Abuse of Dominant Position

The Competition Act also prohibits any direct or indirect abuse by an undertaking in a dominant position of his or her position in the goods market. For the purposes of the Act, an undertaking in a dominant position is an undertaking which accounts for at least 40 per cent of the turnover in the goods market or whose position enables the undertaking to operate in the market to an appreciable extent independently of competitors, suppliers and buyers.

Restrictions are also imposed on the activities of undertakings with special or exclusive rights or in control of essential facilities.

Concentration Control

A very important change introduced by the new Competition Act, is a control mechansim for concentrations, which is aterm that covers any merger of undertakings, or acquisitions, or acquisitions of direct or indirect control over another undertaking. Under the previous Act, the Competition Board had to be notified of such events if the transaction met certain minimum triggering criteria, but the Competition Board had no power to prevent such transactions. The Competition Board can now prohibit a concentration if it creates or strengthens a dominant position that would significantly restrict competition in the productmarket. Generally, a concentration is subject to control under the Competition Act, if all three of the following triggering circumstances exist:

(i) the aggregate worldwide turnover of the parties to the concentration exceeded 500 million kroons in the previous financial year; and

(ii) the aggregate worldwide turnover of at least two parties to the concentration exceeded 100 million kroons in the previous year; and

(iii) the business activities of at least one of the merging undertakings or of the whole or of the part of the undertaking over which control s acquired are carried out in Esonia.

Unfair Competition subject to Private remedies

Under the new competition Act, the courts, rather than the Competition Board, will now deal with cases involving unfair competition.

Penalties

Indiduals who violate the new Competition Act may be found criminally liable, punishable with either a monetary fine or imprisonment for up to 3 years. Legal persons may be fined up to 10% of their financial year’s turnover.

BANKING AND SECURITIES LAW

Banking

The official currency unit of Estonia is the Estonian Kroon (EEK). The Estonian Kroon is fixed to the Euro at a rate of 15.64:1 by law. It was originally pegged to the German mark but an omnibus amendment to Estonian law was made to the take into account adaption of the Euro. The Central Bank does not have the right to devalue the Estonian currency. The Estonian Kroon is freely exchangeable in estonia and in neighbouring countries including Finland, Sweden and Latvia.

(To be continued)

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