EKO-KOM has dominated the segment for more than 20 years. Credit: Aleksandra Suzi via Shutterstock.

The European Commission (EC) has issued a formal notice to Czechia, urging the country to foster a more competitive environment for waste collection and recovery in its packaging sector.  

The EC informed Czechia that appointing EKO-KOM as the sole company authorised to collect and recover domestic packaging waste for more than 20 years may infringe on the EU’s competition rules. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

An EC investigation was undertaken following a complaint from Czech company REMA AOS, which said it faced barriers when attempting to enter the market. 

Aside from REMA AOS, five other companies also failed to enter the market segment. 

Since the Czech Packaging Act came into effect in 2002, EKO-KOM has been the country’s exclusive operator for packaging waste collection and recovery, serving more than 20,000 businesses, meaning that no other company has been able to secure authorisation for these services.  

The EC’s preliminary findings suggest that the Czech Packaging Act and its enforcement may have erected significant barriers to entry, including stringent authorisation requirements and the ability of EKO-KOM to influence the authorisation process of potential competitors.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

These barriers have effectively granted EKO-KOM a de facto monopoly for more than two decades. 

The commission said that it believes these state measures created unequal opportunities and placed EKO-KOM in a position of conflict of interest.  

EC executive vice-president of competition policy Margrethe Vestager said: “The Czech market for packaging waste collection and recovery has been dominated by the incumbent operator for more than two decades.  

“We are concerned that Czech measures have prevented entry of rival companies, with a consequent negative impact on prices, quality, innovation and choice. Therefore, we have sent a Letter of Formal Notice to Czechia. Ensuring effective competition is essential for achieving a sustainable and circular economy, one of the main building blocks of the European Green Deal.”