Czech competition authority raids Seznam.cz headquarters over suspected market abuse

by   CIJ News iDesk III
2024-10-16   13:45
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The Office for the Protection of Competition (ÚOHS) has launched an unannounced investigation at the headquarters of Seznam.cz, one of the Czech Republic’s largest online companies, over suspicions of abusing its dominant market position. The surprise intervention began on Tuesday, as confirmed by ÚOHS spokesman Martin Švanda and Seznam.cz’s representative Aneta Kapuciánová.

“The Office is conducting a local inspection of Seznam.cz to investigate reasonable suspicion of anti-competitive behavior, specifically the abuse of a dominant position,” Švanda said. He clarified that the investigation does not automatically indicate wrongdoing by the company, nor does it mean that formal administrative proceedings have been initiated at this stage.

Seznam.cz, a major player in the Czech digital landscape, stated it is cooperating fully with the competition authority. “Although we have no information regarding the initiation of any official proceedings, we are providing full cooperation with the Office’s representatives,” said Kapuciánová.

The investigation comes on the heels of previous concerns raised by ÚOHS regarding Seznam’s operations in the Czech market. In September, the Office addressed an article published by Seznam Zprav, which had reported on alleged ties between ÚOHS leadership and a publication involved in public procurement reform. The authority expressed surprise at the timing of the article, given that the Ministry of Regional Development was preparing reforms under ÚOHS’ purview. In response, Seznam called the authority’s reaction “unacceptable” and rejected claims of media pressure or retaliation.

While the specifics of the current probe remain undisclosed, ÚOHS typically investigates serious breaches of competition law, such as cartel agreements or abuse of dominance. In early October, the authority also confirmed raids on several companies over cartel suspicions, with energy giant ČEZ later revealed to be among them.

Every year, ÚOHS conducts dozens of administrative proceedings related to competition issues, ranging from anti-competitive agreements to abuse of dominance. Last year alone, the authority issued 75 competition-related decisions and imposed fines amounting to CZK 268 million.

This latest investigation into Seznam.cz adds to a growing list of high-profile cases involving alleged anti-competitive practices, underscoring ÚOHS’ ongoing efforts to enforce competition law across Czech industries.

Source: ÚOHS and CTK

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