INTERGRAM´s Fees Charged for Unoccupied Rooms Followed by the First-Instance Fine of CZK 20 million

2020-12-16
By its first-instance decision of 14 December 2020, the Office for the Protection of Competition imposed fine of CZK 20,799,000 on INTERGRAM z.s., a collective administrator of rights of performing artists and producers of phonograms and audio-visual fixations for abuse of dominant position. The decision has not yet come into force and the undertaking may file an appeal against the decision.

INTERGRAM abused its dominant position by forcing providers of accommodation services in the Czech Republic to pay fee for the usage of copyrights of performing artists and producers of phonograms and audio-visual fixations not taking into account the occupancy of rooms in accommodation facilities from 1 January 2009 to 6 November 2014. It required the operators of accommodation facilities to pay the fee even for unoccupied rooms, where the above-mentioned right could not be used. As INTERGRAM forced accommodation facilities to follow this inadequate commercial condition, it violated both the Czech Competition Act and also Article 102 TFEU.

INTERGRAM infringed competition rules similarly to the collective rights management organisation OSA - Ochranný svaz autorský pro práva k dílům hudebním, z.s. in connection to which the Office issued a decision imposing fine which has already come into force.

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