The Greek Competition Authority (E.A.) has the authority to conduct regulatory interventions in economic sectors where effective competition is lacking, as per Articles 11 and 14 of Law 3959/2011. Following a thorough investigation and public consultation, the E.A. identified significant issues in the construction sector, particularly in public works, prompting the need for regulatory measures.

On January 8, 2021, the E.A. decided to commence a regulatory intervention in the construction sector, focusing on the sub-sector of public works companies. This decision was influenced by observed market concentration and the entry of investment schemes acquiring minority stakes in major construction firms, raising concerns about the competitive structure of the industry.

The E.A. published its initial findings on April 7, 2021, highlighting the lack of effective competition in the construction sector. These findings were subject to public consultation from April 8 to May 14, 2021, allowing market stakeholders to provide feedback.

After conducting extensive research, including on-site inspections, the E.A. released its second set of findings on August 10, 2022, which were also opened for public consultation until October 14, 2022. Following the submission of a report by the Rapporteur on December 16, 2022, the E.A. reached a decision on January 11, 2023.

The E.A. unanimously decided not to initiate advisory proceedings under Article 23 at this time, as recent legislative changes have not yet been fully reflected in public procurement processes. However, by majority vote, the E.A. imposed several obligations on the companies ELLAKTOR and GEK TERNA.

These obligations include notifying the E.A. of any acquisition of more than 5% in a competing firm if the companies involved hold a combined market share exceeding 50% in the relevant oligopolistic market. Failure to comply may result in penalties as outlined in Law 3959/2011.

Additionally, the E.A. mandated the implementation of Chinese walls to prevent the leakage of commercially sensitive information between the companies and the development of a Code of Conduct for this purpose. Non-compliance could also lead to penalties.

Furthermore, REGGEBORGH, which controls ELLAKTOR and holds over 1% of GEK TERNA's shares, is required to sign a Shareholders' Agreement approved by the E.A. to manage sensitive information regarding competing firms. REGGEBORGH representatives are also prohibited from participating in decision-making processes of companies where they do not have control, to avoid conflicts of interest.

The full text of the decision is published in the Government Gazette and is available on the E.A.'s website, along with more information about the regulatory intervention in the construction sector.