Competition Law in CyprusUpdated on Friday 04th December 2015
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Legislation related to competition in Cyprus
After Cyprus joined the European Economic Community, the Government was required to adopt or create a legislation for the protection of competition. Cyprus has set in place two legal frameworks in order to enhance protection against unfair competition:
- - the Protection of Competition Law of 1989,
- - the Control of Concentration between Enterprises Law of 1999.
The Competition Law was amended in 2000 and provides for restrictions in agreements and abuse of dominant position, while the Control of Concentration Law refers to mergers and acquisitions in Cyprus.
The Cypriot Competition Law
The legislation on competition in Cyprus covers the establishment of the Commission for Protection of Competition (CPC) and provides for the institution’s responsibilities and powers. The CPC will mostly conduct investigation procedures related to infringements of the regulations on restrictive agreements and misuse of dominant position. The CPC will have access to Cypriot companies’ corporate documents and accounts.
The contracts concluded by Cypriot companies must exclude the effect of elimination, restriction or misinterpretation of competition with respect to:
- - fixed prices,
- - restrictions on production,
- - market distribution,
- - consumer discrimination,
- - inclusion of deceitful clauses on contracting parties.
For complete information related to the Competition Law you can refer to our lawyers in Cyprus who can also help you prepare different types of agreements.
The Concentration Law in Cyprus
The second legal framework regulating competition between companies in Cyprus is the Control of Concentration between Enterprises Law, shortly known as the Concentration Law. This legislation focuses on merger and acquisition transactions. The following actions could contravene the Cypriot law on concentration:
- - the merger of two or more independent companies,
- - the direct or indirect acquisition of a company by a third party already controlling other entities; acquisition can only be done by purchasing securities or assets in a company or through a mutual agreement.
There are also certain thresholds companies undergoing a merger or an acquisition are required to notify the CPC about. These thresholds are:
- - if at least two of the companies have a global combined turnover of 3,417,202 euros,
- - if at least one of the companies carries out commercial activities in Cyprus,
- - if the 3,417,202 euros turnover is used to supply goods or services in Cyprus.
For complete information related to the Competition Law in Cyprus, do not hesitate to contact our law firm.