Significant changes in the way it operates Competition Commission and in the control procedures of business concentrations brings the new institutional framework, with amendments to Law 3959/2011.
The changes instituted under Part B of the new bill being prepared by the Ministry of Development for the new Independent Authority for Consumer Protection and Market Supervision focus on improving and speeding up control procedures, transparency, financial independence and digital empowerment of the Competition Commission and, overall, aim to strengthen the independence and effectiveness of the Authority.
It is noted that the changes come at a time when the Commission completes 30 years since its establishment, and with the changes promoted by the Ministry of Development, as commented to APE-MBE by officials of the ministry, the importance of the Authority for ensuring transparency and healthy competition for the benefit of businesses, consumers and the Greek economy is confirmed.
It is recalled that at a recent event of the Competition Commission, Development Minister Takis Theodorikakos had pointed out: “In our time, not only economic stability, but also a sense of social justice and trust in institutions are more necessary than ever”, adding that modern challenges – from artificial intelligence to the climate crisis – require constant adaptation of the state’s control mechanisms, so that meet the new needs of the economy.
“The Competition Commission is called upon to carry out a very difficult mission: to preserve transparency in the market and to protect competition from distortions, cartels and abusive practices”, said Mr. Theodorikakos, underlining that “as a government and as a Ministry of Development we are doing everything in our power to strengthen it with means, resources and human resources”
The reform of the Competition Commission
In detail, the changes are as follows:
- Prior notification of business concentrations. It will be mandatory to notify any concentration of companies before its implementation in order for the Commission to intervene early and proactively in cases that may affect competition. The notification concerns cases where the total turnover of the participating companies exceeds 150 million euros worldwide and at least two of them have more than 15 million euros turnover (turnover) in the Greek market.
- New rules on merger control deadlines. Arrangements are introduced for the Competition Commission not to trigger merger control deadlines when the notification is incomplete or inaccurate. Businesses will be asked within seven working days to correct or complete their information, while the deadlines start to “run” only from the moment of complete and correct disclosure. At the same time, the deadlines can be extended with the agreement of the companies concerned.
- New end in favor of the Competition Commission. A fee of 1‰ (one per thousand) is established for joint-stock companies that are established or increase their share capital. This fee will be directed in favor of the Competition Commission, with the aim of securing minimum annual revenues, which will be linked to the Gross Domestic Product (GDP). If the income falls short of the minimum limit, the difference will be covered by the state budget.
- Internship for students and practicing lawyers. The employment of students and practicing lawyers in the Competition Commission will be allowed. Students will be able to carry out an internship for up to nine months, while up to five practicing lawyers will be able to be placed in the Authority’s legal services. The terms of selection, duration and remuneration will be determined by decisions of the Commission, thus strengthening the connection of scientific education with practical experience.
It is noted that the new framework replaces the old unpaid employment regime.
In addition, alongside the institutionalization of the new framework, the minister has announced the recruitment of 50 specialized executives to the Competition Commission, who will contribute to identifying and dealing with practices that distort competition. “We want to attract high-level young scientists and give them an incentive to stay in the country,” said Mr. Theodorikakos.
Other changes:
- Tougher penalties for misleading information. The Commission’s ability to impose fines of up to 1% of global turnover on companies that refuse, delay or falsify information during audits is strengthened. At the same time, fines are foreseen for managers and employees, from 15,000 to 30,000 euros per day in case of non-compliance.
- Digital and technological tools at the Commission’s disposal. The possibility of using technological tools and artificial intelligence by the Competition Commission is introduced for the first time. The Authority will be able to use data mining methods, connect to public sector information systems and have direct access to the National Electronic Public Procurement System (ESIDIS), strengthening control and transparency in public procurement.
- Strict penalties for obstructing investigations. Fines for businesses that obstruct or hinder Commission investigations are being increased significantly. A fine of up to 1% of global turnover is foreseen, as well as daily monetary penalties of up to 3% of daily turnover. For natural persons, fines can reach up to 2 million euros, depending on the seriousness of the violation.
Cooperation with the new Authority for Consumer Protection
In the same spirit of institutional strengthening, the Independent Authority for Consumer Protection and Market Supervision will be staffed with 300 new auditors and will have modern digital tools at the standards of the AADE.
However, as Mr. Theodorikakos has pointed out, the new Authority will have a distinct but complementary role with the Competition Commission, with the aim of a coordinated and effective market supervision.
“Healthy competition is not just an economic principle, it is a social value,” the minister emphasized at the recent Competition Commission event, adding that “market forces cannot be uncontrolled. When competition is under-functioning, unfair practices and injustices prevail at the expense of the citizen”.