According to the Competition Act and EU competition rules, the activities of companies must not restrict competition. Your company may not take part in a cartel or abuse any possible dominant market position. If your company is involved in a company acquisition, check whether the transaction needs to be notified to the Finnish Competition and Consumer Authority.
Commercial competition is governed by the Competition Act and EU competition rules. Competition legislation is designed to safeguard healthy and well-functioning competition. The regulations prohibit companies from acting in ways that may restrict competition. In Finland, competition law compliance is monitored by the Finnish Competition and Consumer Authority.
Competition legislation prohibits agreements and policies between competing companies that restricts competition between them. Of these, the most serious restrictions on competition are cartels. For example, your company may not agree on prices with competing companies. Agreements or policies between companies regarding different production and distribution chains may also restrict competition.
In addition, misuse of a dominant market position is also prohibited. A company in a dominant position has the opportunity to influence the market price level, or other competitive conditions. The company may not abuse its dominant position vis-à-vis its competitors, customers, or suppliers.
If your company is in breach of competition law, the Market Court may impose a penalty on the proposal of the Finnish Competition and Consumer Authority. Additionally, your company may be subject to payment of damages.
According to the Competition Act, major company acquisitions in excess of a certain level of turnover must be reported to the Finnish Competition and Consumer Authority. If your company is a party to a large company acquisition, check whether the turnover limit under competition law is being exceeded.
The legislation specifies what information must be given in the notification of the company acquisition. These include basic and turnover information relating to the parties, as well as information about ownership and control. The notification must also describe how the transaction is being executed and what markets will be affected. The notification must give detailed reasons why the transaction should be approved. Some documents are required as appendices such as the acquisition contract and extracts from the trade register.
Note that a company acquisition that is subject to notification may not be implemented before the the Finnish Competition and Consumer Authority has given permission. The Authority will issue a decision to approve the transaction or to start further investigations within one month of the receipt of your notification. The Authority will forbid the company acquisition if it significantly prevents competition in the market for example because it would create a dominant position in the market or reinforce an existing dominant position.