Competition Commission: Ex-officio research on the market of retail electricity supply to low voltage customers

The Competition Commission, following its actions in key sectors of the economy, and in the context of the effective expost application of the competition rules in the electricity sector, launched on 16.12.2021 an ex-officio investigation into the market of retail electricity supply to low voltage customers . Following a preparatory investigation and monitoring of the specific market, EA proceeded with research measures in eighteen companies operating in the market to identify anti-competitive practices under Law 3959/2011 and the Treaty on the Functioning of the European Union (TFEU).

It is noted that conducting research measures does not prejudge that companies or associations of companies have engaged in anti-competitive behavior nor does it prejudge the outcome of the investigation.

Legal framework

EA, custodian of the proper functioning of the free market, is in charge of the ex post application of the competition rules based on Law 3959/2011 and Articles 101/102 TFEU.

Articles 1 of Law 3959/2011 and 101 TFEU prohibit partnerships between companies (agreements, decisions of associations or concerted practices) that have as object or effect the restriction of competition.

Articles 2 of Law 3959/2011 and 102 TFEU prohibit the abusive behavior of companies with a dominant position in the market.

EA points out that within the framework of its responsibilities, it will intervene as an immediate priority where necessary and will examine any relevant case that comes to its notice, by submitting a complaint, request for leniency or anonymous relevant information through the secure digital environment (whistleblowing). and will impose very severe administrative sanctions on companies that may apply anti-competitive practices under the provisions of Law 3959/2011 and 101/102 TFEU.

Other actions

EA in cooperation with the Energy Regulatory Authority (RAE), which is in charge of exante control of competition in the energy sector, is closely monitoring the price increases that are occurring internationally as a consequence of the current pandemic, as these increases may have an impact. within the Greek territory. It has set up a working group consisting of executives in collaboration with experts from foreign and domestic universities, such as Cambridge University, the University of East Anglia, and the Athens University of Economics and Business to closely monitor the market.

Regarding the diagonal dimension (concerning the heterogeneous activities of the merging companies), regarding the possibility for the parties to create a stronger pole of competition in the frozen dough industry, with greater bargaining power and strengthening of their position, the Competition Commission decided that the possibility of adverse effects on competition arising from possible group or combined sales practices is considered small because the parties already have joint control over the companies HELLENIC DOUGH and MACEDONIAN PUPPIES, there are alternative sources of supply for the companies and They do not have significant power and dominance in the markets concerned by the concentration.

During the meeting of the Plenary Session of the Competition Commission on December 15, 2021, it was unanimously decided to approve the concentration notified from 07.10.2021, pursuant to article 8 par. 3 of Law 3959/2011, given that this concentration, although it falls under scope of par. 1 of article 6 of Law 3959/2011, does not cause serious doubts as to its compatibility with the operating requirements of the competition in the individual markets to which it concerns.