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Agreements Restricting Competition

Agreements (written, oral or otherwise) restricting competition are defined as agreements, actions in concert or decisions of associations of entrepreneurs that aim to or may result in the restriction of economic competition.

The Antimonopoly Act strictly states that any agreements restricting competition are prohibited, in particular agreements involving:

direct or indirect price fixing, or fixing of other commercial conditions commitment to limit or control production, sale, technological development or investments division of market or sources of supply agreements involving discrimination of third parties conclusion of contracts is subject to acceptance of other supplementary obligations which are not related to the subject of the original contracts, either by their nature or according to their commercial usage (tying-in) co-ordination of offers in public tenders (e.g., bid rigging).

Under certain strict conditions some of the abovementioned agreements may be concluded. These conditions are stipulated by the EU block exemption directives which apply also to purely Slovak relations (by virtue of special provision in the Antimonopoly Act). The businesses should assess fulfillment of these conditions on their own (i.e. no notification duty exists).

Abuse of Dominant Position

As regards a dominant position, acquisition or holding of such position on the relevant market is not prohibited by law; however, abuse of a dominant position is strictly forbidden. The Antimonopoly Act does not assume any particular threshold with respect to the size of market share of a particular entrepreneur in order to determine that such entrepreneur holds a dominant position. It simply states that a dominant position on the relevant market is held when one or more entrepreneurs, who are not exposed to significant competition, may behave independently on the market due to their economic power.

Abuse of dominant position is in particular:

direct or indirect enforcement of disproportionate prices or contractual conditions restriction or threat of restriction of production, sales or technical development of goods with detrimental effects towards consumers applying different conditions for equal or comparable transactions to individual entrepreneurs resulting in real or possible competitive disadvantage making conclusion of a contract subject to another party's acceptance of conditions unrelated to the subject of contract

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©2010 KPMG Slovensko spol. s r.o. , a Slovak limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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