Romania competition update
Romania’s Competition Authority has increasingly engaged in extra-jurisdictional investigations, conducting actual cross-border raids in offices outside of Romania with the support of local competition authorities and police.
Foreign-based companies have been subject to investigations and fines, though investigation methods were historically milder for such entities. Previously, foreign companies received information requests while national companies faced thorough inspections.
Starting in early 2017, Romania’s Competition Authority expanded beyond its borders: with support from national competition authorities and local police, they raided companies from Italy, the UK and Belgium in ongoing investigations concerning insurance and pharmaceuticals markets.
JURISDICTION?
The Competition Authority only needs to suspect an infringement of Romanian competition rules. EU legislation (Regulation 1/2003) provides the legal basis for cross-border cooperation between competition authorities, including raids at foreign offices or private residences suspected of holding relevant evidence.
While Romania’s Competition Authority decides on inspections, the procedural law governing evidence collection follows the host state’s rules. Targeted entities receive safeguards under their own national laws. Under Regulation 1/2003’s “free movement of evidence” system, raided companies should receive the same safeguards and due process standards as Romanian companies.
The raid itself must be carried out by the national competition authority with enforcement support, though Romania’s inspectors may assist. Inspections follow the host Member State’s national law. Documents and emails may be seized regardless of language; relevant excerpts can later be translated into Romanian for investigation files.
Due to significant convergence in European competition authorities’ powers, raids typically unfold similarly across the EU, though minor variations exist.
THOUGHTS
Cross-border interactions are expected to increase further. The ECN+ Directive aims to empower national competition authorities and facilitate cross-border investigations, including mutual assistance in dawn raids.
This “free movement of evidence” system faces criticism for potentially creating conflicts between national procedural laws, which may affect raided companies’ fundamental rights.
Information exchanges follow Regulation 1/2003’s rules, with investigated parties receiving specific procedural rights. Romania’s Competition Authority investigations typically last approximately three years, requiring multiple information responses and potentially additional raids for suspected new breaches or extended investigations.