Updates on Legal Developments in Cyprus: Fall Meeting 2022
Important legislative developments in Cyprus include the focus on reinforcing the powers of the Cyprus Commission for the Protection of Competition, with no substantial amendments to the previous legal framework. Relevant case law with EU importance, such as Decision 52/2021 and Decision 6/2022, shed light on issues related to tender participation and healthcare services exclusion. The team is actively involved in handling antitrust cases, including investigations and challenges against regulatory decisions.
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Fall Meeting 2022 COUNTRY UPDATE - CYPRUS Roundtable session 4 November 2022
A. Changes important legislative developments in team members and Ioanna Kyriakidou rejoined our team after spending 5 months as a Blue Book Trainee at DG Comp. The Protection of Competition Law, 2022 Aims to transpose the ECN+ Directive. Focuses on reinforcing the powers of the Cyprus Commission for the Protection of Competition (CPC). Other matters resolved: withdrawal of complaints, access to file, searches, interviews a.o. No amendments to the substantial provisions of the previous legal framework. 2
B. Relevant case law with EU importance Decision 52/2021 (published in Spring 2022): Ex electricians, electrical and mechanical engineers and consultant electrical & mechanical engineers undertakings) for their Protocol of Cooperation that their members should only participate in tenders (i) conducted by consultant engineers that were their members and (ii) conducted through the nominated subcontractor process . officio investigation against the trade associations of (as associations of Relevant market: supply of electrical and mechanical services for construction products. The lack of adequate public measures to tackle illegal contractors was not considered a valid defense. 3
B. Relevant case law with EU importance Decision 6/2022: Complaint by a Doctor against the entity tasked with adm/ing the General Healthcare System ( OAY ) for alleged practices excluding him from the relevant market for the provision of gynecological examinations, sampling and consultation services. The acts that were the subject of the complaint were found not to be of an economic nature. In the specific instance, OAY was considered not to be acting as an undertaking. It was found to be exercising official authority. the power of OAY to categorise medical services (according to the conditions in the GHS Law) did not constitute an economic activity 4
C. Cases handled by the team - Antitrust Two pending antitrust investigations before the CPC: Defending: One relating to the shipping liner markets (following a complaint by a logistics company). Acting for an agent of military vessels of foreign sovereigns, in its complaint against the Operator of the Multi-Purpose Terminal of the Limassol Port for the closure of the market after the concession. Raised stand-alone competition administrative law recourse administering the General Healthcare System) as part of a challenge of its Admin. Decision refusing entry of our client into the Health Service as a service provider. grounds in an against OAY (body 5
C. Cases handled by the team Merger Control In the last 6 months, we have acted for 7 merger control cases, all of which have received clearance, and 2 more case are currently pending. Notable cases: Rivulis acquisition of Jain: Global leaders in irrigation systems. Affected markets in micro irrigation/sub-markets. Cleared without remedies in Cyprus. Demerger of two Shipping Groups (Marlow - Columbia) following their merger in 2017. Examined by Cyprus and Maltese competition authorities as two separate joint to sole concentrations. Examining an interesting jurisdictional question in an acquisition of PV Parks that are not yet operational but will certainly be after closing (Q. Is it necessary to make an adjustment in the Target s turnover when examining meeting of thresholds?) 6
