The European Commission has formally urged Czechia to promote a more competitive atmosphere for waste collection and recovery in its packaging sector. The EC highlighted that designating EKO-KOM as the exclusive entity for domestic packaging waste management for over 20 years could breach EU competition regulations. This move followed an investigation triggered by a complaint from the Czech company REMA AOS, which reported facing market entry obstacles.
In addition to REMA AOS, five other companies also struggled to penetrate the market. Since the implementation of the Czech Packaging Act in 2002, EKO-KOM has been the sole operator authorized to manage packaging waste collection and recovery for over 20,000 businesses, effectively preventing any other company from obtaining such authorization.
The EC’s preliminary findings indicate that the Czech Packaging Act and its enforcement may have created substantial entry barriers, such as rigorous authorization requirements and EKO-KOM’s potential influence over the authorization process of competitors. These barriers have resulted in EKO-KOM holding a de facto monopoly for more than two decades. The Commission suggested that these state measures created unequal opportunities and placed EKO-KOM in a conflict of interest.
Margrethe Vestager, the EC executive vice-president for competition policy, expressed concern that Czech measures had hindered the entry of rival companies, adversely affecting prices, quality, innovation, and consumer choice. She emphasized that ensuring effective competition is crucial for achieving a sustainable and circular economy, a key component of the European Green Deal.
