Cyprus court overturns fines over fuel pricing

The Supreme Court of Cyprus has overturned a fine on local fuel companies for uncompetitive pricing after ruling the composition of the regulatory watchdog that had imposed the penalty was invalid.
The Competition Commission of Cyprus had in September 2009 ordered four companies – Exxon Mobil Cyprus, Hellenic Petroleum subsidiary EKO, Petrolina Holdings Public and Lukoil Cyprus to pay a total of 42.9 mln euros ($60 mln) in fines for what it described as uncompetitive pricing policies.
In imposing the fine, a record high for Cyprus, the Commission had said the firms had dampened competition by separately making price recommendations to brand petrol station dealers. The companies at the time strongly denied the allegations and promised to appeal.
Wednesday's Supreme Court decision did not go into the merits of the commission's findings on the pricing policies of the companies, cutting short the process at the preliminary points raised by the appellants.
The court found that the island's council of ministers, which appointed the commission's chairman, had failed to spell out in its appointment that he had the requisite specialised legal knowledge for the post, the court said in its ruling.
"Since the appointment was in violation of the law, consequently the said (regulator's) decision is also in violation of the law," the Supreme Court said.