Wineries violated competition rules

The Commission for the Protection of Competition (CPC) has ruled that four local wineries,  ETKO, KEO, LOEL and SODAP violated competition rules as regards price fixing on the supply of 187 ml and 75 cl bottles to Cyprus Airways. The four wineries were also found guilty of routinely deciding on the minimum price of their products sold in the market and their offers to retailers.

The CPC is empowered to impose a maximum fine of up to 10% of each company’s annual revenue. Of the four, only KEO is listed on the CSE and if the CPC would decide to impose the maximum fine of 10%, then that could correspond to a find of CYP 600.000. The level of the fine seldom reaches the 10% level and in most cases when affected companies cooperate with the CPC and give a pledge that such practises will not be repeated, they escape with minimum fines.