Competing fairly - Malta

Updated 02/2011

Legal requirements

The Competition Act regulates competition and provides the principal legislative base for fair trading in Malta, along with the Consumer Affairs Act.

Anti-trust

Agreements

Section 5 of the Competition Act contains a general prohibition against restrictive agreements entered into between undertakings carrying on a commercial or economic activity, decisions by associations of undertakings and concerted practices among undertakings having the object or effect of restricting, distorting or preventing competition.

Abuse of dominant position

Section 9 of the Competition Act prohibits the abuse of a dominant position, such as charging discriminatory or predatory prices and limiting production. For instance, an undertaking which alone, or with a partner or partners, has a share of at least 40% of the relevant market is generally deemed to be in a dominant position.

Merger Regulations under the Competition Act came into force in January 2003.

Merging with another company — Malta

Cartels and abuse of dominance

Competition law prohibits cartels, whereby a common strategy is adopted, for instance on price, in order to eliminate the risks of competition, which in turn deprives consumers of the benefit of competition.

It also prohibits abuse of dominance, where smaller traders and consumers find themselves at the mercy of powerful companies which abuse their strong position on the market, by charging excessive prices.

Other types of unfair competition

The Consumer Affairs Act applies a number of EU laws in areas such as misleading advertising, doorstep selling and general product safety. It also covers product liability and unfair contract terms.

Consumer Affairs Act

Consumer protection

The Consumer Affairs Directorate within the Consumer and Competition Division deals with consumer complaints regarding purchases of goods and services providing adequate means of redress when consumers suffer justified grievances. Information is also provided to consumers by means of publications and other media in order to make them aware of their rights and responsibilities as consumers, whilst providing guidance as to how consumers’ best interests should be safeguarded at all times. Another function is to educate consumers of all ages by means of talks and lectures directed towards schools as well as to independent organizations with the aim of providing basic knowledge in areas such as consumer legislation, consumer rights and consumer protection.

Consumer Affairs Directorate

National competition authorities

Commission for Fair Trading

The Commission for Fair Trading reviews decisions taken by the Director of the Office for Fair Competition regarding merger proceedings under the Control of Concentrations Regulations.

Control of Concentrations Regulations

The Commission also reviews decisions taken by the Director of the office for fair Competition and has sole jurisdiction in determining upon any infringement of Articles 81 or 82 of the EC Treaty and serious infringements involving:

anti-competitive collusive practices (Article 5);
abuse of a dominant position (Article 9);

It is also within the Commission's jurisdiction to issue cease and desist orders or compliance orders with respect to serious infringements and infringements of Articles 81 and 82 of the EC Treaty.

The Commission also has sole jurisdiction under Article 15 to issue interim measures to suspend any restrictive practice.

Consumer and Competition Division

The Consumer and Competition Division of the Finance Ministry was set up following an operations review carried out in 2000. The division is responsible for the enforcement of the Competition Act, the Consumer Affairs Act, as well as the Trade Descriptions, and the Doorstep Contracts.

Consumer and Competition

Office for Fair Competition

The Director of the Office for Fair Competition is involved in the day to day administration and enforcement of the Competition Act and the Control of Concentrations Regulations. Together with his decisions he may issue Cease and Desist Orders and Compliance Orders on undertakings breaching the Competition Act.

Office for Fair Competition

Strict provisions govern company mergers

Mergers — Malta

Administrative procedures

Merger notification

A merger or acquisition must be notified to the Director of the Office for Fair Competition for approval before it is implemented. Notification must take place according the CN Form found in the Schedule to these Regulations within 15 working days from the date of the conclusion of the agreement, the announcement of the public bid or the acquisition of a controlling interest.

The CN Form of the Control of Concentrations Regulations is already added as a link above.

Litigation

The Director of the office for Fair Competition has the power to investigate a reasonable allegation in writing of a breach of sections 5 and 9 of the Competition Act. There is no mandatory form to be submitted nor any prescriptive period within which the complinant must make his complaint. It is sufficient that the complaint is addressed to him in writing. The Office for Fair Competition has issued guidance on how to make a complaint:

Resources

Competition law firms in Malta provide a listing of law firms, attorneys and lawyers specialising in competition law.

Competition law in Malta

Programmes

The Enterprise Support Incentives are designed to help enterprises meet the challenges of a global economy through networking, business development and improved international competitiveness.

Enterprise Support Incentives

Check also the legislation on this topic in:

Competing fairly - Malta