Documents and Laws in Parliament

The amendment to the Act on the Protection of Competition and the Act on Financial Market Recovery Procedures brings fundamental changes to the regulation of competition and the powers of the Office for the Protection of Competition (UOHS). The Office may now require notification of concentrations of competitors even if they do not meet the turnover criteria, if there is a suspicion of distortion of competition. The merger must achieve a turnover of CZK 1.5 billion on the Czech market and at least two competitors must have a turnover of more than CZK 100 million. The call may be made within 6 months of the transaction and it is prohibited to continue with the implementation of the merger until the decision of the Office. The Office may impose measures of a general nature for a period of up to 3 years, which may be extended. New offences are being introduced with fines of up to CZK 10 million or 10% of turnover and a ban on activity for 5 years. The amendment extends the leniency program to natural persons who have participated in cartel agreements, which allows them to avoid criminal sanctions. The Office may order the sale of part of the company or the cancellation of contracts if the merger distorts competition. Companies must be prepared for new obligations, including compliance with the deadlines for notification of concentrations and compliance with the obligations imposed by the Office. Violations of the rules can lead to hefty fines, bans, or other sanctions. The changes increase administrative costs, but also market transparency and the quality of sector inquiries. The Act enters into force on 1 July 2026.

The bill introduces a new Office for the Prevention of Corruption and Conflict of Interest, which unifies the agendas of political party financing, conflict of interest, whistleblower protection and lobbying regulation. The main changes include: 1) Lowering the threshold for transparency of donations to political parties from CZK 50,000 to CZK 5,000. 2) Obligation to prove the origin of donations from the Czech Republic or the EU. 3) New reporting obligations for public officials (e.g. notification of assets over CZK 100,000). 4) Invalidity of public contracts for suppliers in a conflict of interest. 5) Obligation to publish information on lobbying. 6) Tougher penalties for corruption. 7) Introduction of terms of office of directors of university hospitals. The office will replace the existing Office of the Institute of Criminal Justice and part of the agendas of the Ministry of Justice, while its headquarters will be in Prague. The law is set to come into force on 1 January 2027. Companies, municipalities and regions will have to adapt their processes to the new rules, such as adapting IT systems, methodologies and internal guidelines. The proposal brings one-off implementation costs in 2026, increased costs in 2027, but savings are expected from 2028 through centralization and greater transparency. The proposal does not contain new fees or sanctions, but brings organizational changes and simplification of processes. Practical impacts include increased integrity and enforceability of the rules, in particular in the areas of public procurement, lobbying and whistleblower protection.

The proposed changes to the laws focus on the prevention of corruption, conflicts of interest, transparency of public offices, financing of political parties, public procurement, whistleblower protection and regulation of lobbying. Key changes include: 1) Extension of criminal liability for corruption and increase of penalty rates (e.g. up to 12 years for selected crimes). 2) Reduction of the limit of donations to political parties from CZK 50,000 to CZK 5,000 and the obligation to prove the source of donations. 3) Introduction of an obligation for public officials to report property relations, including funds over CZK 100,000, and a ban on media ownership. 4) Introduction of a new Office for the Prevention of Corruption and Conflict of Interest, which takes over the agenda of whistleblower protection and control of public officials. 5) Introduction of mandatory selection procedures for the positions of directors of university hospitals and rules for their term of office. 6) Introduction of a register of lobbyists and tightening of lobbying rules. 7) The obligation of companies and institutions to create internal whistleblower protection systems. Practical impacts include increased administrative obligations for political parties, public officials, companies and institutions, including the need to adapt IT systems, train employees and revise internal processes. Penalties for violations of the rules include fines of up to CZK 2,000,000 or 3% of the value of assets. The changes take effect gradually, most starting January 1, 2027, allowing time for implementation. Companies, public institutions and individuals must ensure compliance with the new rules to avoid sanctions and criminal sanctions.

The new law brings fundamental changes in the regulation of media services in accordance with the European Media Freedom Act. Media service providers are now obliged to record media ownership and notify changes within 30 days via the electronic system of the Ministry of Culture. Failure to comply with obligations is punishable by fines of up to CZK 1,000,000, while the transitional provision sets a deadline of 3 months from the effective date of the law for the fulfilment of these obligations. The Radio and Television Broadcasting Council (RRTV) is given extended powers, including the maintenance of a database on public administration expenditure on advertising and the assessment of mergers in the media market. Public institutions will have to publish information on advertising expenditure by March 31 every year. The law strengthens the protection of journalistic sources and confidential communications, introduces stricter surveillance rules and limits the surveillance period of persons and objects to 4 months, with the possibility of extending it for another 4 months. Media entities must ensure transparency of ownership structure and revenues from public funds, which includes rules on the non-discriminatory allocation of state advertising. The costs of implementing the new obligations are estimated at CZK 4.05 million, while the impact on the state budget is low. The law aims to increase transparency, reduce the spread of disinformation and strengthen trust in the media. The Act is set to enter into force on the first day of the month following its promulgation.