A €1.5 million fine imposed on the Pancyprian Cattle-Farmers Association (Poa) has been overturned following a court decision ruling the former competition commissioner’s appointment was in fact unlawful, it emerged on Tuesday.

One day after the court decision, Poa director Nikos Papakyriacou told the Cyprus Mail the dispute began over 10 years ago, connected to the now defunct Pittas Dairies.

The case concerns Loukia Christodoulou, who was appointed during former President Nicos Anastasiades’ term as a member of the competition commission in 2008. In 2011, cabinet decided she should step in to the vacant seat as the commission’s chairwoman.

In 2013 and 2018 the appointment was renewed. She served in the seat until April 15 this year, when President Nikos Christodoulides appointed her to the public service commission due to the furore surrounding the initial appointee who was found to have shoddy degrees.

But the law specifies a person can serve two terms on the competition committee, meaning a total of 10 years.

Papakyriakou said Pittas Dairies filed a complaint to the competition body over Poa in 2012, citing competition disputes. As a result, Poa was required to send tonnes of milk to Pittas Dairies. Consequently, Poa had to inform other firms it was unable to meet their demand, according to the court details.

Following a number of complaints by other companies regarding Poa’s newfound inability to meet demand, in 2018 it was fined €1.5m.

It was this last decision that Poa took to court, questioning whether Christodoulou was legally in her position.

By 2018, she had already reached her maximum 10-year limit.

The court ruled Christodoulou’s appointment was indeed unlawful, thus nullifying Poa’s €1.5m fine.

“This ruling shows that appointees should be made on merit rather than political criteria,” Papakyriakou stressed.

“It should be people who have made a name for themselves rather than people who end up being a burden.”