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Statement on ÚOHS’s decision on Czech Coal’s dominant position on the coal market
16.12.2009
We resolutely disagree with the conclusion reached by ÚOHS [Office for the Protection of Competition] in respect of Czech Coal Group's abuse of its dominant position on the brown coal market. We will seek a reconsideration of ÚOHS's opinion using all the legal ways and means available to us.
Czech Coal Group has a dominant position on the brown coal market in general, because Czech Coal's share of the market of uncommitted coal is 56%. Czech Coal's dominant position vis-à-vis United Energy was entirely evident as United Energy was technologically connected with MUS (or, as applicable, Czech Coal) and physically did not have any possibility to take coal from a different supplier.
The option of public authorities imposing fines on Czech Coal under the law on prices remains available, specifically for abuse of economic position (which is not identical with dominant position within the meaning of the law on the protection of competition). It is the law on prices that provides fundamental protection against the charging of unreasonable prices.
The fact that Czech Coal is abusing its market position and distorting competition has also been confirmed by last year's decision of the Ministry of Finance, as the authority entitled to supervise compliance with the law on prices; the Ministry imposed a fine of CZK 37.5 million on Czech Coal (or, as applicable at that time, MUS of the Czech Coal Group) for MUS's abuse of its market position and charging unreasonably high prices for its coal.
United Energy is part of the ENERGETICKÝ A PRŮMYSLOVÝ HOLDING group.
Martin Maňák
Director of Communications
Energetický a průmyslový holding
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