Procedural fines will also increase. Fines for providing false information or refusing to cooperate with the antitrust authority have been raised to 1% of turnover.
The European principle of liability for parent companies or holding structures is being introduced: they may also be held liable for violations. The streamlining of investigations will affect court proceedings, which will not automatically suspend the enforcement of imposed penalties. Appeals against Competition Council decisions filed with the Chisinau Court of Appeals will be able to suspend them only if the erroneous nature of the antitrust authority’s sanction decisions is proven.
The changes will also affect such a controversial provision as the refusal to define market boundaries during an investigation. The Competition Council will no longer be required to define the boundaries of the product market in detail in cases of clear and gross violations (for example, when investigating hard-core cartel agreements). The investigative powers of the Council’s inspectors are expanded when conducting surprise inspections (dawn raids) at companies’ offices.
The investigation of market concentrations (mergers and acquisitions) is being brought into line with EU standards. The modernization of M&A control will primarily involve updating the concepts used by the Council when deciding whether to approve a transaction. Outdated terms (such as “dependent enterprises”) are being removed from the law.
Business is getting used to the changes
Alina Cebotariov, Chair of the Competition Council, emphasized the need to maintain an active dialogue with the business community as national legislation is brought into line with European Union standards.
“Amending the Competition Law represents an important step in the process of harmonization with the European Union’s acquis communautaire. Involving the business community and experts contributes to the development of a clear, consistent, and enforceable regulatory framework that ensures a functional and predictable competitive market,” Alina Cebotariov stated at a meeting with business representatives during the discussion of the amendments.
The agency asserts that during the public discussion of the draft law, “the discussion took place in an interactive and constructive format, providing participants with the opportunity to ask questions, request clarifications, and share practical experience in applying competition rules.”
Sergiu Harea, president of the Chamber of Commerce and Industry, praised the cooperation with the Competition Council aimed at informing and supporting the business community. According to the president, a series of informational sessions with business representatives will help clarify the new rules of competitive conduct in the national market.
