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Racing To Comply With EU Digital Services Act To Avoid Sanctions

by THEFUTURE.TEAM

July 16, 2024

Cyprus is urgently working to comply with the EU Digital Services Act (DSA) to avoid potential sanctions. The European Commission recently issued a warning to Cyprus for failing to adequately authorise digital service coordinators and empower them to enforce DSA regulations. This act, crucial for regulating digital platforms, mandates member states to ensure appropriate oversight and enforcement mechanisms.

The Warning and Its Implications

The European Commission’s warning highlighted Cyprus’s lag in establishing a competent national authority to oversee the compliance of digital services within its jurisdiction. Without swift action, Cyprus risks facing significant sanctions, which could affect its digital economy and broader market operations.

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Government’s Response and Actions

In response to the EU’s ultimatum, the Cypriot government has initiated a multi-ministerial effort to align with the DSA requirements. The primary focus is on the appointment of the Cyprus Radio-Television Authority as the national coordinator. This body will be responsible for monitoring digital services and ensuring they comply with the EU’s stringent regulations.

Additionally, the government has commissioned a technical-economic study to determine the necessary resources for full compliance. This study is crucial for understanding the financial and operational needs to meet the DSA standards effectively.

Financial and Operational Commitments

The immediate financial commitment required for compliance is estimated at €172,662. This amount covers the establishment of the necessary infrastructure and the operational costs associated with setting up the national coordinating body. Ensuring adequate funding and resources is pivotal to achieving the desired compliance and avoiding EU sanctions.

Broader Implications for Cyprus

Complying with the DSA is not just about avoiding penalties; it is also about positioning Cyprus as a trustworthy and secure digital economy within the EU. Proper implementation will enhance consumer protection, ensure fair competition, and foster innovation within the digital sector. For businesses, this means operating in a more regulated and transparent environment, ultimately benefiting the broader economy.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.