Proposed concentrations fulfilling the jurisdictional criteria for notification in the Republic of Cyprus are evaluated in accordance with the provisions of the “Law for the Control of Concentrations Between Undertakings of 83(I) of 2014” (hereinafter the “Law”). The pertinent authority for evaluating the proposed concentrations is the Commission for the Protection of Competition (hereinafter the “CPC”).
JURISDICTIONAL THRESHOLDS FOR NOTIFICATION
Article 3 of the Law prescribes the three cumulative jurisdictional criteria rendering a proposed concentration as one of major importance and thus mandating its notification to the CPC. These are:
- The aggregate turnover for each of at least two of the participating undertakings is more than EUR 3.500.000; and
- At least two participating undertakings achieve turnover within the Republic of Cyprus; and
- At least EUR 3.500.000 of the aggregate turnover of all participating undertakings is achieved within the Republic of Cyprus.
MEANING OF CONCENTRATION
According to Article 6 of the Law, a concentration occurs when there is a “change of control on a lasting basis”. This may be the result of the following:
- A merger between two or more previously independent undertakings or parts of undertakings;
- An acquisition by one or more persons already controlling at least one undertaking, or by one or more undertakings, of direct or indirect control of the whole or parts of one or more other undertakings;
- The creation of a joint venture, performing on a lasting basis all the functions of an autonomous economic entity.
According to Article 40 of the Law, failure to comply with the notification obligation as stipulated by the provisions of the Law can lead to the imposition of the following administrative sanctions by the CPC:
- An administrative fine not exceeding 10% of the total annual turnover of the undertaking which has the obligation of notification in the financial year immediately preceding the concentration;
- An administrative fine not exceeding EUR 8.000 for every day during which the infringement continues.
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TROJAN ECONOMICS – OUR SERVICES
- Notification requirement assessment
- Relevant market delineation (SSNIP test, Critical Loss Analysis)
- Analysis of competitive effects (unilateral, coordinated and conglomerate)
- Identification and analysis of theories of competitive harm
- Identification and quantification of efficiency claims in merger proceedings
- Econometric analysis and merger simulation
- Guidance and participation in remedies negotiation proceedings with the competition authority
- Monitoring compliance with commitments attached to a clearance decision
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Disclaimer: This document is meant to provide an introduction to Merger Control in Cyprus and is intended for general information purposes only. It is not intended as and does not constitute legal and/or other advice.