Competing fairly - Cyprus

Updated 10/2009

Legal requirements

The Protection of Competition Act provides the legal basis for competition issues.

The Protection of Competition Act

More specifically, in combination with the Control of Concentration of Enterprises Act, it lays down the regulatory framework for maintaining effective competition within the Cypriot market and creating the required conditions to offer consumers cheaper and better quality goods and services.

Control of Company Concentrations Act

As far as competition is concerned, no additional obligations are imposed on foreign investors who come to Cyprus.

Anti-trust regulations

Examples of unfair competition contrary to a healthy competition are the agreements made between two or more companies, concerted practices, abuse of market dominance and abuse of economic dependence.

Agreements

All agreements between companies which result in restraining competition, as in cases where this practice has resulted in the direct on indirect fixing of unfair prices, limiting production, distribution, or investment etc. to the detriment of consumers.

Agreements, decisions and concerted practices

Abuse of dominant position

Any abuse of dominant position by an undertaking in a dominant position in all or part of the domestic market for a product is forbidden. Some companies are consequently put in a disadvantageous position in comparision to its competitors.

Abuse of dominant power

Other types of unfair competition

The abuse of economic dependence which mainly concerns the sudden and unjustified interruption of long-term business relationships is also forbidden.

Interruption of long-term business relationships

National competition authorities

The Commission for the Protection of Competition (CPC) oversees competition issues in Cyprus.

The CPC has sole responsibility for preserving free and unfettered competition in all sectors of the economy, with the aim of achieving economic development and progress, protecting consumer interests and safeguarding a competitive Cypriot market.

Commission for the Protection of Competition

The CPC has the power to impose financial penalties. Flouting a CPC decision constitutes a criminal offence punishable with a prison sentence of up to two years and/or a financial penalty of as high as €340.000.

Frequently Asked Questions: Commission for the Protection of Competition

The Competition and Consumer Protection Service of the Ministry of Commerce, Industry and Tourism aims to achieve continuous alignment with EU legislation and improve competition conditions in the market of Cyprus through relevant research and the existence of price observatories.

Strict provisions govern company mergers

Mergers — Cyprus

Administrative procedures

Merger notification

Mergers should be notified to the Commission for the Protection of Competition. Legislation provides for the existence of mechanisms to prevent the creation or enhancement of any dominant position enjoyed by one or more companies, giving priority to prevention.

Merger notification form

Litigation

Anyone can report a violation of the Protection of Competition Act in writing to the CPC, disclosing all information listed in the appendix of the Act so that the CPC can investigate the submitted complaint.

Programmes

The CPC has drawn up a fine discount and immunity plan to encourage complaints about illegal joint ventures and/or illegal cartels for their detection and elimination.

Cartel Immunity and Fine Discount plan

Check also the legislation on this topic in:

Competing fairly - Cyprus