Preliminary Investigation

A preliminary investigation is the first stage in which the Competition Board assesses a suspected infringement of Law No. 4054. The Board may open a preliminary investigation following a complaint or tip-off, or on its own initiative using information gathered while monitoring markets. Its purpose is to determine whether there is serious suspicion of an infringement warranting a full formal investigation.

What Happens in a Preliminary Investigation?

• Authority case handlers request information and documents from undertakings, suppliers and customers in the market.
• Unannounced dawn raids may be carried out if necessary; in practice dawn raids often take place at this stage.
• The undertaking concerned is not always notified that a preliminary investigation has been opened.

The report prepared at the end is submitted to the Board, which decides whether to open an investigation.

Outcomes

• No investigation: If suspicion is not serious, the file is closed; the Board may issue an opinion to the undertaking if necessary.
• Investigation opened: If there is serious suspicion, an investigation is opened.
• Commitments: Undertakings may offer commitments at the preliminary investigation stage; if accepted, no investigation is opened. This route is not available for clear and serious infringements.

Information Requests

Information requests at this stage must be handled carefully. Responses to the Authority may shape the course of the file; providing incorrect or misleading information or none at all leads to turnover-based administrative fines. Confidentiality should be requested for information that is a trade secret.

For Complainants

Complaints against competitors’ infringements are effective when supported by concrete evidence and an explanation of market structure. Complainants may request confidentiality of their identity and challenge the Board’s decision not to open an investigation before the administrative courts.