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Office for the Protection of Competition of the Czech Republic

11/27/2020 | Press release | Distributed by Public on 11/27/2020 07:02

The collective rights management organisation OSA abused dominant position; its appeal has been rejected and fine of CZK 10.7 million has been confirmed

The chairman of the Office for the Protection of Competition Petr Rafaj has rejected the appeal of the collective rights management organisation OSA - Ochranný svaz autorský pro práva k dílům hudebním, z.s., and confirmed the first-instance decision, by which a fine of CZK 10,676,000 was imposed on OSA for abuse of dominant position.

According to the appealed decision, OSA violated both the Czech Competition Act and the EU competition rules by imposing inadequate conditions on accommodation facilities for acquiring licenses for usage of copyright by means of audio or audio-visual devices in rooms of accommodation facilities between 2008 and 2014.

OSA did not take into account the occupancy of rooms in accommodation facilities within the abovementioned period. On that basis, the operators of accommodation facilities paid for licences even when the room was not occupied at all. The Office has found that the requirement of royalty payment even in cases when it can be proved that the copyright work could not been used by the acquirer of the license, i. e. when the room was not occupied and therefore no consideration was provided, can't be seen as an adequate condition and it thereby does not meet the requirement of proportionality of mutual performance and consideration of the contract.

OSA raised several objections within its appeal, such as unreviewability of the decision, incorrect fact finding, failure to prove harm and distortion of competition and failure to prove inadequacy of conditions and prices. These included procedural objections and objections against calculation of fine as well. The chairman has addressed all the objections in detail, and he has not found them to be reasoned.

Press Unit of the Office
20/112 - R0002/2020