Competition Law at Estonia
Here’s a concise overview of Competition Law in Estonia:
Competition Law in Estonia
Legal Framework
Estonia’s competition law is primarily governed by the Competition Act (Konkurentsiseadus), first adopted in 1993 and updated periodically.
The law is fully aligned with the European Union competition rules, as Estonia is an EU member since 2004.
Enforcement is carried out by the Estonian Competition Authority (ECA).
Main Objectives
Promote and safeguard effective competition in the market.
Prevent anti-competitive agreements and abuse of dominant position.
Control mergers to avoid market dominance and reduced competition.
Protect consumer interests.
Key Provisions
Prohibition of Anti-competitive Agreements
Agreements between undertakings that restrict competition are prohibited.
Includes cartels, price fixing, market sharing, bid rigging.
Certain agreements can be exempted if they improve efficiency and benefit consumers.
Abuse of Dominant Position
Firms with significant market power cannot abuse their position.
Examples: unfair pricing, limiting production, discriminatory practices, tying.
Merger Control
Mergers and acquisitions that meet certain turnover thresholds require notification and approval.
The Authority reviews mergers to ensure they do not significantly impede competition.
Public Procurement and Sector-Specific Regulation
The law also intersects with rules on public procurement and regulated sectors.
Enforcement and Sanctions
The Estonian Competition Authority can investigate suspected violations.
Powers include dawn raids, information requests, and fines.
Fines can be significant, up to 10% of the company’s annual turnover.
Decisions of the Authority can be appealed in courts.
European Union Integration
Estonia follows Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU).
The Estonian Competition Authority cooperates with the European Commission and other national competition authorities through the European Competition Network (ECN).
Summary Table
| Aspect | Details |
|---|---|
| Main Law | Competition Act (Konkurentsiseadus) |
| Enforcement Authority | Estonian Competition Authority (ECA) |
| Anti-competitive Agreements | Prohibited, with some exemptions |
| Abuse of Dominance | Prohibited |
| Merger Control | Mandatory notification & review |
| Penalties | Fines up to 10% of annual turnover |
| EU Integration | Fully aligned with EU competition rules |
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