CYPRUS Law and Practice Contributed by: Marios Pelides, Dominique Pelides and Konstantinos Efthymiadis, Georgiades & Pelides
• potential competition posed by other enterprises; • the market share of the participants and their con - nected parties; • alternative sources of supply for the relevant prod - ucts and/or services; • supply and demand trends; • barriers to entry; • the interests of final and intermediate consumers; and • the contribution to technical and economic pro - gress. Additional concerns are examined with respect to joint ventures in 4.7 Special Consideration for Joint Ventures . 4.5 Economic Efficiencies As noted in 4.4 Competition Concerns , the CPC will take into account certain types of economic efficien - cies, in so far as they relate to the interests of con - sumers or contribute to technical and/or economic progress. 4.6 Non-Competition Issues The CPC does not generally tend to take any non- competition considerations into account when reach - ing a decision, and the CPC is not expressly empow - ered to do so by the Law. However, as noted in 1.3 Enforcement Authorities , the Minister may declare that a concentration is “of major importance” (and therefore notifiable to the CPC) despite the fact that the transaction may not meet the jurisdictional thresholds described in 2.5 Jurisdictional Thresholds . The Minister may do so where they consider that a concentration should be regarded as being of major importance on the basis of its expected impact on public safety, on pluralism of the media and/or on the principles of sound administration. There are rules restricting foreign direct investment into Cyprus, pursuant to the Establishment of a Frame - work for the Screening of Foreign Direct Investments Law of 2025 (Law No 194 (I)/2025) – see 9. Foreign Direct Investment/Subsidies Review . There are also specific rules governing investment into (i) certain spe - cific sectors (eg, banks, insurance companies); and/ or (ii) by specific methods (eg, public offers – see 1.2 Legislation Relating to Particular Sectors ). These
rules operate entirely independently of the merger control rules, and consequently, all applicable rules should be considered when assessing the steps to implement a transaction. 4.7 Special Consideration for Joint Ventures Where a concentration involves the creation of a joint venture, the CPC will also examine whether the joint venture will result in co-ordination between the joint venture parents (or whether such co-ordination is in fact the objective of the creation of the joint venture). If such co-ordination exists or will exist, the CPC will consider whether the co-ordination is compatible with, or will interfere with, the ordinary functioning of competition in the market. The CPC will in particular consider whether the joint venture parents will continue to undertake significant activities in the same or adjacent markets as the joint venture enterprise, and whether any co-ordination resulting from the creation of the joint venture will provide the parents with the ability to eliminate com - petition for a large part of the relevant products or services. 5. Decision: Prohibitions and Remedies 5.1 Authorities’ Ability to Prohibit or Interfere With Transactions As noted in 2.12 Requirement for Clearance Before Implementation and 2.13 Penalties for the Imple- mentation of a Transaction Before Clearance , notifi - able transactions may not be implemented prior to CPC clearance (or in circumstances where the CPC issues a decision denying clearance). If a transac - tion is implemented without CPC clearance, the CPC may issue fines and/or order that the transaction be unwound. 5.2 Parties’ Ability to Negotiate Remedies Where the CPC decides to proceed to a Phase II investigation, it will inform the parties that they are entitled to modify the transaction or suggest remedies to resolve identified competition concerns. As part of the Phase II investigation, the CPC will examine whether any additional information it has obtained from the participants (or from third parties), combined
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