Antitrust

Overview

Competition is the basic principle of market economy. It encourages price and cost reductions, innovation and improvement in quality. In Malta the task of protecting competition is the responsibility of the Office of Fair Competition (OFC) The OFC is entrusted to ensure that competition in the Maltese market is not distorted and that markets operate as efficiently as possible, thereby contributing to the welfare of the consumers and to the competitiveness of the Maltese economy.

The antitrust area covers two prohibition rules set out in the Competition Act (Cap.379)
Article 5 prohibits agreements between undertakings, any decision by an association of undertakings and any concerted practice between undertakings having the object or effect of preventing, restricting or distorting competition within Malta. This prohibition is subject to some limited exceptions.

The provision covers a wide variety of behaviour. Article 5 provides a non-exhaustive list of agreements, decisions or practices which are prohibited under the Competition Act and which are consequently ipso jure null and unenforceable.

Thus, agreements, decisions or practices which:

• directly or indirectly fix the purchase or selling price or other trading conditions;
• limit or control production, markets, technical development or investment;
• share markets or sources of supply;
• impose the application of dissimilar conditions to equivalent transactions with other parties outside such agreement, thereby placing them at a competitive disadvantage;
• make the conclusion of contracts subject to the acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts,

are prohibited under the Competition Act.

Article 9 prohibits the abuse by one or more undertakings of a dominant position within Malta or any part of Malta.

One or more undertakings shall be deemed to abuse of a dominant position, where it or they:

• directly or indirectly impose an excessive or unfair purchase or selling price or other unfair trading conditions;
• charge prices which are below the average variable cost price of a product in order to drive rival competitors out of the market;
• limit production, markets or technical development to the prejudice of consumers;
• refuse to supply goods or service indiscriminately in order to eliminate a trading party from the relevant market to the prejudice of consumers;
• apply dissimilar conditions, including price discrimination to equivalent transaction with different trading parties, thereby placing any or some of the trading parties at a competitive disadvantage;
• make the conclusion of contracts subject to the acceptance by the other party of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

With the introduction of Regulation (EC) No 1/2003 in May 2004, the OFC, as well as other EU national competition authorities, has been granted far-reaching competencies for the application of Article 81 EC and Article 82 EC in the prosecution of cartels and abuse control. The OFC applies these European rules in addition to the provisions of the Competition Act if the anticompetitive practices are likely to affect trade between the Member States. The rules in the Competition Act and the EC Treaty are fundamentally similar.

Office of Fair Competition - Contact Details

Director - Office of Fair Competition
Dr Mireille Vella
mireille.vella@gov.mt

Director – Competition
Dr Antoine Grima
antoine.grima@gov.mt

Secretary
Ms Stephanie Tanti
stephanie.tanti@gov.mt

General Contact Numbers

Tel:	+356 21 446250
	+356 21 441193
Fax:	+356 21 441193