Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

Under Section 3 of the Act, “agreements between undertakings, decisions of associations  of undertakings and any concerted practices having as their  object or effect the obstruction, restriction or distortion of  competition within the Republic, shall be prohibited”. The Section goes on to provide a non-exhaustive list of such activities including, inter alia, agreements directly or indirectly fi …

The prohibition

Under Section 3 of the Act, “agreements between undertakings, decisions of associations  of undertakings and any concerted practices having as their  object or effect the obstruction, restriction or distortion of  competition within the Republic, shall be prohibited”. The Section goes on to provide a non-exhaustive list of such activities including, inter alia, agreements directly or indirectly fixing prices, restricting production, markets or technical development or investments, applying different terms to similar transactions or tying. Agreements prohibited pursuant to Section 3(1) are considered void ab initio (Section 3(2)).

Pursuant to the law, the Commission has now the exclusive competence to investigate and take decisions on the infrigement of Section 3 of the Act. 

Any such restrictive agreements or category thereof may be permitted, no prior decision by the Commission being required, where it fulfills certain requirements, namely that it:

- contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit;

- does not impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives; and

- does not afford such undertakings the possibility of eliminating competition in respect of a substantial part of the product in question.

Provision is also made for block exemptions which are granted pursuant to an Order of the Council of Ministers after the prior reasoned opinion of the Commission for the Protection of Competition is given. Under the previous Act, between 1997 and 2003, the Council of Ministers issued 11 block exemption orders. Some were carbon copies of EU regulations (in the insurance, road transport, air transport, maritime transport, liner shipping consortia and agricultural sectors). Block Exemption Order No PI 141/2014 inspired by EU Regulation No 330/2010 and published on 7 March 2014 sets out the general rule applicable to vertical agreements and concerted practices whereas Block Exemption Order No PI 140/2014 published on the same day covers certain categories of vertical agreements and concerted practices in the Motor Vehicle Sector.

In 2025 a decree implementing the block exemption regime for specific categories of vertical agreements and concerted practices that do not fall within the scope of EU law entered into force. It mirrors the principles established in the EU's Vertical Block Exemption Regulations (VBER), particularly Regulation (EU) 2022/720, providing a safe harbor for agreements that meet certain criteria, such as market share thresholds and the absence of hardcore restrictions.

A second decree introduces a block exemption in the Insurance sector, repealling the previous 2014 block exemption specific to that sector, aligning national law with the general competition rules under Article 101 TFEU. The 2025 decree marks the end of automatic exemptions for agreements and concerted practices in the insurance sector in Cyprus. Going forward, such agreements must be individually assessed under the general competition rules to determine their compatibility with competition law. 

Finally, a third block exeption decree on certain categories of vertical agreements and concerted practices in the automotive sector has been adopted. This decree amends the 2014 decree on vertical agreements in the automotive sector, applying Regulation (EU) 461/2010, as amended by Regulation (EU) 2023/822. The decree ensures that certain vertical agreements in the automotive sector, such as those related to the sale and servicing of motor vehicles, can benefit from automatic exemptions if they comply with the conditions laid down by EU law. This includes adherence to specific criteria regarding market shares and the absence of hardcore restrictions.

Global Competition Law

115. The prohibition

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Les notions juridiques connexes

115. The prohibition

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Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise