Greek competition law – antitrust

Greek competition law is laid down in Law 3959/2011 (“on the protection of free competition”). The law has been harmonised with the requirements of the EC Treaty. The law mainly relates to cartels (combination of competitors), abuse of dominant positions and mergers of undertakings.

Prohibition of anti‑competitive agreements

Pursuant to Article 1 of Law No. 3959/2011, “all agreements and concerted practices of undertakings and decisions of associations of undertakings which have as their object or effect the prevention, restriction or distortion of competition …” are prohibited. These agreements include in particular:

the direct and indirect fixing of purchase or selling prices and other trading conditions;
the restriction or control of production, distribution, technical development or investments;
the allocation of purchases or sources of supply;
the application of unequal conditions to equivalent transactions, in particular through unjustified refusals to sell, purchase or engage in other transactions;
making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

The agreements listed above may nevertheless be lawful in whole or in part if they:

contribute to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit;
do not impose restrictions which are not indispensable to the attainment of these objectives;
do not afford the possibility of eliminating competition in respect of a substantial part of the products in question.

Abuse of a dominant position

Abuse of a dominant position by an undertaking is likewise prohibited by Law 3959/2011. The following cases, in particular, may be construed as abusive exploitation:

the direct or indirect imposition of purchase or selling prices and other unfair trading conditions;
limiting production, markets or technical development to the prejudice of consumers;
applying dissimilar conditions to equivalent transactions, in particular where there are unjustified refusals to sell, purchase or engage in other transactions, thereby placing other undertakings at a competitive disadvantage;
making the conclusion of contracts subject to acceptance of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of the contracts, or the conclusion of ancillary agreements.

Mergers (concentrations)

Although the meaning of “cartel” and “merger of undertakings” often overlap in individual cases, the two concepts are clearly separated in law. A merger is not unlawful if it fulfils the statutory requirements. Under Law No. 3959/2011, a merger arises where:

at least two or more previously independent undertakings merge in any manner;
one or more persons already controlling at least one undertaking acquire control over the whole or parts of one or more other undertakings.

Every merger must be notified to the Competition Commission within 30 days from the time the concentration is effected, if the aggregate worldwide turnover of all the undertakings concerned exceeds €150,000,000 and if at least two of the merging undertakings each achieve turnover exceeding €15,000,000 in Greece. The 30‑day period begins upon conclusion of the agreement, the publication of the offer or the commencement of negotiations, or at the time of acquisition of shares.

The following definitions must be observed when making the notification:

“Market share” means the sum of all shares of the undertakings involved in the concentration that are present in the free market—or the relevant market segment.
“Aggregate turnover” means the total annual income booked from the sale of products or services of the undertakings involved in the concentration. Aggregate turnover may refer both to the worldwide market and to the national market. Revenues are calculated net of all discounts on sales as well as VAT and any other taxes deducted from the amount.

Notification for approval applies to those concentrations that may pose competition risks. The law therefore provides for prior submission of the planned concentration to the competition authority, as well as relatively higher fines in case of infringements. The minimum fine for failure to notify is €30,000, while the fine may amount to up to 10% of the aggregate turnover of the undertakings participating in the merger.

The Competition Commission is responsible for examining potential concentrations. If the merger contravenes statutory requirements, it will not be approved and heavy fines are usually imposed on the undertakings concerned. If there is no serious doubt that the merger could harm competition in any way, the Commission approves the merger.

(Status: January 2013. All information provided without guarantee.)