CYPRUS Law and Practice Contributed by: Marios Pelides, Dominique Pelides and Konstantinos Efthymiadis, Georgiades & Pelides
employees who are necessary for the continuation of each function; • a description of the customers of the business and apportionment of the turnover of the business to each customer; • financials of the business, including turnover and EBITDA for the preceding two years, as well as projections for the next two years; • a description of every change in its organisational structure and the relationships with its group enti - ties during the preceding two years and a summary of upcoming changes planned during the next two years; and • an analysis of the rationale of the sale, to an appro - priate purchaser, within the suggested timeframe. 5.4 Negotiating Remedies With Authorities Parties may propose remedies once invited to do so by the CPC (in practice when the CPC decides to proceed to a Phase II investigation). The CPC will enter into negotiations of remedies with the parties if it considers that the remedies proposed by the par - ties are insufficient to allay the competition concerns identified by the CPC. The CPC can also suggest its own remedies during the negotiation phase and may impose any conditions it considers appropriate, in its clearance decisions. 5.5 Conditions and Timing for Divestitures Where the CPC decides to approve a concentration subject to conditions and/or remedies, it will include details of such conditions and/or remedies in its approval decision. If a transaction is implemented without full compliance with any remedies or conditions set out in the CPC’s approval, the CPC may impose a fine of up to 10% of the total turnover of the relevant party for the preced - ing year. Additional fines (up to EUR8,000 per day) may be imposed for each day the breach continues. The CPC may also withdraw its approval or modify the terms upon which the approval was issued. Lastly, the CPC also has the power to order that a concentration put into effect without full compliance with applicable remedies or conditions be (wholly or partly) reversed or disbanded, but only to the extent
that this is reasonably necessary to restore functional competition in the relevant market. 5.6 Issuance of Decisions The CPC will typically issue a formal decision permit - ting or prohibiting a transaction within the applicable deadlines. If the CPC fails to issue a decision within the stated deadline, clearance is deemed given. Non-confidential versions of decisions are published in the Official Gazette of Cyprus, as well as on the CPC’s website. 5.7 Prohibitions and Remedies for Foreign-to- Foreign Transactions Recent remedies imposed by the CPC are outlined in 5.2 Parties’ Ability to Negotiate Remedies , although none of the cases concern foreign-to-foreign transac - tions. 6. Ancillary Restraints and Related Transactions 6.1 Clearance Decisions and Separate Notifications No specific legislative provision is made for related arrangements (ancillary restraints) to be captured in clearance decisions and, in practice, they are not commonly captured. 7. Third-Party Rights, Confidentiality and Cross-Border Co-Operation 7.1 Third-Party Rights Where the CPC decides to proceed with a Phase II investigation, a person who is not a party to the con - centration but may nevertheless be directly affected by the CPC’s decision in relation to the concentration may petition the CPC to submit their views in relation to the concentration. This may be done in writing or as part of an oral hearing. Relevant third parties might include: • competitors of the undertakings participating in the concentration; • customers of such undertakings;
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