The European Commission has raised concerns regarding a potential conflict of interest in Czechia’s packaging waste management system. The Commission has warned Prague that the sole company authorized to collect and recycle packaging waste, EKO-KOM, may be breaching EU competition rules due to its dual role as both a waste collector and a gatekeeper for potential competitors.

EKO-KOM has been the only player in the Czech market for over 20 years, providing waste management services to more than 20,000 businesses. The European Commission believes that the current Czech legislation, specifically the Packaging Act introduced in 2002, may have created substantial obstacles for new entrants. This is evident in the fact that no other company has been able to obtain the necessary authorisation to operate in this sector.

The EU executive highlighted that the authorisation requirements, which involve strict contractual and financial conditions, are nearly impossible to meet. Additionally, EKO-KOM’s role in influencing the authorisation process for other applicants raises concerns about unequal treatment and anti-competitive practices.

"We are worried that these measures have prevented other companies from entering the market, limiting competition and negatively impacting prices, quality, and innovation," said Margrethe Vestager, the European Commission’s Executive Vice-President responsible for competition policy. A letter of formal notice has been sent to Czechia, giving the government two months to respond to the Commission's concerns.

The investigation was triggered by a complaint from Czech company REMA, which failed in its attempt to enter the market, alongside five other unsuccessful companies. The Commission is awaiting a response from EKO-KOM.