Press Releases

Dear Chairperson and Members of the Commission for the Protection of Competition,

Dear Rector of the University of Cyprus,

Dear Representatives of the Directorate-General for Competition of the European Commission and National Competition Authorities,

Ladies and gentlemen,

It gives me great pleasure to be joining the distinguished guests attending today’s conference on recent developments in Competition Law, co-organised by the Commission for the Protection of Competition of the Republic of Cyprus and the University of Cyprus. The recent health and geopolitical crises and the subsequent problems created in world markets certainly highlight the crucial importance of fair trade and competition and the need for an effective implementation of the Competition Law for the benefit of both businesses and consumers.

Governmental responses to the emerging conditions of international instability have been varied, but, more or less, all pointed to actively supporting the competitiveness and viability of national economies. Only recently, the Cypriot government approved a new package of support measures, raising the total budgeted to this end to €256 million within one year of governance. These measures aim at supporting households and businesses whose incomes have been affected by the crises and inflationary pressures, with an emphasis given to reducing electricity cost, lowering taxation on transport and heating fuels, and applying a zero VAT rate on 11 basic consumer products. The government is particularly sensitive to maintaining and improving the living standards of our fellow citizens and will continue to support those in need, within the context of sustainable and balanced public finances and the viable development of the Cypriot economy.

It is in this regard that preserving and promoting fair competition practices in the market is a driving force for growth, as it ensures a level playing field for businesses while guaranteeing quality, choice, and fair pricing for consumers.

The importance that the European Union places on fair competition is reaffirmed by Directive 1 of 2019, which empowers National Competition Authorities to enforce Competition Law more effectively and ensure the smooth functioning of the Internal Market. The Directive establishes rules to ensure that Competition Authorities have the necessary guarantees of independence, resources and enforcement powers for the effective application of Articles 101 and 102 of the Treaty on the Functioning of the EU in order to prevent distortions of competition in the market and protect businesses and consumers from disadvantageous positions. The recent enactment of the Protection of Competition Law of 2022, focuses on the strength of the Commission for the Protection of Competition, through vesting with the necessary guarantees and enforcement powers.

In 2022 and 2023, the overhaul of the European Commission’s competition policy progressed steadily. A new Vertical Block Exemption Regulation entered into force and new Guidelines on sustainability agreements of agricultural producers were also published, modernising the old rules and providing more clarity. Undoubtedly, the recent approval and implementation, by the European Commission of the Digital Markets Act is also of significant importance. This Regulation, the provisions of which will be transposed to national law on the Protection of Competition, is a crucial tool in the hands of the European Commission to regulate the effects of market digitalisation on fundamental rights, competition, and, more broadly, European societies and economies. Innovation entities and technology startups will have new opportunities to compete and innovate in the online platform environment, while consumers will have access to more and better services and fair prices.

Now the European Commission is planning to review Regulation 1/2003 on the implementation of the rules on competition laid down in Articles 101 and 102 of the Treaty.

In these new working conditions, the Ministry of Energy, Commerce, and Industry, having the responsibility of consumer protection, closely monitors the market and maintains continuous collaboration with the Commission for the Protection of Competition and all relevant entities, with an eye to preventing market distortions, anti-competitive practices, or abuses of dominant positions in Cyprus.

As such, I look forward to the presentations and discussion to follow, thanking the Commission for the Protection of Competition and the University of Cyprus for their kind invitation and wishing you all a productive conference.

Thank you.

(NGian/IA)