11th Oct 2018
Our firm has successfully represented the companies Pittas Dairies Ltd and Pittas Dairy Industries Ltd, dairy producers and distributors, in anti-trust proceedings before the Cyprus Commission for the Protection of Competition (CPC), in relation to anti-competitive practices in the Cypriot dairy market.
Following a complaint lodged by our clients, the companies Pittas Dairies Ltd and Pittas Dairy Industries Ltd, and lengthy administrative proceedings, the CPC issued its Decision No. 32/2018 on 24.07.2018, stipulating that the Pancyprian Organisation of Cattle Farmers (P.O.C.F.) Public Limited committed infringements of section 6(1)(a) of the Cyprus Protection of Competition Law of 2008 (L. 13(I)/2008) as later amended, by abusing its dominant position of control of 80% of the market for wholesale raw cow milk supply in the Republic of Cyprus. The P.O.C.F. Public Limited is a recognised Producers Organisation (PO), incorporated with the intention of collective marketing of raw cow milk by its members and the pooling of an efficient milk collection and distribution network.
Specifically, the Commission ordered P.O.C.F. to avoid any repetition of the infringements found of section 6(1)(a) of the Law in the future, and imposed two administrative fines: (i) EUR 1.038.120, in relation to the direct or indirect imposition of unfair trading conditions by virtue of P.O.C.F.’s arbitrary and unilateral increases in the basic price of the raw cow milk supply, and the arbitrary and unilateral changes in the delivered quantities of raw cow milk for the period from 01.04.2004 up to and including the date of submission of the complaint (09.05.2012), as well as the timing of such deliveries, disrupting supply to our clients, and (ii) EUR 519.060,12 in relation to the direct or indirect imposition of unfair pricing, as a result of the margin squeeze between the price of raw cow milk and the price that P.O.C.F. charged Papouis Dairies Limited, its wholly-owned subsidiary and direct competitor of our clients, in the downstream market for manufacturing and supply of halloumi cheese in year 2012.