CYPRUS Law and Practice Contributed by: Marios Pelides and Dominique Pelides, Georgiades & Pelides
2.13 Penalties for the Implementation of a Transaction Before Clearance If a concentration is put into effect without the prior approval of the CPC, the CPC may impose a fine of up to 10% of the total turnover of the relevant party for the preceding year. Additional fines (up to EUR8,000 per day) may be imposed for each day the breach continues. The CPC also has the power to order that a concentration put into effect without its approval be (wholly or part - ly) reversed or disbanded, but only to the extent that this is reasonably necessary to restore func - tional competition on the relevant market. Very few instances of penalties being imposed in this regard have been reported. The under - takings involved in those instances (which were published on the CPC’s website) received fines ranging from EUR5,000 to EUR10,000. It is worth noting in this regard that the Law (and consequently, the penalties described above) applies equally to foreign-to-foreign transac - tions. 2.14 Exceptions to Suspensive Effect There are no general exceptions to the suspen - sive effect unless specific clearance is obtained from the CPC to implement (parts of) a transac - tion pending CPC clearance (see 2.15 Circum- stances Where Implementation Before Clear- ance Is Permitted ). 2.15 Circumstances Where Implementation Before Clearance Is Permitted Transactions subject to a Phase I investigation, or at least those parts that relate to Cyprus and have triggered the requirement to file, may not be implemented until CPC clearance (includ - ing deemed clearance) is obtained. Parties may implement the parts of the transaction that are
• enter any premises (apart from private resi - dences, unless it obtains a court warrant); • check any books or other records and take copies of them; • seal any premises or documents pending its investigation; and • ask questions and request clarifications and/ or information from any relevant person. The CPC does not need to provide advance warning of an exercise of its powers, although it does need to provide details of the objective and scope of the exercise, its start date and the basis upon which it is exercising its powers. There is no statute of limitations applicable to the exercise of the CPC’s powers. Accordingly, the CPC could decide to investigate a transac - tion several years after its implementation. Additionally, as noted in 1.3 Enforcement Authorities , the Minister may also declare a con - centration as being of major importance even if it does not meet the applicable thresholds, in which case the provisions of the Law will apply to that concentration. This power has very rarely been used. 2.12 Requirement for Clearance Before Implementation Transactions (or at least the parts of a transaction that relate to Cyprus and have triggered the obli - gation to file a notification with the Service) may not be implemented until CPC clearance (includ - ing deemed clearance) has been obtained. For notifications that proceed to a Phase II inves - tigation, parties can apply for permission from the CPC to implement the transaction pend - ing clearance. See 2.15 Circumstances Where Implementation Before Clearance Is Permitted for further details.
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