Trojan Economics has submitted a formal proposal to the Cyprus Commission for the Protection of Competition (CPC) to amend the Control of Concentrations between Undertakings Law (Law 83(I)/2014). These proposed amendments aim to modernize the existing regulatory framework for business mergers and acquisitions, thereby improving efficiency and reducing administrative burdens on businesses.

Key highlights of the proposal:

    1. Revision of thresholds for concentrations of major importance
      The proposal calls for a significant update to the thresholds that define when a concentration is considered of “major importance”, ensuring they reflect current economic realities, such as Cyprus’ integration into the European Union, market globalization, and inflationary trends over the past 25 years.
    2. Introduction of a simplified procedure for certain Concentrations
      Trojan Economics recommends introducing a simplified assessment process for mergers that are unlikely to raise competition concerns, such as those involving minimal market overlap. This measure would align Cyprus’ approach with best practices in other EU member states and reduce the administrative burden on both businesses and the CPC.

The Need for Reform:

The current thresholds and procedures for notifying concentrations were established in 1999 and no longer reflect the complexities and dynamics of today’s business environment. As a result, the CPC is often required to assess concentrations that do not present significant competition risks, using valuable resources and causing unnecessary delays for businesses. The proposed amendments would allow the CPC to focus on more critical cases that have a greater impact on market structure and consumer welfare, while also facilitating smoother and faster approval processes for businesses.

Dr. Panagiotis Agisilaou, Director of Trojan Economics, stated:

“The proposed reforms are a win-win for both businesses and the Commission. By updating outdated notification thresholds and introducing a streamlined process for certain mergers, we can reduce unnecessary regulatory burdens and create a more favorable environment for business growth and investment in Cyprus. At the same time, we ensure that the CPC can allocate its resources more effectively, focusing on cases that truly affect market competition.”

Looking Ahead:

If adopted, these changes will align Cyprus with international best practices and contribute to a more predictable and efficient business environment, promoting investment and economic development. Trojan Economics has urged the CPC to launch a public consultation process, allowing other stakeholders to provide their views on these proposed amendments.