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Republic of CyprusCommission for the Protection of CompetitionCommission for the Protection of Competition
Republic of CyprusCommission for the Protection of Competition
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Abuse of Dominant Position

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According to section 2 of the Protection of Competition Law 2008, dominant position in relation to an undertaking, means the position of market power that an undertaking holds and makes it capable to obstruct the maintenance of an effective competition in the market of a particular product and enable it to act, in substantial degree, independently from its competitors and customers and finally from the consumers.

Pursuant to section 6 of the Law 13(I)/2008, any abuse by one or more undertakings of a dominant position within the local market or in a substantial part of it shall be prohibited, specifically where the conduct has as an effect or potential affect to:

(a)directly or indirectly impose unfair purchase or selling prices or other unfair trading conditions;

(b)limit production, markets or technical development to the prejudice of consumers;

(c)apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(d)make 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.

Moreover, according to section 6 the abuse by one or more undertakings of the financial relations of dependency between one or more such undertakings and an undertaking which is a customer, supplier, producer, representative, distributor or commercial co-operator thereof, even regarding a particular kind of product or services, and which does not have a corresponding alternative solution, is prohibited.

Such an abuse of the financial relationship of dependency may consist especially of the imposition of arbitrary terms of transaction, discretionary treatment, the discontinuance of commercial relations by the assumption or transfer of the activities developed in a way which substantially influences competition, or the sudden and unjustified discontinuance of long term commercial relations.









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