coronavirus | In Principle

The COVID-19 pandemic is paralysing the global economy, but it is not the virus itself preventing businesses from operating. States seeking to protect their citizens against danger are introducing unprecedented limitations on civil rights and freedoms, rendering operations in some sectors of the economy impossible. In other sectors, business has become more burdensome, costly or risky. This has generated a heated debate over who should bear the financial consequences of limitations imposed on businesses and the huge resulting losses.

On 28 April 2020 a government bill including the proposed “Anti-Crisis Shield 3.0” was filed with the parliament. One of the proposals is to amend the Film Act to require providers of on-demand audiovisual media services to make quarterly payments to the Polish Film Institute equal to 1.5% of their revenue from fees for delivering content or for transmission of commercial messages, whichever figure is higher in a given payment period. The duty to pay the new “fees” would enter into force on 1 July 2020.

The state’s enforcement of epidemiological restrictions (commands and prohibitions), despite many doubts as to their constitutionality, currently constitutes lawful exercise of public authority. Nonetheless, even actions by the state with the blessing of the law may entail a risk of COVID-19 infection for doctors, nurses, police and others. Serious detriment to their health—or even death—as a result of infection may give rise to liability on the part of the State Treasury under the principle of equity.

The new president of the Office of Competition and Consumer Protection plans to reinforce the regulator’s activity aimed at preventing negative market impacts. His priority will be elimination of harmful practices—not necessarily punishment. Proceedings are to be conducted faster and more efficiently. There will also be many internal changes at UOKiK.

Entry into force of the Anti-Crisis Shield, i.e. the 31 March 2020 amendments to the Anti-Crisis Act, has had a strong impact on the real estate market, especially the rental market for space at shopping centres. In addition to the widely discussed Art. 15ze, which has extinguished mutual obligations of the parties to lease agreements, the parliament has also introduced another important provision which may significantly affect the rights and obligations of not only the parties to lease agreements, but also other participants in commerce.

In March, the European Commission recommended that member states introduce temporary restrictions on travel to the European Union (through 15 May 2020). The vast majority of European countries coordinate border control measures at the EU level. States are again fencing their territories, suspending the free movement of persons also between regions. Restricting travel may not only interfere with holiday plans and delay the delivery of goods and services, but also slow down legal proceedings. However, this can be prevented through legal assistance from cooperating courts of member states.

Restrictions resulting from the state of epidemic, as well as extensive changes in law coming into force overnight, require a fresh look at many issues, including such mundane issues as when administrative decisions become final.

Restrictions introduced by individual member states to limit the spread of coronavirus also have a significant impact on businesses involved in international shipment of waste. The European Commission has taken steps to harmonise approaches of individual states to these issues and make it easier for businesses to access the specific new rules in force in each country.

The battle with the coronavirus is dynamically entering another phase. After the initial shock, we are realising that technology may have a crucial impact on the rate of return to a somewhat more normal life. This doesn’t mean just biotech. Solutions keeping the virus under relative control until effective vaccines reach the market can prove just as important.

For obvious reasons, remote signing of contracts has assumed great significance recently. To conclude a contract, is it sufficient to exchange a few emails or to transmit electronically signed documents? It depends.

We are consolidating our communications on doing business during the pandemic. On AgainstCovid.law we have collected nearly 150 accessible and practical FAQs, dozens of articles from our blogs In Principle and HRlaw.pl, and a few webinars (these numbers will gradually grow). As always, we strive to make the new site clear and to the point.

Many businesses and their lawyers are now analysing the impact of the coronavirus on their contractual obligations. In the case of some contracts the situation is further complicated by the fact that the contract is governed by foreign law.