Competition

The evolution of business life has led many enterprises to seek ways of co-operation and expansion in order to consolidate, survive and flourish in today's highly competitive environment.

In light of the above, an apparent need to control such transactions has emerged, which has eventually resulted to the enactment of competition and antitrust legislation, into the Greek as well as the international business reality. Greek competition law and administrative practice undergo continuously a natural harmonisation with the competition provisions under EC law.

Within such a constantly evolving field of law, our firm can offer valuable experience gained through dealing with a substantial number of cases involving agreements between undertakings of various sizes and nationalities, of the private as well as of the public sector in Greece and abroad.

The services provided by our firm cover all stages of the relevant procedures anticipated by law encompassing restrictive agreements, merger control, State aid and other trade restrictions. The firm's competition group has in many cases worked closely with our litigation group in commercial disputes involving concentration and market dominance implications.

Moreover, we are closely cooperating with other law firms around the world in order to deal efficiently with cases involving international transactions or regulatory control and facilitate multi-national strategic planning. Pre-emptive action through antitrust audits also forms part of such compliance strategy.

EU Law and practice

The law emanating from the European Union ("EU") has gained an increasingly important place in today's business activity within the EU and internationally. It is now common ground that Brussels regulates the common market, has direct powers in competition law and other matters and sanctions decisively infringements of EC law by Member States. It also contributes financially to building infrastructure, assisting businesses and research and in promoting a multitude of other activities, including aid to developing countries and to the accession Member States.

Member States are obliged to both respect EU law in its entirety as well as to ensure that it is applied fully by their authorities and courts. This is not always an easy process and frequently results in disputes or in a poor application of EU law at national level, generating an exposure to sanctions by Brussels. It is, therefore, critical that both businesses and regulators are alert in safeguarding full compliance with EU law provisions, notably in the areas of free movement of goods, persons, services and capital, competition, public procurement, social rights and harmonised technical standards. Clients knowing their rights and obligations under EU law, certainly gain an advantage over competition and render their business practice protected from infringement allegations bearing heavy consequences.

For example, participating in a price-fixing cartel may result in fines of up to 10% of a corporation's turnover and other significant commercial restrictions. In the area of public procurement, tender procedures may be annulled; and illegal State aid granted may be recovered from the beneficiary with interest. To make things worse, national authorities have no discretion over applying or not EU law, as the latter is a superseding legal order by reference to national law.

In particular, the unprecedented enlargement of the EU in 2004 to 25 Member States, has created the need for restructuring several areas of EU law, notably in the field of competition and in the way the EC institutions function.

Knowing your rights and obligations under EU law will also result in more successful national remedies before courts and other contentious bodies. It may also help you in lobbying effectively the European institutions and the Greek Government in the context of their legislative activity.

Our EU law specialist team of lawyers have an in-depth understanding of the mechanics of EU law and the remedies available. Some of our lawyers have spent many years practicing EU law in Brussels, both within the European institutions and with major law firms. Our experience includes the following:

• Regulatory advice;
• representation of major corporate entities, sovereign Governments and professional associations in contentious procedures before the European Commission and the European courts in Luxembourg;
• lobbying the European institutions on behalf of businesses and associations; and
• assisting private parties in obtaining EU funds.

Public Procurement and State aid

Public procurement rules within the EU single market are included in a series of EU Directives, subsequently implemented by each EU Member State into its national legal order. The effect of this EU and national legislation is that contracts for works, supplies and services over a certain value provided by the public sector as well as utilities in water, telecoms, energy and transport offering a fundamental service to the public, must be advertised on an EU-wide basis. During the awarding procedure, public procurement law must be fully respected, in particular as far as discriminatory technical standards and objective and transparent criteria are concerned. The aim of public procurement legislation is to ensure that competition between bidders is fair and transparent and results in comparing tenders following identical terms. Thus, all potential bidders stand equal chances of success and public money is spent on a non-discriminatory fashion that could lead to serious market distortions and favouritism.

Sarantitis Law Firm has a specialist procurement department that has over the last years dealt with several multi-million Euro projects, including major public works of European dimension . We represent a diverse clientele including foreign and local companies participating in public bids related to both civil and military procurement.

Our services range from advising bidders at the stage of drafting their offers to challenging the outcome of tendering procedures. We have represented clients in many cases before the Greek Conseil d'Etat and the European Commission.

The firm has also been asked several times to act on behalf of the Greek Government and its various awarding authorities in assessing the compliance of tenders with Greek and EC public procurement law.

Involvement of State aid

Public procurement is often inter-related with State aid measures, which are prohibited under EU law. Some of our lawyers have advised several private parties and Governments on the application of State aid rules within the EU as well as on the compliance of subsidies with the WTO regime. Our advice ranges from identifying State aid measures incompatible with the EU common market, the application of the so-called "market economy investor principle" which could lift State aid concerns, assessing whether a measure or business project where the State is involved falls in the scope of State aid block exemption regulations or lawful regional development schemes, to assisting Governments and national authorities concerning their notification obligations to the European Commission.

Obviously, State aid may exist in all areas of business activity, whenever State resources are involved or passed-on to private parties. We, therefore, constantly keep an open eye for the existence of illegal State aid in all business sectors where our lawyers provide advice, such as in property, construction, regeneration and public procurement.

Not many businesses understand that in case they receive illegal State aid the EU Member State that provides it may be sanctioned by the European Commission (and the European Courts). This may result in the recovery of the aid illegally granted and the reversal of all economics related to a deal. This has often led recipients to financial distress. Especially in the field of private-public partnerships for major projects, the involvement of the State must be carefully scrutinised in order to avert the danger of illegal State aid.