Competition Law at Cyprus
Competition Law in Cyprus
Cyprus’ competition law framework is aligned with the European Union’s competition rules, as Cyprus is an EU member state since 2004. The primary legislation governing competition is the Control of Concentrations between Undertakings Laws, 2008 to 2021 and the Law on the Control of Restrictive Practices and Abuse of Dominant Position, 2008 to 2021. These laws operate alongside EU competition regulations and are enforced by the Commission for the Protection of Competition (CPC) in Cyprus.
Key Features of Cyprus Competition Law:
Prohibition of Anti-Competitive Agreements
Agreements or concerted practices that prevent, restrict, or distort competition within Cyprus are prohibited, including:
Price fixing
Market sharing
Production limitations
Bid rigging
Both horizontal and vertical agreements are covered, consistent with Article 101 of the Treaty on the Functioning of the European Union (TFEU).
Abuse of Dominant Position
It is illegal for a dominant undertaking to abuse its position by:
Imposing unfair prices or trading conditions
Limiting production or technical development
Discriminating between trading partners
This follows Article 102 of the TFEU.
Merger Control
Mergers, acquisitions, and joint ventures that meet specific turnover thresholds must be notified to the CPC for approval before completion.
The CPC assesses whether the concentration would significantly impede competition.
Enforcement and Sanctions
The CPC has investigatory powers including inspections and requests for information.
Breaches can result in fines up to 10% of the undertaking’s worldwide turnover.
Decisions of the CPC can be appealed in the Cyprus courts.
Leniency and Immunity Programs
The CPC provides leniency to undertakings that voluntarily disclose cartel involvement, potentially reducing or eliminating fines.
Alignment with EU Law
Cyprus competition law works in harmony with EU competition law. The CPC cooperates with the European Commission and other national competition authorities.
Summary Table:
| Aspect | Cyprus Competition Law Highlights |
|---|---|
| Governing Laws | Control of Concentrations Law; Restrictive Practices Law |
| Enforcement Authority | Commission for the Protection of Competition (CPC) |
| Anti-Competitive Agreements | Prohibited (price fixing, market sharing, etc.) |
| Abuse of Dominance | Prohibited (unfair pricing, discrimination, etc.) |
| Merger Control | Mandatory notification & review for qualifying deals |
| Penalties | Fines up to 10% of global turnover |
| EU Law Alignment | Fully harmonized with EU competition rules |
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