Prague city councillors on Monday approved an out-of-court settlement of a dispute with two advertising companies that illegally advertised on city land.

"The agreement represents the quickest and most economical solution to the situation. The court proceedings would almost certainly not have led to the early evacuation of the land if all ordinary and extraordinary remedies had been exhausted by the opposing party. In addition, if the advertising companies fail to fulfil any of the obligations they undertook in the settlement agreement or court settlement, they can be enforced in execution or in the framework of enforcement," says Adam Zábranský, Councillor for Property, Transparency and Legislation.

As part of the agreement, euroAWK will pay the amount of almost CZK 2.5 million owed to the city for the use of the city's land. Prague for the placement of billboard-type advertising equipment on the basis of lease agreements from 2000, which were finally found invalid by the courts. Most of the advertising devices (about 600 pieces) were removed in 2018-2020. In the following years, inspections revealed another 80 pieces of advertising devices placed on municipal land, which Prague considers to be unjust enrichment. The agreed amount corresponds to the expertly determined normal rent for the use of the City Hall land. The amount of the agreement is based on the agreed value of the land used by the City of Prague in the relevant period.

The agreement with BULLDOG ADVERTISING concerns four pieces of advertising navigation boards on land in Hostivař and Šterboholy, the lease of which expired on 31 December 2020. After a year of litigation, an agreement was reached that BULLDOG would vacate the land by 31 December 2024. Prague calculated the unjust enrichment for 2024 at more than CZK 65,000, which has already been paid by the company as rent.