Competition Law at Moldova
Here is an overview of Competition Law in Moldova:
🇲🇩 Competition Law in Moldova
1. Legal Framework
Moldova's primary competition legislation is Law No. 183/2012 on Competition, which replaced earlier laws from 1992 and 2000. This law is designed to promote fair competition, prevent monopolistic practices, and align with European Union competition standards. Recent amendments, notably Law No. 199/2023, have further strengthened the legal framework.
2. Key Provisions
Prohibited Practices: The law prohibits agreements, decisions, and concerted practices that restrict or distort competition, such as price-fixing, market-sharing, and bid-rigging.
Abuse of Dominant Position: Enterprises holding a dominant position are prohibited from abusing that position to the detriment of competition. A market share exceeding 50% is a presumption of dominance, but other factors are also considered.
Merger Control: Mergers and acquisitions that meet certain turnover thresholds require prior notification and clearance from the Competition Council.
Minor Importance Agreements: Agreements between enterprises with a cumulative market share below 10% (for competitors) or 15% (for non-competitors) may be exempted from prohibition, provided they do not contain hardcore restrictions like price-fixing.
3. Enforcement Authority
The Competition Council is an autonomous authority responsible for enforcing competition law in Moldova. It operates under the supervision of the Parliament and ensures compliance with legislation in competition, state aid, and advertising.
4. Sanctions and Penalties
Fines: Fines for infringements can range from 0.15% to 0.45% of the total turnover for procedural breaches, and 1% to 4% for material infringements. Factors such as the duration of the infringement can influence the fine amount.
Statute of Limitations: The statute of limitations for imposing sanctions is one year for unfair trade practices, three years for procedural breaches, and five years for other infringements.
5. Recent Developments
Amendments to Competition Law: In September 2023, Moldova enacted amendments to Law No. 183/2012 to align with EU competition standards. Key changes include the explicit prohibition of exceptions for anti-competitive agreements and the introduction of a relative presumption of dominance.
Ongoing Reforms: The government is working on further amendments to enhance the detection of cartels, establish clearer criteria for dominance, and improve enforcement mechanisms. These reforms aim to strengthen the institutional capacity of the Competition Council and align Moldova's competition law with EU legislation.
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