The Administrative Court of Cyprus has annulled a decision of the Cyprus Commission for the Protection of Competition (CPC), which had imposed substantial fines for alleged competition law infringements due to an incorrect market definition affecting the application of vertical exemption rules.
The CPC’s decision imposed administrative fines of €700,000 on CIC (Appeal No. 727/2015) and €20,000,000 on Daimler (Appeal No. 831/2015), along with an obligation to cease and refrain from the identified infringement. The CPC argued that the companies’ selective distribution system restricted competition and did not meet the criteria for vertical exemption based on a flawed market definition.
However, the Administrative Court ruled that the CPC had incorrectly defined the relevant market, leading to the annulment of its decision.
🔹 This marks the first court decision in Cyprus that annuls a CPC ruling due to an erroneous market definition, setting a significant precedent in competition law enforcement.
At Trojan Economics, we are proud to have provided specialised advisory services concerning market definition analysis during the administrative proceedings before the CPC.
We remain committed to delivering rigorous economic analysis and expert guidance in complex competition law matters, ensuring our clients are supported with data-driven, strategic insights.
For further information on how we can assist businesses in competition law and economic analysis, contact us at here.
📄 Read the full court decision here.
