-Competition law (“antitrust”)
-Unfair competition ( Nekalá soutěž )
SCOPE OF UNFAIR COMPETITION LAW
-Who is concerned?
-What kind of act ?
Competition law (“antitrust”)
Competition : It is the situation where a person or an enterprise is compared to others inthe same market (offers same kind of service/products, at equivalent prices). The word “competition” can be applied for production or commercial activities, services, even if those activities have a civil character. In order to realise profit and to improve their situation competitors use several means but this is not only up to them because there are some rules of “competition law”.Competition law: It is the a set of laws concerning conquest and maintenance of market share, which prohibits some types of acts in competition and determines appropriated sanctions in case of breach of these interdictions. Unfair competition law is a part of competition law, like mergers and acquisitions, dominance and monopoly, collusion and cartels, public procurement and state aid, but, both in Franceand in Czech Republic, “Unfair competition” contrary to the other laws, is a private law.
HISTORY OF COMPETITION LAW
Competition law is very old, since it dates back to the Roman Empire: business practices of guilds, traders of the market and governments were under surveillance and sometimes subjects to severe sanctions.
In France, the principle of freedom of trade and industry, protectedby the competition law, is born in 1791 by the Allarde Law, which abolished guilds. This principle is become a Principle General of Law applicable even without text by a State Council decision of June 22, 1951, “Daudignac” and is now a constitutional principle (30 October 1981, “broadcasting monopoly” and 16 January 1982, “ nationalization law”)
In the Czech Republic, before 1948, competitionlaw has evolved like the most of the european countries: the first explicit law in this matter was passed at the end of the XIXth, when Bohemia was the most industrial part of the Hasbourg Empire.
From 1948 to 1989, when economy was submitted to a centralised planification and management, there were no need of competition policy to regulate monopolies.
The transition to a market economy since1989 ordered to modernise the institutions, through passing a law about competition : Protection of Economic Competition (Competition Act) was adopted in 1991. 1991 is also the birth of The Charter of Fundamental Rights and Freedoms, which is a part of the set of constitutionnal rules and which guarantees the freedom of enterprise (“svobodné podnikání”) among the economics rights protected.Futhermore there were modifications of the competition law in 2001 to be conformed with the EU competition law.
Unfair competition ( Nekalá soutěž )
Companies should refrain from certain acts or practices which are contrary to the loyalty and business ethics, and likely to undermine the legitimate expectations that should prevail in business dealings.
The unfair competition law enable to penalise theabuse of freedom of trade and industry with the effect of causing a disturbance to business, this even though the victim of misconduct can not claim any exclusive right ( For example, a patent or a right arising from a contract)
The definition of unfair competition is given in the section 44 of the Czech Commercial Code, and in the French jurisprudence by the decision of 22nd of October 1985of the Cour de Cassation's Commercial Chamber.
The legal basis is one of the differences between the Czech unfair competition law and the French one. Let’s talk about the two systems of unfair competition law.
Czech unfair competition law is based on the czech commercial code, part I “General provisions’, Chapter V “Economic Competition”, section 44 to 52. On the...