According to Articles 11 and 14 par. 2 (c) of Law 3959/2011, the Hellenic Competition Commission (HCC) may make an ex officio regulatory intervention in sectors of the economy, where it finds, following a relevant investigation and public consultation, a lack of effective competition under the conditions and according to the procedures set out in the above provision. The HCC examines a specific sector of the Greek economy that falls within the scope of its competence and if a) it finds that there are no conditions of effective competition in that sector and b) it considers that the application of Articles 1, 2 and 5 to 10 of Law 3959/2011 is not sufficient to create conditions of effective competition, it may, by reasoned decision, take any necessary measure to create such conditions in the specific sector of the economy. These conditions must be met cumulatively in accordance with the literal wording and interpretation of the law.

On 08.01.2021, the Hellenic Competition Commission (HCC) decided ex-officio, in Plenary sitting,  to initiate the procedure for a regulatory intervention in the construction sector in accordance with Article 11 of Law 3959/2011. In particular, issues were identified that raise concerns regarding the existence of effective competition conditions in this sector. The regulatory intervention focuses on the sub-market of public works construction companies because of its particular importance to the Greek economy and the competition issues raised in its regard. The initiation of a regulatory investigation into the activity sector of construction companies was also triggered, inter alia, in addition to the significant concentration observed in certain markets of the construction industry due to its significant downsizing, by the situation observed since 2020 concerning the change in the structure of the industry due to the gradual entry of investment vehicles, through the acquisition of non-controlling interests, at the same time, in large construction companies. This practice was mainly identified in the two largest companies in the industry, which showed an increase over time in the percentage of stakes of an investment fund in their share capital. Taking into account that these specific capital holdings do not raise in principal any concern in terms of the preventive merger control by the national competition authority, they were examined in the context of the Regulatory Intervention, as they raise concerns about their possible effects on the competitive market structure. In view of the above, it was deemed appropriate to examine all possible joint holdings in the industry players, which, if any, could raise competition concerns as to the existence of genuine competition among them.

On 7.4.2021, the HCC issued its First Interim Report with respect to the lack of competitive conditions in the construction sector. and launched its first public consultation lasting 30 days and inviting interested parties to comment. The issues identified in the First Interim Report were subject to public consultation (first public consultation) inviting any interested parties to submit their comments to be taken into account for a subsequent re-evaluation by the HCC. The first public consultation lasted from 08.4.2021 until 14.5.2021.

Following the adoption of significant investigative measures (including an on-site inspection), the HCC issued its Second Interim Report on 10.8.2022 and invited all interested parties to contribute to the public consultation (second public consultation) which was held, after an extension of the original deadline, from 10.8.2022 to 14.10.2022.

The HCC reached a Decision on 11.1.2023, following the relevant SO submission by the case Rapporteur on 16.12.2022.

The HCC unanimously decided not to exercise its competence to deliver an opinion under Article 23 at this point in time, given that the specific legislative framework was recently revised and, therefore, the relevant amendments have not yet been fully reflected in the tendering procedures for public works.

The HCC decided by majority as follows:

A) Imposes on the companies ELLAKTOR and GEK TERNA the obligation to announce/notify the Authority, for the purpose of conducting a relevant economic analysis, of any stake acquisition exceeding 5% in the share capital of a competitor by the interested parties in the event that in the oligopolistic construction project sub-market as well as in the project concession sub-market under consideration, the undertakings in which a common shareholder is present hold an aggregate share of more than 50% in that market. The sanctions provided for in Article 11, par. 11 of Law 3959/2011 may be imposed by reasoned Decision in the event of culpable failure of the parties subject to the above obligation to announce/notify the Authority of any such changes.

B) Imposes on the companies ELLAKTOR and GEK TERNA the implementation of Chinese walls that will prevent any disclosure of commercially sensitive information between the companies in the construction project sub-market and the project concession sub- market in which a common shareholder is present holding a share capital of more than 5% (in each company) in the said companies and the drawing up of a Code of Conduct to that end. In case of non-compliance with this specific obligation, the sanctions provided for in Article 11, par. 11 of Law 3959/2011 may be imposed by a reasoned Decision of the Authority for culpable violation of the above notification obligation by the parties subject to it as referred to above.

C) Imposes on REGGEBORGH, for as long as it controls ELLAKTOR de jure or de facto and at the same time holds more than 1% of the value of the shares of GEK TERNA or, respectively, (a) to enter into a Shareholders' Agreement, the content of which will be subject to the HCC’s approval, regarding the treatment of commercially sensitive information on competitors in the specific sector in which it holds a common ownership and (b) to undertake the commitment, under the same common ownership condition and, at the same time, de jure or de facto control over another competitor in the construction project sub-market and the project concession sub-market, that no representatives of REGGEBORGH will participate as members of the management bodies of the company over which they do not have de jure or de facto control (in this case, GEK TERNA), in any meeting, discussion or procedure of these bodies or other corporate bodies in which confidential information/data regarding its commercial policy, will be discussed or communicated directly or indirectly (e.g. in the form of reports, corporate presentations, proposals, etc.), which contain non-public information related to it, and not to take cognisance, in any way, of the relevant information.

The full text of the Decision is published in the Government Gazette (Government Gazette B/1637/4.4.2025), and is also available on the HCC website here. More information on the HCC’s Regulatory Intervention in the Construction Sector is available on the HCC's dedicated webpage here.