19th August 2020

Competition vs. environment: City of Prague violated competition law in connection with the rules for parking hybrid vehicles

In the decision, the Office stated that the advantage of hybrid vehicles was motivated by the legitimate efforts to reduce the negative impact of transport emissions on air quality. However, the condition limiting the power of the internal combustion engine was not chosen on the basis of objective and non-discriminatory criteria and was not proportionate to the stated objective of the regulation. The performance of an installed internal combustion engine is not a reliable indicator of the emission value of a hybrid vehicle. The city of Prague later came to this conclusion when it changed the above criterion in 2019 to a limit value of CO2 emissions of 50 g/km.

Regulation of the competition and environment policies are on the EU level governed by Article 3 of the TEU and Articles 7 and 11 of the TFEU. Conflicts between these policies can be expected more often in the future and they should be resolved under the principle of proportionality. 


Members of the American Chamber of Commerce in the Czech Republic