In a recently written opinion issued by the European Commission to Slovakia, the European Commission has asked the republic to amend a provision of the Slovak Competition Act which is believed to have restrained the ability of the nation’s competition authorities from implementing appropriate measures against anticompetitive practices. The opinion comes as an expression of the Commission’s growing concern that Articles 81 and 82 of the EC Treaty to anticompetitive behavior in the electronic, communications, energy and postal sectors are not being enforced.

The function of the aforementioned articles has been to prohibit the formation of cartels, restrictive business practices and abuses which can occur when companies assume an overtly dominant position in a particular industry. In accordance with Slovakia’s responsibilities and obligations as a member of the European Union, the Commission has asked the country to adapt its legislation in conformity with EU law. If within two months of receipt of the opinion, Slovakia does not adequately address the request of the Commission, it remains within the range of possibilities that the Commission may choose to refer the case to the European Court of Justice.   

The Commission’s current endeavor has its roots in a previously pursued initiative that was undertaken to resolve this matter when it was in its more elementary stages. On June 6, 2008 the Commission sent a letter of formal notice under EC Treaty infringement procedures to Slovakia because Section 2(6) of the Slovak Competition Act limited the ability of the Slovak Competition Authority to effectively apply Articles 81 and 82. This circumstance resulted in part to this controversial law which excludes the application of the Competition act to behavior that would breach the Slovak regulatory framework for electronic communications, energy and post. This is contrary to EU law, which requires parallel application of competition law and regulation.  

 Slovakia has informed the Commission that it has begun to take the necessary steps towards formulating a draft amendment that will strengthen the Slovak Competition Authority’s ability to better enforce Articles 81 and 82 of the Commission’s treaty. However, it has yet to inform the Commission of a specific date for entry of any relevant legislative changes. Therefore until this occurs it will remain challenging for the Commission to determine the effect and extent to which its current programs and policies supportive of competition will play out in Slovakia. 

Expressing her sentiment on the greater context of this legal standstill Competition Commissioner Neelie Kroes said, “It is important that the Slovak legislation is changed quickly to ensure that the Slovak Competition Authority can apply EU competition rules without restrictions. Empowering national competition rules was an important part of our antitrust reform, and it is vital that these authorities are allowed to get on with the job.”  

As the European Union continues its search for improved and creative means to foster greater fluidity of its integration, the fundamental principle of having a cohesive, applicable and enforceable law for all member states must be safeguarded.