Act or
decision issued pursuant to postpone Authority,
if it finds it well-founded. In assessing the reasonableness based on the degree of seriousness of the investigation
negotiations, taking into account in particular the nature
conduct, the manner of its execution and the number of entities concerned. The postponement
initiative, a written record, in which the reasons for, and inform him of the subscriber
. ".

8th In § 6 paragraphs 2 and 3 added:

"(2) Instead of a decision under paragraph 1 Office decides to stop
proceedings, provided that the party Office suggested obligations whose fulfillment
to remedy the problem, and that the misuse of market power was not
Office qualified as serious. That decision may
Office also specify the conditions and obligations necessary to ensure the fulfillment of these commitments
. If the Authority finds the proposed commitments are not sufficient, it shall notify in writing the reasons
party to continue with the proceedings.

(3) The obligations under paragraph 2 party in writing propose
Office not later than 15 days from the day on which the Office delivered a written notice
in which Office shall communicate the basic facts of the case, their legal
reviews and links to the main evidence on them, contained in the file
(hereinafter "statement of objections"). The municipality is their proposal
bound to the Authority, or against third parties, and following the proposal to
Office's decision pursuant to paragraph 2 shall not proceed in a manner that is the subject of a statement of objections
Office. ".


9th § 6 para. 4 point. b) the words "parties act" shall be
words "party acts".

10th Under § 6 the following § 6a is added:

"§ 6a

If found in violation of the prohibition set out in § 4, the Office may decide
imposing remedial measures whose purpose is to remove the offending
state, and set a reasonable time limit for its fulfillment. ".

11th In § 7, the word 'abuse' is replaced by the word "abuse" and the words
"another legal regulation 3)" is replaced by "Law on the Protection of Competition
".

Footnote. 3 is repealed.

12th In § 7 the existing text becomes paragraph 1 and the following paragraph 2
which including footnote no. 6 reads:

"(2) The procedure of the Office pursuant to this Act, the legislation on the control
^ 6) do not apply.

6) Act no. 255/2012 Coll., The control procedure. ".

13th In § 8. 1, the words "legal entity or a natural person
as a competitor" is replaced by "The customer, who has significant market power
is."

14th In § 8. 1 point. a) and b) the words "this Act" are deleted.

15th In § 8. 1 point. c) the words "another law"
replaced by "§ 6a".

16th In § 8. 1, letter d) reads:

"D) does not arrange compulsory element of the contract pursuant to § 3a point. a) to e)
does not arrange or contract in writing. ".

17th In § 8, after paragraph 1 the following paragraph 2 is added:

"(2) A legal or natural person commits an administrative offense
that

A) violates the seal affixed during an investigation under this Act, or

B) in contravention of this Act does not provide the Office of complete, accurate and truthful
documentation or information, including business books, other business
records or other records that may be relevant to clarify
subject of the proceedings. ".

Existing paragraph 2 shall be renumbered third

18th In § 8, paragraph 3 reads:

"(3) For an administrative offense under paragraph 1 shall be fined up to 10 million CZK
or 10% of net turnover achieved
customer for the last completed financial year, and for an offense pursuant to paragraph 2 stores | || fine of up to CZK 300 000 or 1% of net turnover achieved
legal or a natural person for the last completed financial year. ".

19th In § 8 the following paragraphs 4 and 5 are added:

"(4) If a fine is imposed under paragraph 3

A) customers, which is a controlled entity, is calculated from the total net turnover
controlled and controlling parties in the last accounting period, or


B) buying alliance and its members, counts on total net turnover achieved
its members for the last completed financial year.

(5) If a fine is imposed purchasing alliance, its members liable for
pay the fine imposed jointly and severally. ".

20th In § 9. 5, after the word "provisions" the word "this".

21st Footnote. 4 shall be deleted, including the reference to the footnote below
line.

22nd In § 9, paragraph 6 reads:

"(6) Liability for an administrative offense of legal persons, which ceased to exist,
transferred to its legal successor. If the defunct legal entity
more legal successors, is responsible for the administrative offense each. When
penalty area is also taken into account to the extent to which were transferred to the legal successor
revenues, benefits and other benefits from the committed administrative offense
, and it continues if one of the legal successors in action | || during which the administrative offense was committed. ".

23rd In § 9, paragraph 7 is deleted.

Existing paragraph 8 shall be renumbered seventh

24th In § 10 paragraph 1 reads:

"(1) The legal entity or a natural person who, in contravention of this Act does not provide
Office in carrying out investigations necessary cooperation,
can impose a disciplinary fine of up to CZK 300 000 or 1% of net || | turnover it achieved in the last accounting period. ".

25th In § 10 paragraph. 2, the word "competitor" is replaced by "legal
or a natural person."

26th In § 10 paragraph 3 is deleted.

27th Annex no. 1 to 6 are deleted.

Art. II
Transitional provisions


First Management has not been lawfully terminated before the effective date
this Act shall be completed and the rights and obligations regarding the
judged according to the law no. 395/2009 Coll., As in force prior to the date of entry into force
this Act.

Second Contracts incurred before the effective date of this Act, which contain
conditions under § 3a of the Act no. 395/2009 Coll., As amended
effective from the date of entry into force of this Act shall bring their
contracting parties to comply with § 3a of the Act no. 395/2009 Coll., as amended effective
effective date of this Act, within three months from the date of
entry into force of this Act.

Art. III
Efficiency



This Act comes into force on the thirtieth day after the date of its publication.


Hamáček vr Zeman


Sobotka