On July 19 2016 the Commission for the Protection of Competition announced that it had issued a statement of objections towards companies active in the concrete market due to the finding of a prima facie infringement of Sections 3(1)(a) and 3(1)(c) of the Protection of Competition Laws 2008 and 2014 (the Competition Law) as amended.

The infringement concerns the potential manipulation and distortion of tendering procedures initiated by the Ministry of Transport, Communications and Works for the supply of ready-mix concrete in Categories C15, C20, C25 and C30 in Areas 1, 2, 3 and 5 in the District of Limassol.

The prima facie infringements centred on the alleged violation of:

  • Section 3(1)(a) of the Competition Law regarding directly or indirectly fixing purchase or selling prices or any other trading conditions; and
  • Section 3(1)(c) of the Competition Law regarding sharing markets, geographically or otherwise, or supply sources by:
    • allocating the abovementioned tenders; or
    • directly or indirectly fixing ready-mix concrete prices.

On July 26 2016 the commission announced the launch of an investigation into Hermes Airports Ltd for a prima facie infringement of Section 6(1)(a) of the Competition Law – namely, the abuse of a dominant position by directly or indirectly fixing unfair purchase or selling prices or any other unfair trading conditions.

The investigation followed a complaint filed by Y Karydas Car Engineering & Valeting Services Ltd (DRIVE & FLY) against Hermes Airports Ltd, which allegedly held a dominant position in the provision of services and management of Larnaca International Airport and the provision of airport parking space to other undertakings. Y Karydas alleged that through its behaviour and the trading conditions imposed on the complainant for the provision of valet services, Hermes had aimed to place its competitors in the market for the provision of parking services to passengers – in particular, valet parking services – at a competitive disadvantage and remove them from the market.

As in all investigations, the commission will follow the required procedures, including hearing the responses of the concerned parties before reaching a final decision.

For further information on this topic please contact Pantelis Christofides at L Papaphilippou & Co LLC by telephone (+357 22 271000) or email (pc@papaphilippou.eu). The L Papaphilippou & Co website can be accessed at www.papaphilippou.eu.

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