12/06/2015 13:22
Daimler AG and Cyprus Import Corporation Ltd (CIC) were fined by the Commission for the Protection of Competition on April 23 with €20 million and €700 thousand respectively for violating the competition legislation.
The fines were imposed with regard to the implementation of a selective distribution system of Mercedes-Benz original spare parts in the Cypriot market, the watchdog says in a press release, adding that the decision on the violations committed by the two companies was unanimous.
The Committee received a complaint on April 2011 by the companies Chr. Kapodistrias & Sons Ltd and Kyros Auto Services Ltd. The complainants who import, sell, distribute and resell Mercedes- Benz original parts claimed that after the distribution system was implemented by Daimler they were no longer able to purchase and import the said parts in Cyprus.
It further collected data and information from the companies which submitted the complaint and the companies against whom the complaint was made as well as many other actors in the market place, including producers and sellers of parts.
Upon reviewing all the evidence before it, the Committee decided that the Cypriot market has all the characteristics of a distinct geographic market, since it already constitutes an isolated island market in which competition has been completely stopped between the General Distributor CLC and independent companies (Kapodistrias, Kyros and other companies) and this has led to limiting to the greatest possible degree consumers` choice and their access to better prices, due to the selective distribution system implementation.
In the meantime, Kyros Auto Service Ltd and Kapodistrias & Sons Ltd have issued an announcement through the law firm representing them expressing their satisfaction. They also note that the decision is “extremely important and has implications concerning the EU market as a whole.”
The fines were imposed with regard to the implementation of a selective distribution system of Mercedes-Benz original spare parts in the Cypriot market, the watchdog says in a press release, adding that the decision on the violations committed by the two companies was unanimous.
The Committee received a complaint on April 2011 by the companies Chr. Kapodistrias & Sons Ltd and Kyros Auto Services Ltd. The complainants who import, sell, distribute and resell Mercedes- Benz original parts claimed that after the distribution system was implemented by Daimler they were no longer able to purchase and import the said parts in Cyprus.
It further collected data and information from the companies which submitted the complaint and the companies against whom the complaint was made as well as many other actors in the market place, including producers and sellers of parts.
Upon reviewing all the evidence before it, the Committee decided that the Cypriot market has all the characteristics of a distinct geographic market, since it already constitutes an isolated island market in which competition has been completely stopped between the General Distributor CLC and independent companies (Kapodistrias, Kyros and other companies) and this has led to limiting to the greatest possible degree consumers` choice and their access to better prices, due to the selective distribution system implementation.
In the meantime, Kyros Auto Service Ltd and Kapodistrias & Sons Ltd have issued an announcement through the law firm representing them expressing their satisfaction. They also note that the decision is “extremely important and has implications concerning the EU market as a whole.”
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