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ARTICLE · 26 JULY 2011

CEZ Subject To Commission Formal Dominance Probe

SJ Berwin LLP
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The European Commission ('Commission') has opened a formal competition investigation against Czech electricity incumbent CEZ for potential abuse of dominance.

European UnionAntitrust/Competition Law
SJ Berwin'S EU & Competition Team
SJ Berwin'S EU & Competition Team

The European Commission ('Commission') has opened a formal competition investigation against Czech electricity incumbent CEZ for potential abuse of dominance.  This is the latest in a string of abuse of dominance investigations of incumbent energy providers since the Commission's 2007 sector inquiry.

The Commission conducted dawn raids on the Czech electricity market in November 2009, targeting CEZ and Energetický a průmyslový holding ('EPH').  The Commission stated at that time that it had reason to believe that action carried out by CEZ, unilaterally or together with other players, may have led to a substantial distortion of competition.  This may have enhanced CEZ's dominant position and breached Article 102 TFEU by excluding competitors and raising prices on the Czech wholesale electricity market.

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