With the change in the law, the powers of the Finnish Competition and Consumer Agency will be expanded and the sanctions imposed on trade associations will be tougher.
The possibilities of the Finnish Competition and Consumer Agency (KKV) to intervene in violations of the competition law are expanding and the imposed sanctions are getting tougher with the new amendments to the Competition Act. The President of the Republic confirmed the legislative changes to the Competition Act in the President's presentation on June 18.6.2021, 24.6.2021. The changes will enter into force on a quick schedule, i.e. already on June XNUMX, XNUMX. The provisions on prohibited restrictions of competition (such as cartel, abuse of a dominant market position) will not change.
The changes are mainly based on the so-called ECN+ directive (EU 2019/01), which requires EU member states to strengthen the enforcement of competition law and to intervene in competition violations.
The basis for calculating penalty fees imposed on industry associations will change
One of the most essential changes is related to the calculation basis of the penalty payment of business associations, such as industry associations, in a situation where the association's violation of competition law is related to the activities of its members.
In accordance with the ECN+ directive, when calculating the sanction imposed on a consortium of traders for a competition violation, in addition to the consortium's own turnover, the combined turnover of the consortium members who operate in the market affected by the infringement will be taken into account in the future. The maximum penalty fee is 10 percent of the turnover calculated as described above. The Market Court orders a penalty fee to be paid to the state at the request of KKV.
In addition, the members of the consortium may, under certain conditions, be obliged to pay the penalty fee imposed on the consortium, if the consortium is unable to pay it itself.
The Competition Act will also be amended to specify the calculation of penalty payments imposed for competition violations. The purpose of the changes is to increase the predictability and consistency of penalty payments presented by KKV. The change may increase the penalty payments, especially for the most serious and long-lasting violations. However, the courts retain wide discretion in assessing the amount of the penalty payment.
New powers for KKV
In the future, in addition to the actual restrictions on competition, companies can also be fined for certain procedural violations, for example in connection with company inspections and other investigation procedures by the Swedish Public Safety Authority.
A significant reform following the directive is that KKV has also gained the authority to present the imposition of structural corrective measures to market law. A trader or an association of traders who violates the prohibited antitrust provisions may be ordered to implement structural remedies that are proportionate to the violation committed and necessary for its effective cessation. A structural remedy can be, for example, breaking up the company or selling a part of the business to a third party.
The amendments made to the Competition Act based on the ECN+ directive also apply to, among other things, hearings, requests for information and inspection powers carried out by KKV.
You can familiarize yourself with the legislative amendment to the Competition Act On the Government website.
Juha Terho agent