WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  IP/N/1/EST/O/2 
3 March 2004 
 (04-0962) 
Council for Trade-Related Aspects of 
Intellectual Property Rights Original:   English/ 
 anglais/  inglés 
 
MAIN DEDICATED INTELLECTUAL PROPERTY 
LAWS AND REGULATIONS NOTIFIED UNDER 
ARTICLE 63.2 OF THE AGREEMENT 
 
ESTONIA 
   The present document reproduces the text
1 of the Competition Act, as notified by Estonia 
under Article 63.2 of the Agreement (see document IP/N/1/EST/1/Add.1).  
 
Conseil des aspects des droits de propriété 
intellectuelle qui touchent au commerce  
 
 
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES À LA 
PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE 
DE L'ARTICLE 63:2 DE L'ACCORD 
 
ESTONIE 
 
  Le présent document contient le texte
1 de la Loi sur la concurrence, notifiée par l'Estonie au 
titre de l'article 63:2 de l'Accord (voir le document IP/N/1/EST/1/Add.1). 
 
 
Consejo de los Aspectos de los Derechos de Propiedad Intelectual relacionados con el Comercio  
 
 
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA 
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD 
DEL PÁRRAFO 2 DEL ARTÍCULO 63 DEL ACUERDO 
 
ESTONIA 
  
 En el presente documento se reproduce el texto
1 de la Ley sobre la Competencia, notificado 
por Estonia en virtud del párrafo 2 del ar tículo 63 del Acuerdo (véase el documento 
IP/N/1/EST/1/Add.1). 
                                                      
 1 In English only. The text in the original language is available for consultation by interested 
Delegations at the WTO Secretariat./En anglais seulemen t.  Les délégations intéressées peuvent consulter le 
texte dans sa langue d'origine, au Secrétariat de l'OM C./En inglés solamente.  Las delegaciones interesadas 
podrán consultar en la Secretaría de la OMC el texto en su idioma original. IP/N/1/EST/O/2 
Page 2  
 
 Competition Act 
Passed 5 June 2001 
(RT1 I 2001, 56, 332), 
entered into force 1 October 2001. 
 
Chapter 1 
General Provisions 
 § 1. Scope of application of Act (1) The scope of application of this Act is the safeguarding of competition in the interest of free 
enterprise upon the extraction of natural resources, manufacture of goods, provision of services and 
sale and purchase of products and services (hereinaft er goods), and the preclusion and elimination of 
the prevention, limitation or restriction (hereinaft er restriction) of competition in other economic 
activities. (2) This Act also applies if an act or omission di rected at restricting competition is committed outside 
the territory of Estonia but restricts competition within the territory of Estonia. 
(3) This Act does not regulate relationships in the labour market. 
§ 2. Undertaking (1) For the purposes of this Act, an undertaking is  a company, sole proprietor, any other person 
engaged in economic or professional activities, an assoc iation which is not a legal person, or a person 
acting in the interests of an undertaking. (2) The provisions concerning undertakings apply to  persons who perform func tions in public law and 
to the state and local governments if they particip ate in a goods market. The provisions of Chapter 9 
of this Act do not extend to the state, local governments or the Bank of Estonia. (3) For the purposes of this Act, undertakings whic h operate in the same goods  market and belong to 
the same group of companies or other undertakings which are connected through control may be deemed to be one undertaking if there is  no competition between such undertakings. 
(4) Control is the opportunity for one undertaking or  several undertakings jointly or for a natural 
person, by purchasing shares and on the basis of a co ntract, transaction or articles of association or by 
any other means, to exercise direct or indirect influence on another undertaking which may consist of 
a right to: 1) exercise significant influence on the composition,  work or decision-making of the management 
bodies of the other undertaking; 
2) use or dispose of all or a significant proportion of the assets of the other undertaking. 
§ 3. Goods market (1) A goods market is an area covering the whole of the territory of Estonia or a part thereof where 
goods which are regarded as interchangeable or substitu table (hereinafter substitutable) by the buyer 
by reason of price, quality, technical characteristics,  conditions of sale or use, consumption or other 
characteristics are circulated. 
(2) In order to define a goods market, the turnove r of substitutable goods shall, as a rule, be assessed 
in money. If this is not possible or expedient,  the market size and the market shares of the 
undertakings participating in the goods market ma y be assessed on the basi s of other comparable 
indicators. 
 
Chapter 2 
Prohibition on Agreements, Concerted Practices a nd Decisions by Associations of Undertakings 
 § 4. Prohibition on agreements, concerted practices  and decisions by associations of undertakings 
which restrict competition 
(1) The following are prohibited: agreements between undertakings, c oncerted practices, and 
decisions by associations of undertakings (herei nafter agreements, practices and decisions) which 
have as their object or effect the restriction of competition, including those which:  IP/N/1/EST/O/2 
 Page 3 
 
 
 1) directly or indirectly fix prices or any othe r trading conditions, including prices of goods, tariffs, 
fees, mark-ups, discounts, rebates, basic fees, premiu ms, additional fees, interest rates, rent or lease 
payments applicable to third parties; 2) limit production, service, goods markets,  technical development or investment; 
3) share goods markets or sources of supply, includin g restriction of access by a third party to a goods 
market or any attempt to exclude the person from the market; 
4) exchange information which restricts competition; 5) agree on the application of dissimilar conditions  to equivalent agreements, thereby placing other 
trading parties at a competitive disadvantage; 6) make entry into an agreement subject to acc eptance by the other parties of supplementary 
obligations which have no connection w ith the subject of such agreement. 
(2) Clauses (1) 2)–6) of this section do not apply to  agreements and practices of agricultural producers 
or to decisions by associations of agricultural producers, which concern the production or sale of 
agricultural products or the use of joint facilities, unl ess competition is substantially restricted by such 
agreements, practices or decisions. 
§ 5. Agreements, practices or decisions of minor importance 
(1) The provisions of clauses 4 (1) 2)–6) of th is Act do not apply to agreements, practices and 
decisions of minor importance. (2) Agreements, practices or decisions are considered to be of minor importance if the combined market share of the total turnover of the undertaki ngs which enter into the agreement, engage in 
concerted practices or adopt the relevant decision does not exceed: 
1) 10 per cent in the case of a vertical agreement, practice or decision; 
2) 5 per cent in the case of a horizontal agreement, practice or decision; 3) 5 per cent in the case of an agreement, pr actice or decision which includes concurrently the 
characteristics of both vertical and horizont al agreements, practices or decisions. 
(3) Agreements by undertakings, c oncerted practices of undertakings or decisions by associations of 
undertakings are considered to be vertical if th e undertakings operate at different levels of the 
production or distribution chain (for example the production of raw materials or finished goods, or retail or wholesale distribution). Agreements by und ertakings, concerted practices of undertakings or 
decisions by associations of undertakings are consid ered to be horizontal if the undertakings operate 
as competitors at the same level of the production or distribution chain. (4) Agreements, practices or deci sions are deemed to be of minor importance if the conditions 
provided for in subsection (2) of this section are fulfilled during the whole period of effect of the 
agreement, practice or decision. § 6. Exemption (1) An exemption is permission granted at the request  of an undertaking by a decision of the Director 
General of the Competition Board or his or her deputy to enter into an agreement, engage in concerted 
practices or adopt a decision specified in § 4 of this Act. 
(2) The permission specified in subsection (1) of this section may be granted if the agreement, 
practice or decision: 1) contributes to improving the production or dist ribution of goods or to promoting technical or 
economic progress or to protecting the environment,  while allowing consumers a fair share of the 
resulting benefit; 
2) does not impose on the undertakings which enter in to the agreement, engage in concerted practices 
or adopt the decision any restrictions which are not indispensable to the attainment of the objectives specified in clause 1) of this subsection; 3) does not afford the undertakings which enter into  the agreement, engage in concerted practices or 
adopt the decision the possibility of eliminating comp etition in respect of a substantial part of the 
goods market. 
(3) In order to obtain the permission specified in  subsection (1) of this section, all the conditions 
provided for in subsection (2) must be fulfilled. § 7. Block exemption IP/N/1/EST/O/2 
Page 4  
 
 (1) A block exemption is general permission gran ted by a regulation of the Government of the 
Republic on the proposal of the Minister of Finan ce to enter into a certain category of agreements, 
engage in a certain category of concerted practices  or adopt a certain category of decisions which 
complies with the conditions provided for in § 6 of this Act and restricts or may restrict competition. (2) A block exemption is established for a specified term and may designate: 
1) the name of the category of agreements, prac tices or decisions to which the block exemption 
applies; 2) restrictions or conditions which shall not be included in such agreements, practices or decisions; 
3) conditions which must be included in such agreem ents, practices or decisions, and restrictions and 
conditions which may be included in su ch agreements, practices or decisions; 
4) other conditions which such agreements, practices or decisions must comply with. 
(3) A block exemption established on the basis of subsection (1) of this section does not apply: 
1) to an undertaking in a dominant position; 2) if competition is virtually non-existent in the goods market affected by the agreement, practices or 
decision. 
§ 8. Invalidity of agreements or decisions 
Any agreement or decision or a part thereof wh ich has as its object or effect the consequences 
specified in § 4 of this Act and with regard to wh ich permission has not been granted on the basis of § 
6 or 7 of this Act is void unless it complies with § 5 of this Act.  
Chapter 3 
Procedure for Grant of Exemptions 
 § 9. Submission of applications for exemption (1) In order to obtain an exemption provided for in § 6 of this Act, an application for exemption shall 
be submitted to the Competition Board before entry into the relevant agreement, commencement of 
the concerted practices or adoption of the relevant d ecision. An application for exemption may also be 
submitted within six months after entry into an ag reement or adoption of a decision which requires an 
exemption, and the corresponding agre ement or decision or a part th ereof which restricts competition 
shall be void until the grant of the exemption. (2) An application for exemption with regard to an  agreement, decision or a part thereof or practices 
which was not in conflict with this Act upon entry into the agreement, commencement of the practices 
or adoption of the decision shall be submitted within three months as of the appearance of 
circumstances due to which the agreement or deci sion or a part thereof or the practices becomes 
contrary to this Act or within three months as of  the time such circumst ances should have become 
evident. Such agreement or decision or a part thereof is invalid from the appearance of the 
circumstances until the grant of the exemption. 
(3) An application for exemption shall be submitted jointly by the undertakings which entered into an 
agreement, engaged in concerted practices or adopt ed a decision, or by one of the undertakings. 
(4) Persons specified in subsection (3) of this section may withdraw an application for exemption 
jointly or separately at any time before the grant of the exemption by submitting a corresponding written petition, and the person submitting the peti tion need not be the same as the person who 
submitted the application for exemption. 
§ 10. Requirements for applications for exemption 
(1) The requirements for applications for exemption,  the requirements for applications for extension 
of the term of an exemption, and the procedure fo r submission of applications shall be established by 
a regulation of the Minister of Finance. At the re quest of the Competition Board, an applicant for an 
exemption shall provide explanations and submit for examination original documents or true copies or 
transcripts thereof, certified by the signature of the person submitting the copies or transcripts. 
(2) If information contained in an application fo r an exemption or information relating to the 
application is incorrect, incomplete or misleading,  the Competition Board shall set a deadline for the 
applicant to eliminate the deficiencies. After elim ination of the deficiencies, the Competition Board 
shall send corresponding confirmation to the applicant for the exemption, and the running of the terms  IP/N/1/EST/O/2 
 Page 5 
 
 
 provided for in subsections 11 (2) and (3) of this  Act shall commence as of the date on which the 
confirmation is sent. (3) The person for whose benefit an exemption is granted and the person who applies for a decision 
on the grant of the exemption shall immediately give written notice to the Competition Board of any substantial changes in the information presen ted in the application for the exemption. 
(4) An applicant for exemption or the other part y to the agreement shall indicate any information 
which the applicant or other party deems to be a business secret. § 11. Processing of applications for exemption (1) The Director General of the Competition Boar d or his or her deputy shall make one of the 
following decisions concerning an application for an exemption: 
1) to grant the exemption if he or she finds that the agreement, practice or decision which is the basis 
for the application complies with the cond itions provided for in § 6 of this Act; 
2) to refuse to grant the exemption if he or she fi nds that the agreement, practice or decision which is 
the basis for the application does not comply with  the conditions provided for in § 6 of this Act; 
3) to terminate the proceedings if the application for the exemption has been withdrawn, or if the 
applicant for the exemption has failed to eliminate th e deficiencies in the application within the term 
specified by the Competition Board or to submit th e information requested by the Competition Board; 
4) to terminate the proceedings without granting th e exemption and to declare that the agreement, 
practice or decision does not require an exemption as it does not fall within § 4 of this Act or does not 
require an exemption on the bases specified in § 5 of this Act or requires a group exemption; 
5) to initiate supplementary proceedings concerning the application for the exemption if he or she 
finds that it is doubtful whether the agreement, practice or decision which is the basis for the 
application qualifies for an exemption pursuant to § 6 of this Act and if it is necessary to obtain 
additional information or conduct a supplementary examination in order to make the decision. 
(2) The Director General of the Competition Boar d or his or her deputy shall make one of the 
decisions provided for in clauses (1) 1)–4) of this  section within two months after receiving all the 
information. 
(3) If the Director General of the Competition Bo ard or his or her deputy decides to initiate 
supplementary proceedings on the basis of clause (1 ) 5) of this section, he or she shall notify the 
applicant for the exemption in writing and make one of the decisions provided for in clause (1) 1)–3) 
within six months after receiving all the information. (4) The Competition Board may extend the terms provi ded for in subsections (2) and (3) of this 
section only with the written consent of the applicant for exemption. 
§ 12. Decision to grant exemption (1) Decisions provided for in subsection 11 (1) of th is Act and subsection (5) of this section shall be 
made in writing and contain the reasons for the decision. (2) A decision to grant an exemption may contai n conditions or obligations applicable to the 
undertakings which enter into the agreement, engage  in the concerted practices or adopt the decision. 
(3) The Director General of the Competition Board or his or her deputy may grant an exemption for up to five years, and upon expiry of the specified te rm, the term of the exemption may be extended by 
a decision to grant an exemption. (4) An application for extension of the term of an exemption sh all be submitted according to the 
regulation specified in subsection 10 (1) of this Act at least six months before the expiry of the term of 
the exemption specified in the decision. 
(5) The Director General of the Competition Board or his or her deputy shall revoke a decision to 
grant an exemption or shall amend the decision depending on the competitive situation in each 
specific case if: 1) substantial changes have occurred in the info rmation or conditions which were the basis for 
granting the exemption; 
2) the conditions or obligations attached to th e decision to grant the exemption have not been 
complied with; IP/N/1/EST/O/2 
Page 6  
 
 3) the exemption was granted on the basis of incomp lete or incorrect information and the agreement, 
practice or decision concerning which the exemption was granted does not comply with the conditions 
provided for in § 6 of this Act. (6) The Competition Board shall publish a notice c oncerning each decision made pursuant to clause 
11 (1) 1) or subsection 11 (3) of this Act or subsec tion (5) of this section in the official publication 
Ametlikud Teadaanded
2. 
 
Chapter 4 
Undertaking in Dominant Position 
 
§ 13. Definition of undertaking in dominant position 
(1) For the purposes of this Act, an undertaki ng 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 appreciab le extent independently of competitors, suppliers 
and buyers. 
(2) Undertakings with special or exclusive rights or  in control of essential facilities specified in §§ 14 
and 15 of this Act are also undertakings in a dominant position. § 14. Undertaking with special or exclusive rights (1) For the purposes of this Act, special or exclusiv e rights are rights granted to an undertaking by the 
state or a local government which enable the undert aking to have a competitive advantage over other 
undertakings in a goods market or to be the only undertaking in the market. 
(2) The procedure for the organisation of public co mpetitions for granting special or exclusive rights 
shall be established by the Government of the Repub lic. If legislation on the basis of which special or 
exclusive rights are granted does not provide the pr ocedure for the grant of a special or exclusive 
right, a public competition for the grant of such ri ght shall be organised pursuant to the procedure 
established by the Government of the Republic. 
§ 15. Undertaking cont rolling essential facility 
An undertaking is deemed to control essential faci lities or to have a natural monopoly if it owns, 
possesses or operates a network, infrastructure or  any other essential facility which other persons 
cannot duplicate or for whom it is economically ine xpedient to duplicate but without access to which 
or the existence of which it is impossi ble to operate in the goods market. 
§ 16. Abuse of dominant position 
The following are prohibited: any direct or indirect abuse by an undertaking in a dominant position of 
his or her position in the goods market, including: 1) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; 2) limiting production, service, goods markets, technical development or investment; 3) offering or applying dissimilar conditions to equi valent agreements with other trading parties, 
thereby placing some of them at a competitive disadvantage; 
4) making entry into an agreement subject to ac ceptance by the other parties of supplementary 
obligations which have no connection w ith the subject of such agreement; 
5) forcing an undertaking to concentrate, enter into  an agreement which restricts competition, engage 
in concerted practices or adopt a decision togeth er with the undertaking or another undertaking; 
6) unjustified refusal to sell or buy goods; 
7) failure by an undertaking with special or excl usive rights or in control of essential facilities to 
perform the obligation specified in clause 18 (1) 1) of this Act. § 17. Restrictions on activities of undertakings with special or exclusive rights or in control of essential facilities (1) The state agency or local government which gran ts special or exclusive rights to an undertaking 
may designate the prices to be used or impose ot her conditions or obligations on the undertaking so 
that the buyers of the goods of such undertaking or sellers of goods to such undertaking are not placed 
in a substantially worse situation than they woul d be if competition were present in the corresponding 
area of activity.  IP/N/1/EST/O/2 
 Page 7 
 
 
 (2) A state agency prescribed by law, the Gove rnment of the Republic or, in the case of an 
undertaking in control of essential facilities which pr ovides services within the territory of a local 
government, the local government may designate the pri ces to be used by an undertaking in control of 
essential facilities or impose other conditions or obli gations on the undertaking so that the buyers of 
the goods of such undertaking or sellers of goods to  such undertaking are not placed in a substantially 
worse situation than they would be if competiti on were present in the corresponding area of activity. 
(3) If the procedure for price regulation applicable to  undertakings with certain categories of special 
or exclusive rights or in control of essential facilities has not been established by an Act or legislation 
established on the basis thereof, the Government  of the Republic may establish the corresponding 
procedure. 
(4) If the procedure for price regulation applicable to  undertakings with special or exclusive rights or 
in control of essential facilities which provide service s within the territory of a local government has 
not been established by an Act or legislation estab lished on the basis thereof or if the procedure does 
not extend to such undertakings, the local government may establish the corresponding procedure. § 18. Obligations of unde rtakings with special or exclusive ri ghts or in control of essential facilities 
(1) An undertaking with special or exclusive ri ghts or in control of an essential facility shall: 
1) permit other undertakings to gain access to the network, infrastructure or other essential facility 
under reasonable and non-discriminatory conditions for the purposes of the supply or sale of goods; 
2) draw a clear distinction in its accounts between primary and secondary activities (for example production, transportation, mark eting and other activities of the undertaking), thereby ensuring 
accounting transparency. 
(2) An undertaking with special or exclusive rights or in control of an essential facility may refuse to 
grant other undertakings access to the network, infr astructure or other essential facility if the refusal is 
based on objective reasons, including cases where: 1) the safety and security of the equipment connect ed with the network, infrastructure or other 
essential facility or the efficiency and security of the operation of such network, infrastructure or 
facility are endangered; 
2) maintenance of the integrity or the inter-operab ility of the network, infrastructure or other essential 
facility is endangered; 3) equipment to be connected to the network, in frastructure or other essential facility is not in 
conformity with the established technical standards or rules; 4) the undertaking applying for access lacks the te chnical and financial capability and resources to 
provide services efficiently and safely to the necessar y extent through or with the assistance of the 
network, infrastructure or other essential facility; 5) the undertaking applying for access does not hold the permit prescribed by law for the corresponding activity; 6) as a result of such access, data protection provided by law is no longer ensured. 
 
Chapter 5 
Control of Concentrations 
 § 19. Concentration (1) Concentration is deemed to arise where: 
1) previously independent undertakings merge w ithin the meaning of the Commercial Code (RT I 
1995, 26–28, 355; 1998, 91–93, 1500; 1999, 10, 155; 23, 355; 24, 360; 57, 596; 102, 907; 2000, 29, 172; 49, 303; 55, 365; 57, 373; 2001, 34, 185); 2) an undertaking acquires control of th e whole or part of another undertaking; 
3) undertakings jointly acquire control of th e whole or part of a third undertaking; 
4) a natural person already controlling at least one un dertaking acquires control of the whole or part of 
another undertaking; 5) several natural persons already controlling at l east one undertaking jointly acquire control of the 
whole or part of another undertaking. IP/N/1/EST/O/2 
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 (2) The creation, by persons specified in clauses (1 ) 3) and 5) of this section, of a joint venture 
performing on a lasting and independent basis is also  deemed to be acquisition of control within the 
meaning of clauses (1) 3) and 5) of this section. (3) If the creation of a joint venture specified in sub section (2) of this section has as its object or effect 
the co-ordination of the competitive behaviour of  the founders amongst themselves or if the joint 
venture does not perform on a lasting and independent b asis, the provisions of § 4 of this Act apply to 
the creation of the joint venture. (4) For the purposes of this Chapter, a part of an  undertaking is the assets of the undertaking or an 
organisationally independent part of the undertakin g, including an enterprise which constitutes a basis 
for business activities and to which market turnover can be clearly attributed. 
(5) Transactions specified in subsection (1) of this section are not deemed to be a concentration if the 
transactions are carried out as an internal restructuring of a group of undertakings. § 20. Parties to concentration The following are parties to a concentration: 1) the merging undertakings; 
2) the natural person or undertaking who acquires cont rol of the whole or part of another undertaking; 
3) the natural persons or undertaki ngs who jointly acquire control of the whole or part of a third 
undertaking; 4) the undertaking or a part thereof which is the subject of the acquisition of control. § 21. Application of control of concentration (1) A concentration shall be subject to control if , during the previous financial year, the aggregate 
worldwide turnover of the parties to the concen tration exceeded 500 million kroons and the aggregate 
worldwide turnover of each of at least two parti es to the concentration exceeded 100 million kroons 
and if the business activities of at least one of the merging undertakings or of the whole or part of the undertaking of which control is acquired are carried out in Estonia. (2) A concentration shall not be subject to control if credit institutions, financial institutions, insurers 
or securities brokers whose normal business activities include transactions and dealing in securities 
for their own account or for the account of others, ac quire securities in an undertaking with a view to 
reselling them, provided that they do not exercise vo ting rights in respect of those securities with a 
view to determining the competitive behaviour of  the undertaking which issued the securities and 
provided that they exercise such voting rights only w ith a view to preparing the sale of the securities 
and that any such sale takes place within one year of the date of acquisition. 
(3) If sale of the securities specified in subsection (2) of this section is not possible within one year, 
the Director General of the Competition Board or hi s or her deputy may extend the term by a decision 
on the basis of a reasoned application made by the person concerned. § 22. Appraisal of concentrations (1) Appraisal of a concentration shall be based on the need to maintain and develop competition, 
taking into account the structure of goods market s and the actual and potential competition in the 
goods market, including: 1) the market position of the parties to the concen tration and their economic and financial power and 
opportunities for competitors to access the goods market; 2) legal or other barriers to entry into the goods market; 3) supply and demand trends  for the relevant goods; 
4) the interests of the buyers, sellers and ultimate consumers. 
(2) The Director General of the Competition Board or  his or her deputy shall prohibit a concentration 
if it may create or strengthen a dominant positio n as a result of which competition would be 
significantly restricted in the goods market. § 23. Turnover of parties to concentration 
(1) The turnover of a party to a concentration is comprised of the realised net turnover of the goods 
sold or services provided by the party during the financ ial year preceding the concentration, calculated 
pursuant to the Accounting Act (RT I 1994, 48, 790; 1995, 26–28, 355; 92, 1604; 1996, 40, 773; 42, 811; 49, 953; 1998, 59, 941; 1999, 55, 584; 101, 903).  IP/N/1/EST/O/2 
 Page 9 
 
 
 (2) The turnover of a credit or financial institution is deemed to comprise the total amount of the 
following income items after deduction of  value added tax and income tax: 
1) interest income and other similar income; 2) income from securities; 3) income from holdings in undertakings; 
4) commissions and service charges; 
5) net profit on financial operations; 6) other operating income. (3) The turnover of an insurer is deemed to co mprise the value of gross premiums written which 
comprises all amounts received and rece ivable in respect of insurance c ontracts issued by or on behalf 
of the insurer, including outgoing reinsurance premiums. 
§ 24. Calculation of turnover (1) The turnover of a party to a concentration speci fied in subsection 21 (1) of this Act shall be 
calculated by adding the turnovers of the following undertakings to the turnover of the party: 
1) undertakings controlled by the party to the concentration; 
2) undertakings controlling the party to the concentration; 
3) undertakings controlled by an undertaking specified in clause 2) of this subsection; 
4) undertakings jointly controlled by undertakings  specified in clauses 1)–3) of this subsection. 
(2) If control over an undertaking is acquired in a ma nner provided for in clauses 19 (1) 2)–5) of this 
Act, the turnover of the undertaking shall be calc ulated by taking into account only the turnover of 
such undertaking and the turnovers of the undertakings controlled by the undertaking. 
(3) If control over a part of an undertaking is acqui red in a manner provided for in clauses 19 (1) 2)–
5) of this Act, the turnover of the undertaking sh all be calculated by taking into account the turnover 
of only such part of the undertaking which is the subject of the transaction. (4) If control of the whole or part of an undert aking is acquired through two or more transactions, 
turnover shall be calculated by taking into account th e turnovers of all such parts which were subject 
to transactions during the preceding two years. 
(5) If within the preceding two years one and the same undertaking has acquired control of 
undertakings which operate in Estoni a in one and the same sector of the economy, the turnover of the 
undertaking of which control is acquired shall in clude the turnover of the undertakings of which 
control has been acquired within the two years preceding the concentration. 
(6) The guidelines for the calculation of turnover sha ll be established by a regulation of the Minister 
of Finance. The guideline may prescribe different met hods for calculation of the turnover of parties to 
a concentration which operate in different sectors of the economy. § 25. Notification of concentrations (1) A concentration subject to control shall be no tified to the Competition Board within one week as 
of: 
1) entry into the merger agreement; 
2) acquisition of control; 3) acquisition of joint control; 4) announcement of the public bid for securities. (2) Notification of a concentration shall be effected: 1) jointly by the parties to a concentration as specified in clause 19 (1) 1) of this Act; 
2) by an undertaking acquiring control as specified in clause 19 (1) 2) of this Act; 
3) jointly by undertakings acquiring joint control as specified in clause 19 (1) 3) of this Act; 4) by a person acquiring control as specified in clause 19 (1) 4) of this Act; 5) jointly by persons acquiring joint control as specified in clause 19 (1) 5) of this Act. 
(3) Credit institutions, securities brokers and insurers shall give notification of a concentration within 
the term provided for in subsection (1 ) of this section or not later th an within one week after obtaining 
permission from the state supervisory authority in the corresponding field of activity. § 26. Notice of concentration (1) A notice of concentration shall be submitted to  the Competition Board in writing and shall set out: IP/N/1/EST/O/2 
Page 10  
 
 1) information concerning the parties to the con centration, including business names, registry codes, 
contact details and areas of activity; 2) a description of the concentration; 3) data concerning the turnovers of the parties to the concentration during the preceding financial 
year; 
4) information concerning control exercised or holdi ngs owned in other undertakings by undertakings 
specified in clauses 24 (1) 1)–4) of this Act which belong to the same group as the parties to the concentration; 5) information concerning the goods markets, in cluding information concerning the market shares, 
main competitors, clients and the market shares of the competitors and clients of the parties to the 
concentration, and concerning barriers to entry into or exit from the goods market; 
6) a description of the effect of the concentr ation on the goods market, prepared by the person 
submitting the notice; 7) information concerning associations of undertaki ngs in which at least one of the parties to the 
concentration is a member; 
8) restrictions on competition, if any, which are di rectly related to and necessary for giving effect to 
the concentration, and the reasons for applying such restrictions; 
9) information concerning other circumstances, if  any, relating to the concentration, including 
proposals concerning the conditions and obligations  directly related to the concentration. 
(2) The following shall be annexed to a notice of concentration: 1) copies of the registration documents of the parties to the concentration from state registers; 
2) the documents on the basis of which the concentration is put into effect; 
3) the annual reports and annual accounts of the par ties to the concentration for the financial year 
preceding the concentration; 4) a document certifying the authority of the person submitting the notice; 5) a document certifying payment of the state fee; 
6) a list of the documents annexed to the notice of concentration. 
(3) Documents annexed to a notice of concentrati on shall be originals or certified copies thereof. 
(4) A notice shall contain the date of submission of the notice and the signature of the person 
submitting the notice. (5) The guidelines for the submission of notices of c oncentration shall be established by a regulation 
of the Minister of Finance. 
(6) If a notice does not meet the requirements provided for in subsections (1)–(4) of this section or the 
guideline specified in subsection (5) of this section,  the notice shall be deemed not to have been 
submitted. (7) The Director General of the Competition Boar d or his or deputy may establish a deadline for 
elimination of the deficiencies in a notice of concentration. 
(8) The Director General of the Competition Board or his or her deputy may release a party to a 
concentration from the obligation to submit some of the documents or information specified in 
subsection (1) or (2) of this section if such doc uments or information are not necessary for the 
proceedings concerning the concentration. (9) The person submitting a notice of concentration shall indicate information contained in the notice 
which the person deems to be a business secret. The fact of a concentration and the information 
provided for in clauses (1) 1) and 4) of this sec tion shall not be deemed to be a business secret. 
§ 27. Proceedings concerning concentration (1) Within thirty calendar days as of the submission of a notice of concentration, the Director General 
of the Competition Board or his or her deputy shall: 1) make a decision to grant permission to concentrat e if the concentration subject to control does not 
involve circumstances specified in subsection 22 (2) of this Act; 
2) make a decision to initiate supplementary pr oceedings in order to ascertain whether the 
concentration subject to control does or does not involve circumstances specified in subsection 22 (2) 
of this Act;  IP/N/1/EST/O/2 
 Page 11 
 
 
 3) send a written notice to the person who submitted the notice of concentration if the concentration 
does not fall within the scope of subsection 19 (1) or  (2) of this Act or is not subject to control 
pursuant to § 21 of this Act. (2) In the course of supplementary proceedings, the Director General of the Competition Board or his 
or her deputy shall make one of the fo llowing decisions within four months: 
1) to grant permission to concentrate; 
2) to prohibit the concentration; 3) to terminate the proceedings if the parties to  the concentration decide not to concentrate. 
(3) In order to avoid restriction of competiti on through creation or strengthening of a dominant 
position, the Director General of the Competition Bo ard or his or her deputy may, by a decision to 
grant permission to concentrate, attach conditions an d obligations directly related to the concentration 
for the parties to the concentration, taking  into account the proposals of the parties. 
(4) A concentration is permitted if the Director Ge neral of the Competition Board or his or her deputy 
has not made one of the decisions provided for in sub section (1) and (2) of this section within the term 
specified in the same subsection. 
(5) Before adoption of a decision specified in s ubsection (2) of this section, the parties to the 
concentration shall not perform any acts directed at giving effect to the concentration or do anything 
that would hinder execution of a decision prohibiting the concentration. Unless concentration is permitted pursuant to subsection (4) of this section, all such acts are void until permission is obtained. 
(6) If the Director General of the Competition Board or  his or her deputy sets a term for elimination of 
the deficiencies contained in a notice of concentrati on, the terms provided for in subsection (1) and (2) 
of this section begin to run as of the elimination of the deficiencies. 
(7) If the parties to a concentration fail to submit the necessary information or materials within the 
term set by the Director General of the Competitio n Board or his or her deputy, the running of the 
terms provided for in subsections (1) and (2) of th is section shall be suspended until the information 
or materials is submitted. 
(8) The parties to a concentration and their represe ntatives have the right to examine all materials 
collected on the concentration, ex cept for the business secrets of othe r undertakings and the internal 
documents of the Competition Board. (9) The Competition Board shall publish a notice con cerning receipt of a notice of concentration, a 
decision made on the basis of subsection (1) or (2) of this section or a written notice sent on the basis 
of clause (1) 3) of this section in the official publication Ametlikud Teadaanded . 
(10) Interested third parties have the right to s ubmit opinions and objections  to the Competition Board 
within seven calendar days as of publication of  a notice concerning receipt of a notice of 
concentration specified in subsection (9) of this section. § 28. Hearings (1) If the Competition Board finds that a concen tration subject to proceedings involves the 
circumstances specified in subsection 22 (2) of this Act, the person who submitted the notice of 
concentration shall be notified of such circumstances in writing. (2) If necessary, an oral hearing of the parties to a concentration may be held at a time and place specified by the Director General of the Competition Bo ard or his or her deputy, and the persons to be 
heard shall be notified of the hearing in writing not less than ten calendar days before the hearing. On the basis of a reasoned written request of a person su mmoned to a hearing, the Director General of the 
Competition Board or his or her deputy may cha nge the term or the place of the hearing. 
§ 29. Nullity of concentration (1) The Director General of the Competition Board or his or her deputy may decide to revoke a decision to grant permission to concentrate if: 1) the parties to the concentration submitted false,  misleading or incomplete information which was a 
determining factor for the decision; 
2) the concentration was effected in violation of a term or other condition or obligation specified in 
this Act or the decision to grant permission to concentrate. (2) Revocation of permission to concentrate does not deprive the parties to the concentration of the 
right to apply for new permission to concentrate. IP/N/1/EST/O/2 
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Chapter 6 
State Aid 
 § 30. General Provisions 
(1) State aid is an advantage granted directly or i ndirectly in any form whatsoever by the state or a 
local government (hereinafter grantor of state aid) or from their resources which distorts or threatens 
to distort competition by favouring certain undertak ings or the production or sale of certain goods. 
Such aid may be financial aid, postponement of th e payment of tax arrears, debt write-offs and the 
grant of loans under more favourable terms than usually granted to othe r undertakings, and other 
forms of aid. 
(2) The following shall also be deemed  to be grantors of state aid: 
1) foundations which directly or indirectly u se the resources of the state or a local government; 
2) non-profit associations which directly or indire ctly use the resources of the state or a local 
government; 
3) legal persons in public law which directly or i ndirectly use the resources of the state or a local 
government; 4) companies in which the state, a local governme nt or any other legal person in public law holds 
more than one-half of the share capital or votes represented by shares; 5) companies belonging to the same group as a comp any specified in clause 4) of this subsection. 
(3) This Act does not grant the right to receive state aid but provides for the right of a grantor of state 
aid to grant state aid to an undertaking if the provisions of this Act are complied with. 
(4) Activities of a person specified in subsection (2) of  this section are not deemed to be state aid in 
cases where the person operates as a rational undertak ing would usually operate in a market economy. 
(5) The provisions of this Chapter do not apply to ai d granted as state aid to undertakings engaged in 
the production, processing or marketing of goods prescribed in Article 63 (5) of the Europe 
Agreement establishing an association between the European Communities and their Member States, 
of the one part, and the Republic of Estonia, of the other part (RT II 1995, 22–27, 120). The 
conditions and procedure for granting such aid shall be provided by separate Acts. 
§ 31. General and special conditions for granting state aid (1) State aid may be granted only if it is compatib le with the public interest and complies with the 
provisions of this Act and the special conditions estab lished on the basis of subsection (6) of this Act. 
(2) The following types of state aid are deemed to be compatible with the public interest: 
1) state aid having a social character provided that such aid is granted wit hout discrimination related 
to the origin of the goods concerned; 2) state aid to make good the damage caused by natural disasters or other exceptional occurrences. 
(3) In addition to the provisions of subsection (2) of  this section, the following may be considered to 
be compatible with the public interest: 
1) state aid to promote the economic development of areas where the standard of living is very low or 
where there is serious unemployment; 2) state aid to promote the execution of a project of common European interest or to remedy a serious disturbance in the Estonian economy; 3) state aid to facilitate the development of certain economic activities or economic areas, where such 
aid does not adversely affect trading conditions to  an extent contrary to the public interest; 
4) state aid to promote culture and heritage conservation. (4) State aid shall be granted for a specified term and to the extent necessary to achieve an objective 
specified in subsection (2) or (3) of this section. The grant of such state aid shall be terminated if it no 
longer complies with the general conditions provided in  subsections (2) and (3 ) of this section or the 
special conditions established on the basis of subsection (6) of this section. 
(5) In calculating the total amount of state aid, stat e aid granted to an undertaking out of the resources 
of the European Communities or the Member States thereof shall also be taken into account unless 
otherwise provided by this Act or the special cond itions established on the basis of subsection (6) of 
this section.  IP/N/1/EST/O/2 
 Page 13 
 
 
 (6) The special conditions for granting state aid and the related definitions shall be established by the 
Government of the Republic separately for each area of activity, taking into account the provisions of 
subsection 63 (2) of the Europe Agreement. § 32. State aid relating to export activities and aid to substitute imports (1) State aid relating to export activities (hereinafter  export aid) and aid to substitute imports are not 
compatible with the public interest. 
(2) Export aid is any aid directly linked to the quantities of goods exported, to the establishment and 
operation of a distribution network or to any other current expenditure linked to the export activity. 
(3) Aid to substitute imports is aid granted to an undertaking for using domestic goods instead of 
imported goods. 
(4) Aid granted to an undertaking for participating in trade fairs or for studies or consultancy services 
needed for the launch of a new or existing product in a new market is not deemed to be export aid. (5) Export guarantees and credits may be deemed to be compatible with the public interest if the 
guarantees or credits do not contradict the Europe Agreement or any other international agreement. 
§ 33. De minimis aid 
(1) Aid granted during three consecutive years in an amount not exceeding 1.5 million kroons per 
undertaking is deemed to be de minimis aid. De mi nimis aid is deemed to be compatible with the 
public interest. (2) The provisions of subsection (1) of this secti on do not apply in the case of state aid granted to 
transport, export aid or aid to substitute imports. (3) It is not necessary to apply for permission to gran t state aid, as provided in § 34 of this Act, in 
order to grant de minimis aid. 
§ 34. Permission to grant state aid (1) State aid shall be granted only with the prior wr itten permission of the Minister of Finance and the 
grant of state aid shall not commence before the Mi nister of Finance has granted permission to grant 
state aid or deemed the state aid to be permitted pursu ant to subsection 36 (3) of this Act or before the 
Government of the Republic has granted permission to  grant state aid pursuant to § 48 of this Act. 
(2) Applications for permission to grant state aid (h ereinafter applications for permission) shall be 
submitted to the Minister of Finance together w ith the necessary information taking into account the 
terms in the proceedings provided for in this Act. The format(s) of applications for permission and the 
instructions for completing the applications sha ll be established by the Minister of Finance. 
(3) A decision concerning an application for permission to grant state aid shall be made by the 
Minister of Finance pursuant to § 36 or 38 of this Act. The decision shall be adopted by a directive of 
the Minister of Finance which shall contain a refe rence to the relevant provision of this Act. The 
applicant for permission shall be immediately notified of the decision in writing. § 35. State aid scheme and individual state aid (1) A grantor of state aid may apply for permission to grant state aid both in the case of a state aid 
scheme (hereinafter aid scheme) and in the case of individual state aid. 
(2) A state aid scheme is based on any legal act or contract which provides for the possibility for state 
aid to be granted to undertakings not previously de fined by the act or contract in order to promote 
achievement of one and the same objective or several similar objectives. (3) Individual state aid is state aid which is not granted on the basis of an aid scheme, or state aid which is granted on the basis of an aid scheme and for which separate permission must be applied for 
from the Minister of Finance. 
§ 36. Proceedings concerning applicatio ns for permission to grant state aid 
(1) The Minister of Finance shall examine the appli cations for permission submitted to him or her and 
make one of the following decisions: 1) to return the application if the measures set out in the application do not constitute state aid within 
the meaning of subsection 30 (1) of this Act; 
2) to grant permission to grant state aid if the state aid specified in the application is compatible with 
the public interest; 3) to initiate supplementary proceedings concerning th e application for permission to grant state aid if 
doubts are raised as to the compatibility of the state aid with the public interest. IP/N/1/EST/O/2 
Page 14  
 
 (2) The Minister of Finance shall make one of th e decisions provided for in subsection (1) of this 
section within two months after all the necessary in formation is submitted by  the person applying for 
permission to grant state aid or the beneficiary of the state aid or a notice specified in subsection 37 (3) of this Act is received. The above term may be altered with the mutual written consent of the 
Minister of Finance and the applicant for permission. 
(3) If, within the term provided for in subsection (2 ) of this section, an applicant for permission has 
not received a written notice concerning a decision made by the Minister of Finance pursuant to 
subsection (1), the person shall notify the Minister of  Finance thereof. If, within fifteen working days 
after receipt of the abovementioned notice, the Mini ster of Finance has not notified the applicant for 
permission of a decision made pursuant to subsection (1) of this section, the grant of state aid is 
deemed to be permitted by the Minister of Finance. 
§ 37. Requests for information (1) The Minister of Finance has the right to request an applicant for permission to grant state aid, the 
beneficiary and third parties to submit inform ation necessary for the proceedings concerning the 
application within two months after the date of recei pt of the application or any additional information 
requested. The above term shall be altered accordi ng to how the term provided for in subsection 36 
(2) of this Act is altered. (2) If information set out in an application submitte d pursuant to subsection 34 (2) of this Act by an 
applicant for permission to grant state aid is incorrect, incomplete or misleading or if additional information is necessary in order to examine the application, the applicant for permission, the 
beneficiary of the aid or third parties shall be notif ied thereof in writing and re quested to eliminate the 
deficiencies or submit the information within a specified term. 
(3) An application for permission shall be deemed not  to have been submitted if the deficiencies have 
not been eliminated or the applicant has not submitte d all the information requested by the end of the 
term specified in subsection (2) of this section or if  the applicant has not give n notice by then that the 
additional information requested is not available or  has already been submitted. The unavailability of 
information shall be reasoned. The applicant fo r permission shall be given written notice if the 
application for permission is deem ed not to have been submitted. 
(4) The Minister of Finance may, with good reason, extend the term specified in subsection (2) of this 
section on the basis of a corresponding petition from the applicant for permission. § 38. Termination of supplementary proceedings (1) The Minister of Finance shall terminate supplem entary proceedings initiated on the basis of clause 
36 (1) 3) of this Act by making one of the following decisions: 
1) to grant permission to grant state aid if the st ate aid is compatible with the public interest; 
2) to return the application if, after amendment of  the planned aid scheme or individual state aid by 
the applicant, the Minister of Finance finds that  the measures set out in the application do not 
constitute state aid within the meani ng of subsection 30 (1) of this Act; 
3) to grant permission to grant state aid if, af ter amendment of the aid scheme or the planned 
individual state aid by the applicant, the Minister of Finance finds that the state aid is compatible with 
the public interest; 4) to refuse to grant permission to grant state aid if the state aid is incompatible with the public 
interest. (2) The Minister of Finance may attach to a decision provided for in clause (1) 1) or 3) of this section 
conditions corresponding to the special conditions estab lished on the basis of subsection 31 (6) of this 
Act subject to which an aid may be deemed comp atible with the public interest and may lay down 
obligations to enable compliance w ith the decision to be monitored. 
(3) The Minister of Finance shall make the decisi ons provided for in subsection (1) of this section 
within six months after receipt of all the necessary information. If necessary, the above term may be 
altered with the mutual written consent of the Minister of Finance and the applicant for the 
permission. § 39. Withdrawal of application for permission to grant state aid (1) An applicant for permission to grant state aid provided for in subsection 34 (2) of this Act may 
withdraw the application before the Minister of Finance has made a decision pursuant to § 36.  IP/N/1/EST/O/2 
 Page 15 
 
 
 (2) If supplementary proceedings have been initiated on the basis of clause 36 (1) 3) of this Act and 
the applicant for permission withdraws the applic ation before the Minister of Finance makes a 
decision pursuant to § 38, the Minister of Finance sh all, by a directive, make a decision to terminate 
the proceedings and to return the application. § 40. Publication of decisions 
Decisions made by the Minister of Finance on the b asis of clause 36 (1) 2) or 3), clause 38 (1) 1), 3) 
or 4), subsection 39 (2) or subsection 43 (1) of this  Act shall be published in the official publication 
Ametlikud Teadaanded . 
§ 41. Revocation of decisions (1) The Minister of Finance may revoke a decision made pursuant to clause 36 (1) 1) or 2) or 
subsection 38 (1) of this Act if the decision w as based on incorrect information submitted during the 
proceedings which was a determining factor for th e decision. Before revoking a decision and making 
a new decision, the Minister of Finance shall initia te supplementary proceedings pursuant to clause 36 
(1) 3) of this Act. (2) If the Minister of Finance makes a decision provi ded for in clause 38 (1) 4) of this Act after 
termination of the supplementary proceedings specifi ed in subsection (1) of this section, he or she 
may demand recovery of the state aid pursuant to § 43. § 42. Proceedings concerning unlawful state aid and misuse of state aid (1) Unlawful state aid is state aid which is granted after the entry into force of this Act and for which 
the corresponding permission has not been granted by th e Minister of Finance or which is not deemed 
to have been permitted pursuant to subsection 36 (3 ) of this Act or concerning which permission to 
grant state aid has not been obtained from the Gove rnment of the Republic pursuant to § 48 of this 
Act. (2) Misuse of state aid is the use of state aid for purposes other than the intended use or purpose 
specified in the information submitted concerning th e state aid, or non-compliance with the conditions 
or obligations provided for in subsection 38 (2) of this Act. 
(3) All interested third parties may notify the Minist er of Finance of unlawful state aid or the misuse 
of state aid. (4) If the Minister of Finance receives informati on concerning alleged unlawful state aid or alleged 
misuse of state aid, he or she shall issue a precept: 1) to the grantor of the state aid or the benefi ciary of the state aid requiring information to be 
submitted within a specified term; 
2) to the grantor of the state aid requiring an application for permission to grant state aid to be 
submitted within a specified term; 3) to the grantor of the state aid requiring suspensi on of the grant of unlawful state aid or alleged 
misused state aid until the Minister of Finance has ma de a decision provided for in clause 36 (1) 1) or 
2) or subsection 38 (1) of this Act concerning the matter. 
(5) In the course of proceedings concerning unlawful st ate aid or the misuse of state aid, the Minister 
of Finance shall make a decision pursuant to § 36 of this Act. If a grantor of state aid or a beneficiary of state aid fails to comply with a precept provided for in subsection (4) of this section or to submit the additional information requested, the decisi on shall be made on the basis of the existing 
information. Supplementary proceedings initiated on th e basis of clause 36 (1) 3) of this Act shall be 
terminated by making one of the decisions  provided for in subsection 38 (1). 
(6) If the Minister of Finance makes a decision provi ded for in clause 38 (1) 4) of this Act after 
termination of supplementary proceedings, he or she may demand that the state aid is recovered 
pursuant to § 43. § 43. Recovery of state aid (1) If a decision provided for in clause 38 (1) 4) is made after supplementary proceedings conducted 
on the basis of § 41 or 42 of this Act, the Minister of Finance has the right to issue a precept to the 
grantor or beneficiary of the state aid requiring revocation of the decision to grant state aid or recovery of the state aid. (2) In calculating the amount of state aid to be reco vered, the size of the aid and expenses before the 
deduction of direct taxes shall be taken into account. If aid was granted in a form other than monetary IP/N/1/EST/O/2 
Page 16  
 
 support, the aid shall be converted into financial s upport of an equal value. Aid granted in instalments 
shall be discounted to the present value. The reference interest rate applicable to the state aid at the 
time when the aid was made available shall be used as the discount rate. 
(3) The Minister of Finance has the right to demand recovery of state aid specified in subsections 41 
(2) and 42 (1) and (2) of this Act within ten years. Th e term begins to run as of the date when the state 
aid is made available. The running of the term  shall be suspended for the period during which 
proceedings are conducted by the Minister of Finance or the matter is heard by a court. (4) If a beneficiary of state aid fails to comply with a precept concerning recovery of the state aid, the Minister of Finance has the right of recourse to the courts. § 44. Demand of interest 
In each case of the recovery of state aid, the Minister of Finance has the right to demand interest to be 
paid on the amount of state aid recovered on the basi s of subsection 43 (1) of this Act. The interest 
collected shall be transferred to the revenue of th e state budget. Interest shall be calculated as of the 
date when the state aid was made available, using th e average interest rate applied by Estonian banks 
to loans granted to undertakings in non-financial sectors during the month preceding the date of the 
decision to permit the grant of the state aid or, in  the absence of such decision, the month preceding 
the grant of the state aid. § 45. Precepts (1) A precept specified in subsection 42 (4) or 43 (1) of this Act shall set out: 
1) the name and position of the person preparing the precept; 
2) the date of issue of the precept; 
3) the name and address of the recipient of the precept; 
4) the bases for issuing the precept together with references to the provisions of relevant Acts; 
5) in the case provided for in clause 42 (4) 1) of this  Act, an indication of the information requested; 
6) the term for compliance with the precept; 7) the amount of the penalty payment applied upon failure to comply with the precept; 
8) the procedure and term for appeal against the precept. 
(2) A precept of the Minister of Finance may prescribe obligatory acts to be performed upon 
suspension of the grant of the state aid. § 46. Imposition of penalty payment (1) In the case of failure to comply  with a precept provided for in § 45 of this Act, the Minister of 
Finance may impose a penalty payment of up to 50 000 kroons on natural persons and up to 100 000 
kroons on legal persons. 
(2) A penalty payment provided for in subsection (1 ) of this section may be imposed several times 
until the corresponding precept is complied with. § 47. State aid committee (1) The Government of the Republic shall form a state aid committee (hereinafter committee) whose 
function is to submit proposals to the Government  of the Republic concerning applications for 
revocation of a decision of the Minister of Finan ce submitted on the basis of subsection 48 (1) of this 
Act. (2) The procedure for the formation of and the or ganisation of the work of the committee shall be 
established by the Government of the Republic. § 48. Proceedings concerning disputable cases of state aid 
(1) If the Minister of Finance attaches to his or her decision conditions or obligations on the basis of 
subsection 38 (2) of this Act or makes a decision provided for in clause 38 (1) 4) of this Act to which the applicant for permission does not consent, the applicant for permission has the right to address the 
committee and apply for the decision of the Minister of Finance to be revoked and a new decision to be made, and the committee shall examine the matter and send the materials together with its 
proposals to the Government of the Republic for a decision. 
(2) All materials submitted to the Minister of Finan ce by an applicant for permission, the beneficiary 
or third parties and the decision made by the Minister of Finance concerning the case shall be 
submitted to the committee.  IP/N/1/EST/O/2 
 Page 17 
 
 
 (3) The Government of the Republic shall examine applications submitted thereto and shall make one 
of the following decisions: 1) to revoke the decision of the Minister of Finance and to grant permission to grant state aid by an order of the Government of the Republic; 2) to deny the application submitted to the Government of the Republic. 
§ 49. Reporting on state aid 
(1) The format of a report on the grant and use of state aid and the due date for the submission of the report shall be established by the Minister of Finan ce. Grantors of state aid shall submit reports on the 
grant and use of state aid to the Minister of Finan ce. Reports shall also be submitted on the grant and 
use of de minimis state aid. 
(2) Within twelve months as of the end of a cale ndar year, the Minister of Finance shall prepare a 
report on all state aid granted during the given year. The report shall be submitted to the Government 
of the Republic for approval.  
Chapter 7 
Unfair Competition 
 § 50. Prohibition on unfair competition (1) Unfair competition is taken to mean dishonest trading practices and acts which are contrary to 
good morals and practices, including: 1) publication of misleading information, presentation or ordering of misleading information for 
publication, or disparagement of a competitor or the goods of the competitor; 
2) misuse of confidential information or of an employee or representative of a competitor. (2) Unfair competition is prohibited. (3) The provisions of the Advertising Act (RT I 1997,  52, 835; 1999, 27, 388; 30, 415; 2001, 23, 127; 
50, 284) apply to misleading, offensive or deni gratory information as a method of advertising. 
§ 51. Publication of misleading information, presen tation or ordering of misleading information for 
publication, or disparagement of competitor or goods of competitor (1) Misleading information is incorrect information wh ich, given ordinary attention on the part of the 
buyer, may leave a misleading impression of an offer or which harms or may harm the reputation or economic activities of another undertaking (2) Publication, or presentation or ordering for pu blication, of misleading information concerning 
either oneself or another undertaki ng participating in a goods market or concerning the goods or work 
equipment of such undertaking is prohibited, ex cept in cases where publicatio n of such information 
has been ordered from the publisher of the informa tion or the publisher is not responsible for the 
correctness of the information presented thereto. (3) Information specified in subsection (1) of this section primarily refers to information concerning 
the origin, qualities, method of production, means or sources of supply, prices, tariffs, discounts, 
awarding as a prize, reasons for sale and the size of the stock of the goods offered, as well as the preferential rights, financial status and other qualities of the undertaking. 
§ 52. Misuse of confidential information or of employee or representative of another undertaking (1) Misuse of confidential information is the use of confidential information regarding a competitor 
where the corresponding information was obtained illegally. 
(2) Misuse of an employee or representative of a comp etitor is the exertion of influence on him or her 
to act in the interests of the influencing party or a third party. § 53. Ascertainment of unfair competition The existence or absence of unfair competition shall be  ascertained in a dispute between parties held 
pursuant to civil procedure. 
 
    IP/N/1/EST/O/2 
Page 18  
 
 Chapter 8 
State Supervision 
 § 54. Organisation of state supervision (1) The Competition Board shall exercise state supe rvision over implementation of this Act, except 
implementation of the provisi ons of Chapters 6 and 7. 
(2) The Minister of Finance shall exercise state s upervision over implementation of the provisions of 
Chapter 6. § 55. Competence of Competition Board (1) The Competition Board is competent to perform all acts assigned to it by this Act and to take 
measures to protect competition. 
(2) The Competition Board shall an alyse the competitive situation, propose measures to promote 
competition, make recommendations to improve the competitive situation, make proposals for 
legislation to be passed or am ended, and develop co -operation with the co mpetition supervisory 
authorities of other states and associations of states. 
§ 56. Co-operation with European Commission 
Pursuant to the Europe Agreement establishing an association between the European Communities 
and their Member States, of the one part, and the Re public of Estonia, of the other part and decision 
No. 1/99 of the Association Council between the Eu ropean Communities and their Member States, of 
the one part, and the Republic of Estonia, of th e other part adopting the necessary rules for the 
implementation of Article 63 (1) i), (1) ii) and (2) of the Europe Agreement establishing an 
association between the European Communities and th eir Member States, of the one part, and the 
Republic of Estonia, of the other part (RT II 1999, 15, 94), co-operation between the European 
Commission and the Competition Board shall be eff ected pursuant to the general principles provided 
for in Article 1 of the above rules. § 57. Right of Competition Board to request information 
(1) The Competition Board has the right to re quest all natural and legal persons and the 
representatives thereof and all state agencies and local  governments and the officials thereof to submit 
information necessary for: 1) analysing the competitive situation; 2) defining a goods market; 3) inspecting an agreement, activity or decision; 
4) deciding on the grant of exemptions; 
5) monitoring the activities of an undertaking in a dominant position; 6) monitoring a concentration; 7) deciding on initiation of a proceeding; 8) conducting proceedings concerning viola tions or possible violations of law; 
9) exercising other supervision over the implementation of this Act. 
(2) The information provided for in subsection (1 ) of this section shall be requested in writing, 
whereupon the purpose of and the legal basis for the request shall be specified and the sanctions for 
failure to provide information and for provision of  incomplete, incorrect or misleading information 
shall be referred to. The term for submission of the information shall be not less than ten calendar 
days. 
(3) The Competition Board has the right to reque st natural persons, including representatives or 
employees of legal persons or associations which are not legal persons and officials or representatives 
of state agencies or local governments, to provide explanations at the Competition Board or on site. 
Explanations shall be prepared in writing and th e person requesting an expl anation and the person 
providing the explanation shall si gn each page of the explanation. If a person providing an 
explanation refuses to sign the explanation, an entr y indicating refusal to sign the explanation and the 
reasons for the refusal shall be made in the explanation. § 58. Summoning to Competition Board  IP/N/1/EST/O/2 
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 (1) Natural persons, including representatives or empl oyees of legal persons or associations which are 
not legal persons and officials or representatives of state agencies or local governments, shall be 
summoned to the Competition Board by a summons which sets out: 1) the name or official title of the person summoned; 2) the reason and legal basis for summoning the person; 
3) if a case has been opened, the number of the case; 
4) the place and time of appearance; 5) the rights of the person summoned, includi ng the right to submit a written explanation; 
6) the obligation to give notice of good reasons for failure to appear. 
(2) A summons shall be served against signature or sent by post with advice of delivery (hereinafter 
service) and the person summoned or his or her represen tative shall be granted a term of not less than 
ten calendar days to appear. By agreement of the parties, the term may be altered and the summons 
may be delivered orally. (3) Upon service of a summons on a person, the summons  shall also be deemed  to have been served 
on the representative of the person, and upon service of a summons on the representative of a 
participant in a proceeding, the su mmons shall also be deemed to have been served on the principal. 
(4) A summons is deemed to have been served on a le gal person if it is delivered to the address of the 
legal person entered in the register. (5) If it is not possible to appear within the sp ecified term, the person summoned shall immediately 
give notice thereof. (6) Good reasons for the failure of a person summoned to appear are absence not related to evasion of 
the proceedings, belated receipt of the summons or  other circumstances considered to be a good 
reason by the person conducting the proceedings. § 59. Right of Competition Board to request submission of materials (1) The Competition Board has the right to re quest all natural and legal persons and the 
representatives thereof and all state agencies and local governments and the officials and 
representatives thereof to submit the originals of docum ents, drafts or other materials, or true copies 
thereof, certified by the signature of the person s ubmitting the copies. Upon submission of a copy, the 
Competition Board has the right to request submi ssion of the original document to verify the 
authenticity of the copy. (2) At the request of a person who submits mate rials or the representative of such person, the 
Competition Board shall issue confirmation concerning receipt of the materials and the person or the 
representative has the right to the return of the orig inals of the documents, drafts and other materials 
by the Competition Board after completion of the supervisory operations. § 60. Inspection of seat or place of business of undertaking (1) In order to establish a violation or possible violati on of this Act, an official or representative of the 
Competition Board authorised by a directive of the Director General of the Competition Board or his 
or her deputy (hereinafter person conducting an inv estigation) has the right, without prior warning or 
special permission, to inspect the seat and pl ace of business of an undertaking, including the 
enterprises, territory, buildings, rooms and means of  transport of the undertaking, both during working 
hours and at any time the place of business is used. With the consent of the undertaking, the seat, 
place of business or enterprises of the undertaking may also be inspected at any other time. 
(2) An inspection provided for in subsection (1) of this section shall be c onducted with the knowledge 
of the undertaking, or a representative or employee thereof, and they have the right to be present 
during the inspection. (3) At the seat or place of business of an undertak ing under inspection, th e person conducting the 
inspection shall present to the undertaking, its repr esentative or employee a certified copy or extract 
of the decision of the Director General of the Competition Board or his or her deputy concerning 
initiation of the proceedings with regard to the case,  and a directive of the Director General of the 
Competition Board or his or her deputy concerning  the authorisation of the person conducting the 
inspection. (4) During an inspection provided for in subsecti on (1) of this section, the person conducting the 
inspection has the right to: IP/N/1/EST/O/2 
Page 20  
 
 1) immediately examine documents relating to the activities of the undertaking, drafts thereof and 
other materials and to obtain, at the expense of the person under inspection, copies or transcripts thereof, the authenticity of which shall be certif ied by the signature of the person submitting them; 
2) immediately examine data or databases kept in electronic form on computer at the seat or place of business of the undertaking under inspection and elect ronic data media held at the seat or place of 
business and to make printouts and electronic copies thereof at the expense of the undertaking under 
inspection, the authenticity of whic h shall be certified by the signa ture of the person under inspection 
or his or her representative or employee on the printout or on a separate page; 3) request the undertaking or a representative or em ployee thereof to submit explanations which shall 
be documented pursuant to subsection 57 (3) of this Act. 
(5) The person conducting an inspection is require d to prepare a summary of the results of the 
inspection. (6) A summary specified in subsecti on (5) of this section shall set out: 
1) the time and place of preparation of the summary; 2) the name and position of the person preparing the summary; 
3) in the case of a natural person under inspection, the name and position of th e person or his or her 
representative or employee or, in the case of a legal person, the name of the legal person and the name 
and position of the representative or  employee of the legal person; 
4) a description of the course of the inspection; 5) a notation concerning presentation of a copy or extr act of the decision or the directive specified in 
subsection (3) of this section to the undertaking unde r inspection or the representative or employee 
thereof; 
6) a list of the explanations received from the undertaking under inspection or the representative or 
employee thereof; 7) a list of the materials obtained in the course of the inspection; 8) a notation concerning the participation of an interpreter or translator if one is involved; 
9) the notes of the undertaking under inspection or the representative or employee thereof concerning 
the inspection; 10) a notation indicating that the undertaking under inspection or the representative or employee 
thereof has received one copy of the summary. (7) If an undertaking or the representative or em ployee thereof interferes with an inspection, a 
corresponding entry shall be made in the summary indicating the reasons for such interference, if 
possible. 
(8) A summary shall be prepared in two copies wh ich shall be signed by the person preparing the 
summary and the representative or employee of th e undertaking under inspection. Each page of the 
summary shall be signed and the undertaking unde r inspection and the Competition Board shall each 
receive one copy of the summary. All materials ob tained in the course of the inspection shall be 
annexed to the copy held by the Competition Board. 
(9) If an undertaking under inspection or the repr esentative or employee thereof refuses to sign a 
summary, a corresponding entry shall be made in th e summary indicating the reasons for such refusal. 
§ 61. Making of recommendations  and limits of proceedings 
(1) The Director General of the Competition Boar d or his or her deputy may make recommendations 
to state agencies, local governments and natura l and legal persons as to improvement of the 
competitive situation. 
(2) In the course of a proceeding, the Competition Bo ard has the right to verify compliance with all 
the provisions of this Act which are subject to su pervision by the Competition Board and, for that 
purpose and if necessary, extend the circle of participants in the proceedings and transcend the limits of the proceedings initiated on the basis of an app eal or petition (hereinafter appeal) or on its own 
initiative. 
§ 62. Precepts and imposit ion of penalty payment 
(1) The Director General of the Competition Board or  his or her deputy has the right to issue a precept 
to a natural or legal person if the person:  IP/N/1/EST/O/2 
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 1) fails to submit information or materials within  the term specified in a written request of the 
Competition Board; 2) interferes with an inspection at the seat or place of business of the undertaking; 
3) fails to appear at an oral hearing, at the pr eparation of an administrative offence report or when 
requested to provide explanations; 
4) puts into effect a concentration which is subject  to control but concerning which a decision has not 
been made on the basis of clause 27 (1) 1) or (2 ) 1) of this Act or if a decision prohibiting the 
concentration has been made on the basis of clause  27 (2) 2) of this Act or the permission for the 
concentration has been revoked by the Director General of the Competition Board or his or her 
deputy. 
(2) A precept imposes an obligation to perform a re quired act or to refrain from a prohibited act. 
(3) A precept shall include a warning which sets out: 1) the due date for compliance with the precept (if the precept contains an obligation to refrain from a 
certain act, the due date need not be indicated); 2) the size of the penalty payment imposed  upon failure to comply with the precept; 
3) the procedure and term for appeal against the precept. 
(4) In the case of failure to comply with a precept,  the Director General of the Competition Board or 
his or her deputy may impose a penalty payment of  up to 50 000 kroons on natural persons and up to 
100 000 kroons on legal persons. (5) A penalty payment provided for in subsection (4 ) of this section may be imposed several times 
until the corresponding precept is complied with. 
§ 63. Obligation to maintain business secrets 
(1) Unless otherwise provided by law, the Competition Board does not have the right to disclose the business secrets, including information subject to banking secrecy, of an undertaking which have 
become known to the Competition Board in the course of performance of its official duties to other 
persons nor publish them without the consent of the undertaking. 
(2) Information subject to disclosure to the public, decisions made by the Director General of the 
Competition Board or his or her deputy and administrative offence reports prepared by the Director General of the Competition Board or his or her deput y or any other official of the Competition Board 
from which business secrets have been exclude d are not deemed to be business secrets. 
(3) Upon preparation of an administrative offen ce report, the Competition Board shall not use any 
information against an undertaking which, in accordan ce with the provisions of this Act, may not be 
disclosed to the undertaking. 
(4) The Competition Board shall exclude business secrets from the texts of decisions subject to 
disclosure. § 64. Appeals (1) Appeals shall be submitted to the Co mpetition Board in writing and shall set out: 
1) the addressee of the appeal; 
2) the name, permanent residence or seat (postal address) and telecommunications numbers of the appellant; 3) the date of submission of the appeal; 4) the content of the appeal, the reasons why the ap pellant finds that competition has been restricted, 
and the rights of the appellant which have been violated; 
5) the clearly expressed request of the appellant; 
6) confirmation from the appellant that the appellant has not filed an action with a court concerning 
the same matter; 7) the preferable manner of delivery of a decision provided for in subsection 65 (1) of this Act; 8) other circumstances considered  significant by the applicant. 
(2) An appeal shall be signed by the appellant or the representative thereof. An action filed on behalf 
of a legal person or an association which is not a legal person shall be signed by the person who has 
the corresponding authority. The representative of an  appellant shall annex a document certifying his 
or her authority. The authority of the legal represen tative of a legal person sh all be certified by a valid IP/N/1/EST/O/2 
Page 22  
 
 copy of the corresponding registry card. Proof ava ilable to the appellant shall be annexed to the 
appeal. (3) On the basis of a reasoned request from an appell ant, the name of the appellant may, by a decision 
of the Director General of the Competition Board or hi s or her deputy, be declared not to be subject to 
disclosure to third parties. 
§ 65. Initiation of or refusal to initiate proceedings concerning case 
(1) Within thirty calendar days after the receipt of  an appeal, the Director General of the Competition 
Board or his or her deputy shall make a decision to: 1) initiate proceedings concerning the case, or 2) refuse to initiate proceedings concerning the case. 
(2) In addition to the grounds speci fied in subsection (1) of this section, the Director General of the 
Competition Board and his or her deputy have the ri ght to make a decision to initiate proceedings 
concerning a case on their own initiative. (3) Proceedings shall not be initiated and initiated proceedings shall be terminated if it becomes 
evident that: 
1) conduct of the proceedings concerning the case does not fall within the competence of the 
Competition Board; 2) there are no indications of a violation of this Act; 3) the person has been previously  punished for the same violation, regardless of whether the 
punishment was imposed in the Republic of Estonia or in any other state; 4) an action concerning the same matter has been file d with a court or criminal proceedings have been 
commenced with regard to the matter; 
5) a decision of the Director General of the Competition Board or his or her deputy concerning the same matter or a court judgment made on the basis of the same circumstances has entered into force; 
6) the natural person or legal person concerning  whom proceedings have been or are to be 
commenced has died or  has been dissolved. 
(4) A decision of the Director General of the Competition Board or his or her deputy on the initiation 
of proceedings concerning a case on the basis of clause (1) 1) of this section shall set out: 
1) the date and number of the decision; 2) the name of the person who submitted the app eal or petition, except in the case provided for in 
subsection 64 (3) of this Act; 3) the grounds for making the decision together with a reference to the relevant provision of this Act; 
4) the name of the person making the decision. 
(5) A decision of the Director General of the Competition Board or his or her deputy on the initiation of proceedings concerning a case on the basis of  subsection (2) of this section shall set out: 
1) the date and number of the decision; 2) the grounds for making the decision together with a reference to the relevant provision of this Act; 
3) the name of the person making the decision. 
(6) A decision of the Director General of the Competition Board or his or her deputy concerning refusal to initiate proceedings w ith regard to a case shall set out: 
1) the date and number of the decision; 2) the name of the appellant, except in the case provided for in subsection 64 (3) of this Act; 3) a summary of the content of the appeal; 
4) the grounds for making the decision together with a reference to the relevant provision of this Act; 
5) the reasons for the decision; 6) the name of the person making the decision. § 66. Participants in proceedings (1) The participants in proceedings concerning a case are: 
1) the appellant; 
2) the subject of the proceedings; 3) interested third parties. (2) The subject of the proceedings is the person who is alleged to have comm itted a violation of this 
Act. If the alleged violation has been committed by an association of persons, the members of the  IP/N/1/EST/O/2 
 Page 23 
 
 
 association are also deemed to be subjects of th e same proceedings. Interested third parties are 
persons whose rights and obligations are affected by the case. § 67. Rights of participants in proceedings concerning case (1) Participants in proceedings and their representa tives have the right to present their opinions and 
submit evidence and requests concerning the case. 
(2) The subject of proceedings has the right to demand  one oral hearing of the case to be conducted by 
the Director General of the Competition Board or his or her deputy. (3) An appellant has the right to request non-disclos ure of the identity of the person in the course of 
the proceedings. (4) After the Competition Board has received all the information, the subject of the proceedings, the 
appellant and their representatives ha ve the right to examine all materials collected on the case, except 
business secrets of other undertakings, internal doc uments of the Competition Board and information 
concerning the appellant if the name of the appellant has been declared to be not subject to disclosure 
on the basis of clause 64 (3) of this Act. § 68. Oral hearings of cases 
(1) If necessary, an oral hearing of a case may be he ld at a time and place specified by the Director 
General of the Competition Board or his or her deputy,  and the persons to be heard shall be notified of 
the hearing in writing not less than ten calendar days  before the hearing. On the basis of a reasoned 
written request of a person summoned to a hearing, the Director General of the Competition Board or 
his or her deputy may change the term or the place of the hearing. (2) The participants in the proceedings, their re presentatives, officials of the Competition Board, 
representatives of the Competition Board and persons summoned on the agreement of the participants 
in the proceedings and the Competition Board may pa rticipate in an oral hearing of a case. Oral 
hearings of different participants in the proceedi ngs may be held in different places and at different 
times. (3) The Competition Board has the right to make sound  or video recordings of an oral hearing, in 
which case the persons participating in the h earing shall be given prior notice thereof. 
(4) A summary shall be prepared concerning an or al hearing of a case and the summary shall set out: 
1) the time and place of preparation of the summary; 2) the name and position of the pers ons participating in the oral hearing or, in the case of a legal 
person, the name of the legal person and the name  and position of the representative or employee of 
the legal person; 
3) a description of the course of the oral hearing and the explanations of the person summoned to the 
hearing; 4) a notation concerning the participation of an interpreter or translator if one is involved; 
5) a notation concerning the making of sound or video recordings of the hearing; 6) the notes or absence of notes made by participan ts in the oral hearing concerning the summary or 
the sound or video recordings; 
7) a list of the materials transferred to the Competition Board in the course of the oral hearing. (5) A summary shall be prepared in one copy a nd signed by the officials of the Competition Board 
who participated in the hearing, but all persons w ho participated in the hearing have the right to 
receive a copy of the summary at their request. § 69. Suspension of proceedings concerning case 
(1) The Director General of the Competition Board or  his or her deputy may, by a decision, suspend 
the proceedings concerning a case if: 1) a decision to be made in a pending administrative,  administrative offence, civil or criminal matter 
is essential for the resolution of the case; 2) the obtaining of evidence essential to the resolution of the case is hindered and all other necessary 
acts have been performed. 
(2) The Director General of the Competition Board or his or her deputy may, by a decision, resume the proceedings concerning a case: 1) upon the entry into force of a court or admini strative decision specified in clause (1) 1) of this 
section, IP/N/1/EST/O/2 
Page 24  
 
 2) if the circumstances hindering the evidence specifi ed in clause (1) 2) of this section from being 
obtained cease to exist, or 3) if it becomes evident that the circumstances,  the occurrence or absence of which was to be 
established by the given evidence, can be ascertained in another manner or that such circumstances are irrelevant. 
§ 70. Termination of proceedings concerning case 
(1) Before termination of the proceedings concer ning a case, a written notice shall be sent to the 
subject of the proceedings by which the subject is gr anted a term of not less than ten calendar days to 
examine all the materials collected  in the course of the proceedings , except business secrets of other 
undertakings, internal documents of the Competition Bo ard and the name of the appellant if the name 
has been declared to be not subject to disclosu re on the basis of subsection 64 (3) of this Act. 
(2) A person has the right to submit additional info rmation within twenty calendar days after the 
Competition Board dispatches the notice specified in s ubsection (1) of this section. Upon the expiry of 
this term, the submission of information sh all be deemed to have been completed. 
(3) Proceedings concerning a case shall be terminated w ithin three months after the expiry of the term 
provided for in subsection (2) of this section. 
(4) Except in the cases provided for in subsections (5 ) and (6) of this section, proceedings concerning 
a case shall be terminated by the prepara tion of an administrative offence report. 
(5) Proceedings concerning a case may be terminat ed by a corresponding decision of the Director 
General of the Competition Board or his or her deputy if: 1) the subject of the proceedings is a state agency, local government or the Bank of Estonia, 
2) circumstances provided for in subsection 65 (3) of this Act become evident, 
3) the subject of the proceedings has signifi cantly improved the situation in the goods market, 
4) competition has not been significantly restricted, or 5) the appellant has withdrawn the appeal and the withdrawal does not infringe the rights or freedoms 
of third parties. 
(6) An administrative offence report shall not be prep ared with regard to the person who was the first 
to give notice of an agreement, practice or decision  specified in subsection 4 (1) of this Act if the 
agreement, practice or decision was not initiated by  the person and the person has fully co-operated 
with the Competition Board in th e proceedings concerning the case. 
(7) A decision provided for in subsec tion (5) of this section shall set out: 
1) the date of the decision; 
2) a reference to the decision concerning initiation of the proceedings; 
3) information concerning the subject of the proceedings; 4) a reason for the termination of the proceedings and a reference to the relevant provision of this Act; 
5) proposals and recommendations to the par ticipants in the proceedings, if necessary; 
6) the procedure for appealing against the decision; 
7) the name and position of the person making the decision. 
§ 71. Revocation of decisions The Director General of the Competition Board or hi s or her deputy may revoke his or her decision if 
the decision was based on a legal act which has b een repealed or declared unlawful by a court 
judgment which has entered into force of if new rele vant circumstances have become evident or if the 
documents or other materials on which the deci sion was based were incorrect, incomplete or 
misleading and a different decision would have been  made if the new circumstances or correct and 
complete information had been known or available. § 72. Communication and disclosure of decisions (1) Decisions provided for in subsections 65 (1) and (2), § 69, subsection 70 (5) and § 71 of this Act 
shall be served on the subject of the proceedings or  the appellant or their representatives against a 
signature or sent by post with advice of delivery. 
(2) The Competition Board shall publish a notice con cerning a decision provided for in subsection 70 
(5) or § 71 of this Act in the official publication Ametlikud Teadaanded . 
§ 73. Appeals against decisions  IP/N/1/EST/O/2 
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 A person has the right to file an appeal with a cour t against a decision of the Director General of the 
Competition Board or his or her deputy pursuant to the procedure provided for in the Code of 
Administrative Court Procedure (RT I 1999, 31, 425; 33, correction notice; 40, correction notice; 96, 846; 2000, 51, 321).  Chapter 9 
Liability 
 § 74. Application of liability (1) Upon the imposition of a punishment on a legal pe rson for violation of th is Act or legislation 
established on the basis thereof, the gravity, nature and other circumstances of the violation, the extent 
to which the offender co-operates with the Compe tition Board and any termination of the prohibited 
activity before the imposition of the punishme nt shall be taken into consideration. 
(2) A punishment shall not be imposed on a legal pers on if more than three years have passed since 
the commission of the violation, the termination of performance of an agreement or the expiry of the 
term of validity of the agreement. 
§ 75. Liability of legal person for administrative offence (1) A fine of 500 to 50 000 kroons shall be imposed for submission of incorrect, incomplete or misleading information to the Minister of Finance. (2) A fine of 500 to 50 000 kroons shall be imposed for misuse of state aid. (3) A fine in the amount of up to 1 per cent of the turnover of the offender during the financial year 
preceding the decision to impose the fine shall be imposed for submission of incorrect, incomplete or 
misleading information to the Competition Board. (4) A fine in the amount of up to 10 per cent of th e turnover of the offender during the financial year 
preceding the decision to impose the fine shall be imposed for abuse of a dominant position. 
(5) A fine in the amount of up to 10 per cent of th e turnover of the offender during the financial year 
preceding the decision to impose the fine shall be  imposed for violation of a prohibition on an 
agreement, practice or decision restricting competition,  for entry into an agreement, engagement in a 
practice or the making of a decision requiring an exemption without obtaining such exemption, and for violation of the conditions of an exemption. (6) A fine in the amount of up to 10 per cent of th e turnover of the offender during the financial year 
preceding the decision to impose the fine shall be impo sed for failure to give notice of a concentration 
within the specified term and for violation of a prohibition on concentration or the conditions of 
permission to concentrate. (7) A fine in the amount of up to 1 per cent of the turnover of the offender during the financial year preceding the decision to impose the fine shall be im posed on a legal person with special or exclusive 
rights or in control of essential facilities which fails  to draw a clear distinction between primary and 
secondary activities in its accounts. 
(8) For the purposes of this section, turnover is th e net realised turnover of an undertaking or the 
turnover of a credit or financial institution calculated pursuant to subsection 23 (2) of this Act, or the 
turnover of an insurer calculated pursuant to subsecti on 23 (3) of this Act, or, in the absence of such 
indicators, the income of the legal person after the deduction of value adde d tax and income tax. 
(9) If an offender did not effect any turnover speci fied in subsection (8) of this section during the 
financial year preceding the decision to impose a fi ne, the actual turnover effected by the person 
during the year in which the fine is imposed and until the administrative offence report is prepared 
shall be considered as the turnover of the offender. § 76. Preparation of administrative offence reports (1) An undertaking shall be summoned to the prepar ation of an administrative offence report by a 
written summons pursuant to § 58 of this Act. The summons shall set out the administrative offence 
concerning which the report is to be prepared. (2) Officials authorised by the Minister of Finan ce have the right to prepare reports concerning the 
administrative offences provided for in s ubsection 75 (1) and (2) of this Act. IP/N/1/EST/O/2 
Page 26  
 
 (3) The Director General of the Competition Board and his or her deputy and officials of the 
Competition Board authorised by the Director Genera l or his or her deputy have the right to prepare 
reports concerning the administrative offences provide d for in subsections 75 (3)–(7) of this Act. 
(4) A report specified in subsection (2) or (3) of this section shall set out: 1) the time and place of preparation; 
2) the name and address of the agency the representative of which prepared the report; 
3) the official title, given name and surn ame of the person who prepared the report; 
4) the name or business name, registration number and seat of the administrative offender; 5) the given name, surname and position of the representative of the administrative offender; 
6) the place, time and description of the administrative offence; 
7) a reference to the provisions of this Act wh ich are the basis for imposition of administrative 
liability; 8) an explanation provided by the representativ e of the administrative offender or a notation 
concerning refusal to provide an explanation; 9) a notation indicating that the representative of th e administrative offender has been informed of his 
or her right to obtain legal aid. 
(5) The person who prepares a report and the administra tive offender or his or her representative shall 
sign the report. If the administrative offender or his or her representative refuses to sign the report, a 
corresponding entry shall be made therein. Writte n notes made by the administrative offender or his 
or her representative concerning the report or his or her refusal to sign the report, and the reasons for 
such refusal shall be annexed to the report. 
(6) A report shall be submitted for hearing by a court within ten calendar days as of the preparation of 
the report. § 77. Proceedings in matters concerning administrative offences Proceedings in matters concerning administrative o ffences by legal persons provided for in this Act 
shall be conducted pursuant to the procedure provided by this Act and, in cases not directly regulated 
by this Act, pursuant to the procedure provided fo r in the Code of Administrative Offences (RT 1992, 
29, 396; RT I 1999, 41, 496; 45, correction notice; 58, 608; 60, 616; 87, 792; 92, 825; 95, 843; 2000, 10, 58; 25, 141; 28, 167; 29, 169; 40, 247; 49 , 301 and 305; 51, 321; 54, 346, 348 and 351; 55, 361; 
58, 376; 84, 533; 86, 544 and 548; 89, 578; 95, 609 and 613; 2001, 3, 5; 17, 76; 18, 87; 21, 115 and 116; 31, 174; 42, 236) and the Code of Enforcem ent Procedure (RT I 1993, 49, 693; 2001, 29, 156; 
43, 238). 
§ 78. Compensation for damage 
Proprietary or other damage caused by acts prohibited by this Act shall be subject to compensation by 
way of civil procedure.  
Chapter 10 
Implementing Provisions 
 § 79. Amendment of Criminal Code Sections 148
16–14819 are added to the Criminal Code (RT 1992, 20, 288; RT I 1999, 38, 485; 57, 595, 
597 and 598; 60, 616; 97, 859; 102, 907; 2000, 10, 55; 28, 167; 29, 173; 33, 193; 40, 247; 49, 301 and 
305; 54, 351; 57, 373; 58, 376; 84, 533; 92, 597; 104, 685; 2001, 21, 115 and 116; 31, 174) in the 
following wording: 
“§ 14816. Abuse of dominant position 
A member of the management board, of a body su bstituting for the management board or of the 
supervisory board of a legal person who establis hes unfair trading conditions, limits production, 
services, the market, technical development or i nvestment to the prejudice of consumers or who 
engages in other activities causing a direct or indir ect abuse of a dominant position shall be punished 
by a fine or up to three years’ imprisonment. § 148
17. Agreements, practices or decisions restricting competition 
A member of the management board, of a body su bstituting for the management board or of the 
supervisory board of a legal person who violates a prohibition on an agreement, practice or decision  IP/N/1/EST/O/2 
 Page 27 
 
 
 restricting competition or who enters into an agre ement, engages in practices or makes a decision 
requiring an exemption without obtaining such ex emption or who violates the conditions of an 
exemption shall be punished by a fine or up to three years’ imprisonment. § 148
18. Failure to perform obligatio ns relating to concentration 
A member of the management board, of a body substituting for the management board or of a 
supervisory board of a legal person who fails to gi ve notice of a concentration within the specified 
term or who violates a prohibition on concentration or the conditions of permission to concentrate 
shall be punished by a fine or up to three years’ imprisonment. § 148
19. Failure to draw clear distinction between  primary and secondary activities in accounts of 
legal person with special or exclusive rights or in control of essential facilities 
A member of the management board, of a body substituting for the management board or of a 
supervisory board of a legal person with special or exclusive rights or in control of essential facilities 
who engages in activities resulting in failure to draw a clear distinction between primary and 
secondary activities in the accounts of the legal pers on shall be punished by a fine or up to three 
years’ imprisonment.” 
§ 80. Amendment of Price Act 
Sections 9 and 10 of the Republic of Estonia Price Act (ENSV ÜVT3 1989, 39, 610; RT 1992, 30, 
400; RT I 1996, 49, 953; 1997, 52, 833; 1998, 60, 951) are repealed. § 81. Amendment of Geographical  Indications Protection Act 
Clause 49 1) of the Geographical Indications Pr otection Act (RT I 1999, 102, 907; 2000, 40, 252; 
2001, 27, 151) is repealed. 
§ 82. Amendment of Trade Marks Act 
Clause 36
4 (1) 1) of the Trade Marks Act (RT 1992, 35, 459; RT I 1998, 15, 231; 1999, 93, 834; 102, 
907; 2001, 27, 151) is repealed. § 83. Amendment of State Fees Act The State Fees Act (RT I 1997, 80, 1344; 2000, 5, 32;  10, 58; 19, 117; 26, 150; 29, 168 and 169; 39, 
237; 49, 300; 54, 346 and 349; 55, 365; 57, 372 and 373;  59, 379; 60, correction notice; 78, 498; 84, 
534; 92, 597 and 598; 95, 607 and 611; 2001, 2, 2; 3, 4; 16, 69 and 72; 27, 151; 31, 171; 34, 188 and 189; 36, 201; 42, 235; 43, 238 and 239; 47, 26 0; 48, 268; 50, 284) is amended as follows: 
1) clause 20
1 is added to subsection 3 (2) worded as follows: 
“201) acts performed by the Competition Board;”; 
2) Division 131 is added to Chapter 7 of the Act worded as follows: 
“Division 131 
Acts of Competition Board 
§ 14720. Proceedings concerning concentration 
A state fee of 20 000 kroons shall be paid for proceedings concerning a concentration. 
§ 14721. Proceedings concerning application for exemption 
A state fee of 10 000 kroons shall be paid for pr oceedings concerning an application for exemption.” 
§ 84. Amendment of Consumer Protection Act Clause 11 (2) 1
1) of the Consumer Protection Act (RT I 1994, 2, 13; 1999, 35, 450; 102, 907; 2000, 
40, 252; 59, 379; 2001, 50, 283 and 289) is repealed. § 85. Amendment of Commercial Code The Commercial Code (RT I 1995, 26–28, 355; 1998, 91–93, 1500; 1999, 10, 155; 23, 355; 24, 360; 
57, 596; 102, 907; 2000, 29, 172; 49, 303; 55, 365; 57, 373; 2001, 34, 185) is amended as follows: 
1) subsection 393 (2) is amended and worded as follows: “(2) A merger report need not be prepared if all the shares of the company being acquired are held by 
the acquiring company, or if this is agreed to by  all the partners or shareholders of the merging 
company, unless the aggregate worldwide realised net turnover of the merging companies during the 
previous financial year exceeded 500 million kroons  and the aggregate worldwide realised net 
turnover of each of at least two of the merging companies exceeded 100 million kroons or if the business activities of at least one of the merging undertakings are carried out in Estonia.”; 
2) clause 400 (1) 9) is amended and worded as follows: IP/N/1/EST/O/2 
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 “9) a decision of the Director General of the Competition Board or his or her deputy concerning the 
grant of permission to concentrate, if the aggreg ate worldwide realised net turnover of the merging 
companies during the previous financial year  exceeded 500 million kroons and the aggregate 
worldwide turnover of each of at least two of the merging companies exceeded 100 million kroons 
and if the business activities of at least one of the merging undertakings are carried out in Estonia, 
except in cases of mergers within groups.” 
§ 86. Amendment of Rural Muni cipality and City Budgets Act 
Subsection 11 (3) of the Rural Municipality and City  Budgets Act (RT I 1993, 42, 615; 1995, 17, 234; 
1997, 40, 619; 2000, 7, 40) is amended and worded as follows: “(3) Before a draft budget is presented to the counc il, the government shall submit an application for 
permission to grant state aid concerning the state ai d prescribed in the draft budget to the Minister of 
Finance pursuant to the Competition Act.” § 87. Implementation of Act (1) This Act applies to all agreements, concerted practices and decisions which restrict competition 
and are in force at the moment of the entry into fo rce of this Act and which are carried out thereafter. 
(2) Proceedings initiated before the entry into force of this Act shall be conducted pursuant to the Act 
in force at the time of initiation of  the proceedings concerning the case. 
(3) Permission granted in any form or pursuant to any procedure to an undertaking by the state or a 
local government before 1 October 1998 which en ables the undertaking to have a competitive 
advantage over other undertakings in a goods market or to be the only undertaking in the market shall 
also be deemed to be a special or exclusive right. 
(4) The Government of the Republic and its minist ers shall bring the regulations passed on the basis 
of the Competition Act (RT I 1998, 30, 410; 1999, 89, 813; 2000, 53, 343; RT III 2000, 21, 232) into conformity with this Act within three months  after the entry into force of this Act. 
§ 88. Proceedings concerning existing state aid (1) Existing state aid is taken to mean aid schemes and individual state aid the grant of which 
commenced between 1 January 1995 and the entry into force of this Act and continued after the entry 
into force of this Act, state aid for the grant of which permission has been granted by the Minister of 
Finance or the Government of the Republic, and state aid which is deemed to be permitted pursuant to 
subsection 36 (3) of this Act. (2) Existing state aid shall be assessed in accordan ce with the general requirements provided for in 
this Act and pursuant to the special requirements es tablished on the basis of subsection 31 (6) of this 
Act. 
(3) If the Minister of Finance finds that existing state aid is not or is no longer compatible with the public interest, he or she shall notify the grantor of the state aid in writing of his or her preliminary view and give the grantor the opportunity to subm it its comments within one month. In duly justified 
cases, the Minister of Finance may extend the term. 
(4) If the Minister of Finance, on the basis of the comments submitted by a grantor of state aid 
pursuant to subsection (3) of this section, makes a decision that the existing state aid is compatible 
with the public interest, the Minister of Finance sh all notify the grantor of state aid of the decision. 
(5) If the Minister of Finance, on the basis of the comments submitted by a grantor of state aid pursuant to subsection (3) of this section, makes a decision that the existing state aid is not compatible with the public interest, the Minister of Finance h as the right to request substantive amendment of the 
aid scheme and submission of a new application for permission within a specified term or termination 
of the grant of the state aid within a specified term. (6) Proceedings concerning applications for permis sion to grant state aid submitted on the basis of 
subsection (5) of this section shall be co nducted pursuant to § 36 of this Act. 
(7) If a grantor of state aid fails to comply with the requirements set by the Minister of Finance 
pursuant to subsection (5) of this section within th e specified term, the state aid granted after the 
expiry of the term is deemed to be unlawful state aid and the Minister of Finance has the right to initiate proceedings pursuant to § 42 of this Act. § 89. Repeal of Act  IP/N/1/EST/O/2 
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 The Competition Act (RT I 1998, 30, 410; 1999, 89, 813; 2000, 53, 343; RT III 2000, 21, 232) is 
repealed as of the entry in to force of this Act. 
§ 90. Entry into force of Act This Act enters into force on 1 October 2001. 
1 RT = Riigi Teataja = State Gazette 
2 Ametlikud Teadaanded = Official Notices 
3 ENSV ÜVT = ENSV Ülemnõukogu ja Valitsuse Teataja = ESSR Supreme Council and Government 
Gazette  
 
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