Coordination of the Czech Economic Policy in Network Industries with Practice in the EU

Abstract

The paper examines competition in network industries in the Czech Republic in making an assessment of national regulatory policies and their relationship to current EU recommendations. The author first considers the legal framework in which businesses operate and, if any, the degree (and form) of the regulation of exclusively provided services. Secondly, and in regards to the latter, the author considers how price policies and pricing may be influenced by the implementation of a competitive environment. If competition is introduced without the accompanying proper regulation of incumbent behavior, the resulting market may be a competitive one with monopolistic prices: the incumbent left with the power to expropriate rents in such a pseudo competitive market. The government of the Czech Republic should see to the careful implementation of EU directives in the national legal system. The current state of regulation in the Czech Republic is far from desired.international policy coordination; monopoly; regulation; European Union; competition; Czech Republic