In an era of rapid digital transformation and heightened regulatory oversight, understanding competition law in Cyprus is no longer just a task for legal departments—it is a strategic necessity for every business operating within the Republic.

As of 2026, the Commission for the Protection of Competition (CPC) has signalled a more assertive stance, particularly regarding digital markets and “killer acquisitions.” This guide provides an essential overview of the current legal framework, notification thresholds, and enforcement trends to ensure your business remains compliant.

The Legal Framework: Law 13(I)/2022

The cornerstone of the regime is the Protection of Competition Law of 2022, which aligns Cypriot domestic law with EU standards (specifically Directive 2019/1). It grants the CPC extensive powers to investigate anti-competitive behavior and impose significant administrative fines—reaching up to 10% of a company’s annual turnover.

1. Restrictive Horizontal & Vertical Agreements

Under Article 3, any agreement between undertakings that has the object or effect of preventing, restricting, or distorting competition is prohibited.

  • Horizontal Agreements: Often referred to as “hardcore cartels,” these include price-fixing, market sharing, and the increasingly scrutinised “no-poach” agreements between competitors.

  • Vertical Agreements: These occur between businesses at different levels of the supply chain (e.g., manufacturer and retailer). In 2026, the CPC is paying closer attention to Resale Price Maintenance (RPM) and online sales restrictions that limit consumer choice.

2. Abuse of a Dominant Position

Holding a dominant market position is not illegal in Cyprus; however, abusing that power is. Prohibited behaviours under Article 6 include:

  • Imposing unfair purchase or selling prices.

  • Limiting production or technical development to the prejudice of consumers.

  • Applying dissimilar conditions to equivalent transactions (price discrimination).

  • Self-preferencing: A modern focus area where companies prioritise their own services on digital platforms they control.

Merger Control: Thresholds and Notifications

The Control of Concentrations Between Undertakings Law (L. 83(I)/2014) dictates when a merger or acquisition must be notified to the CPC. Cyprus operates a “suspensory” regime, meaning the transaction cannot be completed until clearance is granted.

Jurisdictional Thresholds

A concentration is deemed to be of “major importance” and requires notification if:

  1. The aggregate turnover achieved by at least two participating undertakings exceeds €3.5 million each.
  2. At least two of the participating undertakings have a turnover in Cyprus.
  3. At least €3.5 million of the aggregate turnover of all participating undertakings (taken together) is achieved within Cyprus.

Key Enforcement Trends for 2026

The 2026 landscape is defined by three major shifts:

  • Digital Markets Act (DMA) Synergy: The CPC is working closer than ever with EU regulators to ensure that digital “gatekeepers” do not stifle local Cypriot tech innovation.

  • Focus on Essential Sectors: Expect increased sector inquiries in Banking, Energy, and Food Retail, where price transparency remains a high priority for the Council.

  • FDI Screening Integration: Since April 2, 2026, the new Foreign Direct Investment (FDI) Screening Law has operated in parallel with antitrust reviews. Non-EU investors must now navigate both competition clearance and national security screenings simultaneously.

Conclusion: Proactive Compliance

With the CPC’s whistleblowing platform now fully operational and generating record leads, “wait and see” is no longer a viable strategy for antitrust in Cyprus. Businesses should conduct regular competition audits and ensure a robust “Dawn Raid” protocol is in place.