The European Commission has raised concerns with Czechia regarding the appointment of EKO-KOM as the sole authorized company for packaging waste collection and recovery for more than two decades, potentially violating EU competition rules.

EKO-KOM, a Czech-based company, has held a monopoly on providing these services to over 20,000 businesses in Czechia since the Czech Packaging Act came into effect in 2002. Other companies have faced significant barriers in obtaining authorization to offer similar services, including strict requirements and the influence of EKO-KOM in the authorization process.

The Commission believes that these state measures have hindered competition by giving EKO-KOM unfair advantages, preventing new entrants from obtaining authorization, and effectively establishing EKO-KOM as a monopolist in the Czech market for waste collection and recovery.

The Commission has formally notified Czechia of its competition concerns through a Letter of Formal Notice, citing potential violations of EU competition rules. If confirmed, these actions could breach Article 106 of the Treaty on the Functioning of the European Union in conjunction with Article 102 TFEU.

The investigation was initiated following a complaint from REMA AOS, a Czech company that unsuccessfully attempted to enter the packaging waste collection market. Five other companies also faced challenges in accessing the market, prompting the Commission's scrutiny of the situation.