On Tuesday, 11 June, the European Commission announced that it had enjoined the Czech Republic, via a letter of formal notice, to improve competition in the waste sector.
Its preliminary view is that the legal provisions that have made the incumbent waste treatment operator, EKO-KOM, the de facto sole company authorised to collect and recover packaging waste for the last 20 years could constitute an infringement of Articles 102 and 106 of the Treaty on the Functioning of the EU.
The European Commission pointed out that the Czech legal provisions include authorisation requirements that are difficult to fulfil—requirements that contain strict contractual and financial conditions. It fears that these measures have led to unequal opportunities and have created disproportionate barriers to entry for EKO-KOM’s competitors.
As yet, no other company has successfully entered this particular market. Incidentally, one of the competing companies, REMA AOS, filed the complaint that triggered the European Commission’s investigation.
The European Commission also fears that these measures have placed EKO-KOM in a conflict-of-interest situation, since the company actually has the right to influence the authorisation process for other applicants. (Original version in French by Émilie Vanderhulst)