13. 8. 2015

Protection by the Administrative and Inspection Authorities in the Event of Unfair Competition to be Eliminated

Recently, the Government of the Republic of Slovenia forwarded the Act Amending the Prevention of the Restriction of Competition Act (Zakon o preprečevanju omejevanja konkurence, ZPOmK-1) to the National Assembly of the Republic of Slovenia. This amendment provides for the annulment of the Protection of Competition Act (Zakon o varstvu konkurence, ZVK), the transfer of the regulation of unfair competition from the ZVK to the ZPOmK-1, and the elimination of protection by the administrative and inspection authorities.

As a result, disputes between companies arising from alleged acts of unfair competition would no longer be settled by the inspection authorities but only before competent courts in civil proceedings. This change holds significant consequences for temporary suspensions overall, since it entirely eliminates the possibility of the administrative and inspection authorities issuing temporary suspensions of allegedly questionable acts constituting acts of unfair competition.

Based on the Enforcement and Securing of Civil Claims Act (Zakon o izvršbi in zavarovanju, ZIZ-1), companies wishing to achieve the temporary suspension of the allegedly questionable acts of unfair competition of another company would still have the right to request the temporary suspension thereof before the competent court, even if the above-mentioned change is adopted.

This implies that if the temporary suspension turns out to be unwarranted, companies requesting a temporary suspension would assume full risk for possible actions for compensation. It would further prevent the damage that can occur, under the current legislation, to companies in the event that an administrative or inspection authority imposes a temporary suspension and prevents a company from undertaking certain activities, whereas the court subsequently finds that the allegedly questionable act does not constitute unfair competition.

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