Czech Republic: Amendment to the Act on Electronic Communications

The Lower House of the Czech Parliament is currently discussing an amendment to Act No. 127/2005 Coll., on Electronic Communications, as amended (hereinafter the “Amendment”). The Bill focuses on two main points, both connected with the current issue of a lack of competition in the mobile telephone market.

Firstly, the Amendment sets a goal to additionally regulate some aspects of the contractual relationship between mobile operators and their customers. So far, there have been various problems regarding mobile operators taking advantage of their uniquely strong position in the market. As a result, the Amendment proposes that whenever a contract is concluded distantly (e.g. by telephone or on the internet), the mobile operator will be required to provide the potential customer with information on the proposed terms of the agreement in written form prior to concluding the agreement. If the mobile operator fails to do so, the agreement will be considered invalid.

To protect customers, the Amendment forbids the automatic extension of any agreement between a customer and the mobile operator which has been entered into for a fixed period of time. The Amendment’s aim is for mobile operators to make an offer to the customer before an agreement is terminated and the customer could expressly provide their consent to the extension of any agreement with the mobile operator.

The Amendment also forbids contractual penalties to be imposed where a customer prematurely terminates an agreement with the mobile operator which had been entered into for a fixed period of time.