Lawmakers on Tuesday discussed a bill that would criminalise market collusion, with its sponsor calling the legislation necessary as the government had failed in its duties.
The legislative proposal was introduced by Disy MP Kyriakos Hadjiyiannis.
In remarks to the press, the MP derided the market watchdog – the Commission for the Protection of Competition or CPC – as “purely ornamental” and ineffectual.
Criminalising market collusion or cartel-like behaviour is therefore the only way forward, he added.
“Given the absence of real competition, the situation in the country is particularly worrying,” said Hadjiyiannis.
“Unfortunately in the absence of a policy on competition, and where the regulator is ineffectual, we get a situation here in Cyprus with cartels, with collusion…”
These practices, he argued, result in price gouging and the exploitation of consumers while also hurting entrepreneurship.
As examples he cited the high electricity prices, high public transit fares, the banks and the insurance business.
The bill will be vetted by the attorney-general’s office with the goal of tweaking it.
Under the proposed legislation, anyone can file a complaint to the police regarding suspected violations of competition. The CPC may also separately conduct an investigation.
The criminal penalties will be fleshed out in the text of the bill later.
The House commerce committee also discussed another bill, introduced by Greens MP Stavros Papadouris.
The bill concerns unfair terms in consumer contracts.
Papadouris said the bill is based on EU Directive 93/13 (Unfair Terms Directive).
“Whenever we state that we are fully harmonised [with EU law], we are either turning a blind eye or misinforming certain European bodies. That is why we have drafted this bill,” said the MP.
According to Papadouris, it’s inconceivable that there still exist active contracts that contain unfair terms but which slip under the radar because of the date on which they were entered into.
He spoke of decisions issued by the financial ombudswoman and relating to unfair terms of contract, but which creditors (banks) do not accept, forcing complainants to resort to the courts.
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