Brno Regional Court nullifies the ruling against RWE Transgas, a.s. on abuse of dominant position issued by the Chairman of the Office for Protection of Economic Competition

At a hearing held 22 October 2007, the Brno Regional Court nullified theruling issued by the Office Chairman (of 12 March 2007). The ruling had imposeda fine of 240 million CZK imposed on RWE Transgas. The matter has now beenreturned to the Office Chairman for reconsideration, on grounds that theadministrative ruling was unreviewable.

The court held that the Office Chairman's ruling was unreviewable chieflybecause the Chairman had imposed a fine under both Czech law and Community lawin parallel for the same act. The court ruled that under current provisions ofCommunity law, a dominant undertaking cannot be penalised in the sameproceedings under Section 11 Czech Act on the Protection for EconomicCompetition as well as Art. 82 EC Treaty, since to do so would offend againstrule prohibiting dual punishment for a single act (i.e. ne bis in idem).

The judgement of the Brno Regional Court has come into legal effect and theOffice has repaid the fine of 240 million (already paid by RWE Transgas) to thecompany.