The main developments in Competition Law and Policy for 2024 – Cyprus

Overview

This year (2024) marked a pivotal year in competition law enforcement and policy in Cyprus. With over 40 applications for concentrations reviewed by the Commission for the Protection of Competition, significant court rulings, and new legislative initiatives, this year showcased robust activity and evolving regulatory frameworks aimed at maintaining effective competition within the market.

Legislation

Competition law in Cyprus is governed by the Protection of Competition Law of 2022 (Law No. LegislationIn Cyprus, competition law is governed by the Protection of Competition Law of 2022 (Law No. 83(I)/2014). These laws, along with ancillary regulations such as the Leniency Programme and legislation for damages claims, aim to align national competition practices with EU standards.

The Commission for the Protection of Competition (CPC) remains the primary enforcement body for competition law, empowered to investigate, impose fines, and ensure compliance. The CPC’s actions and decisions this year have reinforced its role as a key actor in regulating and maintaining market integrity. 6(I)/2022. The proposed changes also empower the Administrative Court to modify CPC fines, enhancing the legal framework’s clarity and enforcement (see here

).

Notable Judgments

On 16 October 2024, the Supreme Constitutional Court of Cyprus upheld a CPC decision

against CYTA, the national telecommunications carrier in Cyprus, for anti-competitive pricing practices in its broadband (i-choice) and subscription television (miVision) services. The CPC imposed a EUR2,150.680 fine on violations that occurred between 2004 and 2008. The Court upheld CPC findings, rejecting any claims of inadequate investigation and reaffirming that competition enforcement is crucial. A portion of the fine (EUR430.136) was annulled earlier due to time-barred infractions. This case underscores the significant consequences of anti-competitive behaviour, serving as a strong warning to market participants.The CPC issued its decision on the joint acquisition of

Zeaborn TSM by Wilhelmsen and MPC Maritime Holding GmbH. The above decision has a significant impact on the maritime and shipping industry in Cyprus. After a thorough review of the facts and figures, the CPC approved a joint acquisition of Zeaborn TSM between Wilhelmsen Maritime Holding GmbH and MPC Maritime Holding GmbH. This was done to ensure that the transaction would not adversely affect the functioning of the market. The CPC also considered the merger’s impact on competition and ensured that the transaction wouldn’t unduly limit the market access of smaller companies. Finally, the acquisition was approved by the CPC, concluding it would not lead to a substantial lessening of competition, particularly given the diversity of the sector’s service providers.

Investigations and Fines

The CPC concluded its long-awaited investigation

into allegations that Bank of Cyprus included abusive terms in loan agreements while holding a dominant position. The CPC decided, after reviewing the facts and evidence, that the Bank did not hold a position of dominance in the lending market that could hinder the maintenance of competition. Due to the absence of a dominant market position during the relevant time period of the case, the CPC could not examine further any abusive terms contained in the Bank’s loans agreements. This decision reflects the CPC’s careful evaluation of dominance before pursuing abuse claims. The CPC also concluded an investigation into alleged violations of Article 3(1) Law (13(I),/2008) and Article 101 of the TFEU by enterprises that offer driving lessons

. The specific investigation arose after examination of an electronic message by an anonymous source, forwarded to the CPC by the Consumer Protection Service (CPS), which made reference to monetary discrepancies in relation to the hourly rate during driving lessons and driving examinations respectively. The CPC concluded after examining the CPS report that there was no indication of a combined or aligned behavior between the driving school in Cyprus and three related Driving Associations. The CPC concluded that the market was not a monopoly, but rather a large market with many driving schools. There is no evidence that driving schools have a uniform practice, as rates are determined by a variety of factors, such as the type of car used for training, the duration of the lesson and the cost of gasoline. The CPC decided unanimously that, if such a violation has not occurred, an examination of Article 101 TFEU is redundant. Provided that such violation has indeed not occurred, the CPC also unanimously decided that an examination of Article 101 TFEU is redundant.The CPC carried out an ex oficio investigation for alleged violations of Article 3 of the Competition Law and Article 101 of the TFEU

, finding that the Cyprus Medical Association (CMA) and some of its members, including scientific companies and local Medical Associations, related to their (non-)participation in Cyprus’ General Healthcare System (GHS). After considering all the facts, the CPC unanimously decided that the CMA violated Article 3(1)(b), Competition Law and Article 101(1) (b), TFEU. The investigation revealed that CMA took collective decisions to discourage its members from joining GHS. The CPC emphasised that such actions constituted a restriction of competition in the healthcare sector, highlighting its role in safeguarding the market (see here). Concentrations

The CPC approved several high-profile concentrations, including:

Healthcare Sector: The acquisition of C&S American Heart Institute Limited and C & SO Medical Properties Limited by Hellenic Healthcare Holding Single Member S.A. through Evacol Limited was approved on 7 October 2024. The CPC found no adverse impact on market competition (see here

).

• Retail Sector: The acquisition of C.A.C. Papantoniou Trading Limited by Hellenic Hypermarkets Sklavenitis S.A. through Guedo Holdings Limited was declared compatible with competition on 17 October 2024 (see here).
• Banking Sector: The long-awaited approval of the acquisition of Hellenic Bank by Eurobank S.A. was finalised in February 2024, following an in-depth investigation assessing potential impacts on competition in the Cypriot banking sector. In the analysis performed, the CPC considered market concentration, customer choice, and the growing role of non-traditional banks.
• Aviation Sector: The acquisition of TUS Airways Ltd by Loco Jet Ltd was approved by the CPC on 19 March 2024, declaring its compatibility with the functioning of competition within the market.
• Energy Sector: The acquisition of Planon Beheer B.V. from Schneider Electric SE through Schneider Electric Industries SAS received CPC’s approval following its decision that it meets the compatibility threshold of market competition.
• Education Sector: The creation of the University of Nicosia Greece Brand Medical Ltd from the University of Nicosia, through Nareliz Ltd, and Hellenic Healthcare Holdings Single Member S.A., though Hellenic Holding 3 (Cyprus) Ltd and the common control acquisition of VANES Ltd from the University of Nicosia, through Neroulio Ltd, and Hellenic Healthcare Holding 3 (Cyprus) received approval from the CPC. The CPC’s decision concluded that there would be no negative impact to either the upstream or the downstream markets as all medical schools will continue to offer a variety of options for clinical education. The CPC’s active role in monitoring mergers & acquisitions was highlighted by its review of over 40 concentration applications during 2024. This increase reflects the growing corporate activity in Cyprus and reinforces the need for vigilant oversight. Sector inquiries are non-targeted, general investigations that the CPC conducts into various sectors of the economy, and types of agreements in those sectors. They are a tool to gather market-wide data, and not to target any specific business. Its aim is to identify possible barriers or distortions of competition, which could lead to further investigation into specific cases. This decision was made based on information from the Ministry of Energy, Commerce, and Industry about the Retail Fuel Price Observatory, reports in the media, and a general perception that fuel price varies by district and location. The inquiry will be focused on wholesale and retail fuel pricing and supply terms of 95-octane gasoline, 98-octane gasoline, and diesel. The year 2024 was a busy one for Cyprus’ competition law, with increased activity, important decisions and a focus of legislative refinement. The CPC’s decisions and investigations underscore its dedication to enforcing competition rules and promoting a fair market environment.
• The upcoming year suggests that the CPC will continue to perform its role in a fair manner and in conjunction with EU trends, such as the focus on artificial intelligence and the further evolution in the legal landscape, particularly as Cyprus continues to align its laws with EU trends and addresses emerging challenges in the digital economy. Staying informed and compliant is crucial for businesses to navigate the competitive market landscape.

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