On January 17 2017 the Commission for the Protection of Competition announced that after the conclusion of a preliminary investigation, it had decided to initiate proceedings against the Mechanical and Electrical Contractors Association (SEMHEK) under Section 17 of the Protection of Competition Laws of 2008 and 2014 for the prima facie infringement of Section 3.1.b of said laws.

Section 3.1.b prohibits:

  • all agreements, decisions and concerted practices between undertakings which could limit or control production, markets or technical development; and
  • investments which have the object or effect of restricting or distorting competition.

The preliminary investigation followed a complaint filed by Pafos Municipality. The commission reached a prima facie finding that SEMHEK, as an association of undertakings, had set out its aim (following its annual general meeting) in a press release and circular to prevent its members from participating in the complainant's open tender procedure for the restoration of the Pafos Municipal Market, which had been announced via internal subcontracting, thus limiting competition by object and effect in violation of Section 3.1.b. of the laws.

Once the investigation has been completed and the hearing concluded, all oral and written submissions and observations by the parties will be examined. The commission will then publish its final decision, which will be made available to the public on the commission's website and in the Official Gazette, while ensuring data confidentiality.

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