The Czech Competition Authority has imposed significant fines on taxi companies at Václav Havel Airport in Prague for collusion. This enforcement action comes after a review of their business practices revealed illegal coordination between 2019 and 2021.
Czech Authority’s Action Against Taxi Cartel
The convicted companies, Taxi Praha s.r.o. and FIX, spol. s r.o., have been penalised with fines exceeding 11 million CZK. The ruling, however, has not yet become legally binding as both companies have lodged appeals.
Details of the Collusion
According to the findings, the taxi firms engaged in activities that eliminated competition. They standardized pricing, exchanged sensitive business information, and aligned their branding, including their websites and vehicle markings. This cartel aimed to dominate the taxi services market at the airport.
Background of the Tender Process
- The tender for taxi services at Prague Airport was awarded in 2016.
- Initially valid from 2017 to 2021, the contract was extended until 2023.
- It was designed to ensure competition by allowing two suppliers.
Unfortunately, the winning companies instead collaborated to suppress competition and maintain higher prices for passengers. The original tender setup was intended to benefit travelers through competitive pricing and reliable service.
Fine Breakdown
The fines calculated by the authority followed established guidelines for breaches of competition law:
| Company | Fine Amount (CZK) |
|---|---|
| FIX, spol. s r.o. | 10,124,000 |
| Taxi Praha s.r.o. | 950,000 |
The authority did not provide any discounts for compliance programs or early settlements due to the ongoing appeals from the taxi companies.
This case underscores the Czech Competition Authority’s commitment to maintaining fair competition and preventing anticompetitive practices in the transportation sector. As the situation unfolds, the final outcome will be pivotal for both the taxi industry and passengers using Prague Airport services.
