Mediafax (Mediafax)
Markets  |  November 09, 2012 00:55:05

Court in Brno decide whether Student Agency will pay millions for cheap tickets between Prague and Brno


BRNO (MEDIAFAX) - The Brno Regional Court on Friday, a decision on the application, the company Student Agency against the decision of the Office for Protection of Competition (OPC), which granted the penalty for that ride the route from Prague to Brno too cheaply. Mediafax agency's spokeswoman said the regional court Miroslava Sedláčková.

Student Agency appealed against a fine of CZK 5.154 million, which came from the Office for abuse of dominant position on the bus route Prague - Brno and back. Antiomonopolní Office Student Agency originally imposed a penalty of CZK 6.185 million, but then declined to about one million crowns.

"We defend the rights of consumers at low prices resulting from competition. With the decision of the Office which was Student Agency fined for that ride the route from Prague to Brno too cheaply, we disagree," said spokesman Alex Ondrůj Student Agency in a statement.

Fine, which the company has to pay according to the Office, according Ondruą taxes for the Student Agency has responded to market developments and to offer its customers the advantage of lower prices as competition. "Antitrust Authority fines grant claims not to be a problem when someone sells their goods or services of poor quality or expensive, but it affects those who offer cheap and quality services, Student Agency said in a statement.

"We will never surrender our right to fight for quality customer service and low prices. No authority, nor one that has the exact opposite of the job description, can distort competition competitors by issuing an official decision will damage the customer to ultimately defended the interests of individual business competitive complainant, "said Radim Jančura, founder and owner of Student Agency.

Student Agency at the Regional Court in Brno relies on four basic points which challenges the decision of the Office. The firm is incorrectly defined the relevant market, discrimination, abuse of student success services and setting a precedent Agency pricing trap.

According to the Office company abused from early December 2007 to early March 2008 its dominant position. Reduced prices of credit for one-way transportation tickets at 50, later 95 crowns. According to the Office of this meeting was to exclude from the market competing transport company Asiana.

Office according to his former statement nepokutoval Student Agency at low prices, but for their targeted application to displace a competitor from the market.Low prices for select tickets were provided by Asiana according to OPC insertion character, this company has also been in a dominant position, because her conduct did not constitute a violation of law. The decrease in prices by Student Agency Office was not motivated by an effort to provide benefits to customers, but trying to squeeze competitors out of the market, which should reduce customers in the selection of the carrier.

Asiana competitive pressure Student Agency did not last and at the end of 2009 no longer ride on the route Karlovy Vary - Prague - Jihlava - Brno. His ten buses later used only for irregular excursion transport, such as travel agents or representation or hockey Extraliga clubs. "Regular transport, we will not pay," said company owner when Alexei Litvin.His company is now primarily devoted to the sale of tickets, hotels, accommodation, visas and insurance.


George Novacek, novacek@mediafax.cz

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Soud v Brně rozhodne, zda Student Agency bude platit miliony za levné jízdenky mezi Brnem a Prahou

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