WORLD TRADE ORGANIZATION 
ORGANlSATION MONDIALE DU COMMERCE 
ORGANIZACIÓN MUNDIAL DEL COMERCIO 
Council Cor Trade-Related Aspects oC 
IntelIectual Property Rights IPIN/l/EST/O/l 
11 September 2000 
(00-3516) 
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 textl of the Competition Act, as notified by Estonia 
under Artiele 63.2 ofthe Agreement (see document IP/NIl/EST/l). 
Conseil des aspects des droits de propriété 
intelIectuelIe qui touchent au commerce 
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES Á LA 
PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE 
DE L'ARTICLE 63:2 DE L'ACCORD 
ESTONIE 
Le présent document contient le textel de la Loi sur la concurrence, notifiée par l'Estonie au 
titre de l'article 63:2 de l'Accord (voir le document IP/NIl/EST/l). 
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 textol de la Ley sobre la Competencia, notificado 
por Estonia en virtud del párrafo 2 del artículo 63 del Acuerdo (véase el documento IP/NIl/EST/I). 
1 In English only. The text in the original language is available for consultation by interested 
Delegations at the WTO Secretariat.lEn anglais seulement. Les délégations intéressées peuvent consulter le 
texte dans sa langue d'origine, au Secrétariat de rOMC.lEn inglés solamente. Las delegaciones interesadas 
podrán consultar en la Secretaría de la OMC el texto en su idioma original. IP/N/l/EST/O/l 
Page2 
Chapter 1 
General Provisions 
§ 1. Purpose of Act COMPETITION ACT 
(I) The purpose of this Act is to safeguard free competition upon the extraction of natural resources, 
manufacture of goods, provision of services, sale and purchase of products and services 
(hereinafter goods), and to prevent and eliminate the restriction of competition in other economic 
activities based on the interests offree enterprise. 
(2) This Act also applies if the action or omission directed at restricting competition takes place 
outside the territory of Estonia but restricts competition in the territory of Estonia. 
§ 2. Subjects of Act 
(1) The subjects of this Act are undertakings. The provisions applicable to undertakings pursuant to 
this Act also extend to non-profit associations, foundations and other persons who participate in a 
market or act in the interests of undertakings. 
(2) The provisions of this Act extend to state agencies and local government agencies if the decisions 
or activities of such agenc ies restrict competition. 
(3) For the purposes ofthis Act, undertakings which belong to the same group of companies or other 
undertakings which are connected through control are deemed to be one undertaking. 
(4) For the purposes ofthis Act, the foIlowing are deemed to be control over another undertaking: 
1) control of a parent company over a subsidiary; 
2) a situation where an undertaking has the right to appoint or remove a majority of the members 
of the directing bodies of another undertaking; or 
3) a situation where an undertaking, by an agreement and together with sorne of its stockholders 
or shareholders, has a majority of votes in another undertaking. 
§ 3. Scope ofapplication of Act 
(1) This Act is applied to safeguard competition bet:ween persons who participate or intend to 
participate in a market. A market is an area in the whole territory of Estonia or a part thereof in 
which goods which are regarded as interchangeable by the buyer by reason of price, quality, 
technical characteristics, conditions of sale or use, consumption or other characteristics are 
circulated. 
(2) The Competition Board has the right to define the market for each specific good. 
Chapter 2 
Prohibition on Agreemcnts and Concerted Practices 
§ 4. Prohibition on agreements and concerted practices which restrict competition 
(I) Contracts, other transactions and agreements (hereinafter agreements) or concerted practices which 
have as their object or effect the restriction, prevention, limitation or distortion of free enterprise 
and competition are prohibited. Such agreements or activities are deemed to restrict competition if 
they directly or indirectly: 
1) fix pricing conditions, including the purchase or seIling prices of goods, tariffs, mark-ups, 
rebates, interest rates, rent or lease payments to be applied to a third person; 
2) limit prodllction, markets, technical development or investment; 
3) share markets, including sources of supply; 
4) restrict access to markets to third persons or attempt to exc111de third persons from markets; 
5) disseminate information which distorts competition; 
6) apply dissimilar conditions to equivalent agreements with third undertakings, thereby placing 
them at a competitive advantage or disadvantage; 
7) make the entry into agreements subject to acceptance by the other parties of supplementary 
obligations which, by their nature or according to commercial usage, have no connection with 
sllch agreements; or 
S) restrict competition in a manner not specified in c1auses 1}-7) ofthis subsection. 
§ 5. Permissibility of agreements and concerted practices 
(1) Agreements or concerted practices are deemed not to restrict, prevent, ¡imit or distort competition 
su eh that free enterprise may be distorted if: 
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(RT /1998.30, -110) IPIN/IIEST/OIl 
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1) the combined significance of the parties entering into an agreement or developing concerted 
practices does not exceed 5 per cent of the turnover of the market influenced by such 
agreement or concerted practices; and 
2) the combined significance of similar agreements entered into by an undertaking with several 
other undertakings or of concerted practices of such parties does not exceed 5 per cent of the 
tumover ofthe market influenced by such agreements or concerted practices. 
(2) The conditions of subsection (1) of this section shall be fulfilled during the entire term of the 
agreement or concerted practices. 
§ 6. Exemptions 
At the request of an undertaking, the Director General of the Competition Board or his or her 
deputy may grant by a decision an exemption in respect of entry into an agreement specified in § 
4 of this Act if su eh agreement: 
1) contributes to improving the supply of services or production or distribution of goods, 
protecting the environment or promoting technical or economic progress; 
2) allows consumers a fair share ofthe resulting benefit; 
3) does not bring about restrictions on third persons which are not indispensable to the attainment 
ofthe objectives specified in c\ause 1) ofthis section, and 
4) does not bring about a substantial restriction of competition in the market. 
§ 7. Block exemptions 
(1) Block exemptions are permission granted by the Government of the Republic on the proposal of 
the Minister of Finance to enter into a certain category of agreement which complies with the 
conditions provided for in § 6 ofthis Act and restricts or may restrict competition. 
(2) A block exemption is established for a specified term and determines: 
1) the name ofthe category ofagreement to which the block exemption applies; 
2) restrictions or conditions which shall not be inc\uded in such agreements; 
3) conditions which must be included in such agreements, and restrictions and conditions which 
may be included in su eh agreements; 
4) other conditions which such agreements shall comply with. 
(3) A block exemption granted on the basis of subsection (1) of this section does not apply to an 
agreement if: 
1) the agreement or a condition thereof is considered an abuse by an undertaking of a dominant 
position within the market, provided for in § 14 ofthis Act; 
2) competition is virtually non-existent in the market influenced by the agreement for a party to 
the agreement or the parties to the agreement jointly. 
§ 8. Invalidity of agreements restricting competition 
Agreements or conditions thereof which have as their object or effect that specified in § 4 of this 
Act and which are not granted an exemption on the basis of § 6 or 7 of this Act are void, except 
agreements or conditions thereofwhich comply with § 5 ofthis Act. 
Chapter 3 
Application for Exemption 
§ 9. Submission ofapplication for exemption 
(1) In order to obtain an exemption provided for in § 6 ofthis Act, an application shall be submitted 
to the Competition Board before entry into an agreement or within six months after entry into an 
agreement which requires an exemption. Such agreement or a condition thereof which restricts 
competition is invalid until the exemption is granted. 
(:n An application for an exemption concerning an agreement which was not contrary to this Act at 
the time of entry into such agreement shall be submitted within three months after circumstances 
due to which the agreement or a condition thereof is contrary to this Act, become evident. Such 
agreement or condition thereof is invalid from the time the circumstances become evident until 
the exemption is granted. 
(3) One party or the parties to the agreement jointly shall submit an application for exemption. 
(3) An applicant for exemption or the other party to the agreement which is the basis of a submitted 
application for exemption may withdraw the application for exemption at any time until the 
exemption is granted, by submission ofa written application. 
Passed on 11 Afarch. enters illtoforce 1 October 1998 
(RT 1 /998. 30. -l/O) IPINII/EST/Oll 
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§ 10. Requirements for application for exemption 
(1) An application for exemption shall be submitted to the Competition Board together with all 
necessary information in accordance with the instructions established by the Minister of Finance, 
whereupon, at the reguest of the Competition Board, explanations shall be given and the originals 
of documents or copies or transcripts thereof shall be submitted for examination, the authenticity 
ofwhich shall be confirmed by the signature ofthe submitter. 
(2) If information contained in an application for exemption or information relating to the application 
is incomplete, incorrect or misleading, the Competition Board shall notify the applicant thereof in 
writing and shall demand submission of aH information and determine a deadline for submission 
thereof. In such case, the terms provided for in § 11 ofthis Act shall commence from the date the 
Competition Board sends a written notice to the applicant confirming receipt of al! information. 
(3) The person for whose benefit an exemption is granted and the person who appl ies for the decision 
to grant an exemption shal! notify the Competition Board of substantial changes in the 
information presented in the application for exemption within seven calendar days after receipt of 
the relevant information. 
(4) An applicant for exemption shall designate information he or she deems to be a business secret or 
shal! submit such information separately as an annex. Information subject to public disclosure is 
not a business secret. 
§ 1 l. Processing of application for exemption 
(1) The Director General of the Competition Board or his or her deputy shall make one of the 
following decisions concerning an application for exemption: 
1) to grant the exemption if he or she finds that the agreement which is the basis of the application 
complies with the conditions provided for in § 6 ofthis Act; 
2) to refuse the exemption if he or she finds that the agreement which is the basis of the application 
does not comply with the conditions provided for in § 6 ofthis Act; 
3) to in itiate supplementary proceedings concerning the application for exemption if he or she finds 
that it is doubtful whether the agreement which is the basis for the grant of exemption pursuant to 
§ 6 of this Act qualifies for an exemption and it is necessary to obtain additional information or 
conduct a supplementary examination in order to decide to grant or refuse the exemption; 
4) to declare that the agreement does not require an exemption if he or she finds that the agreement 
is not an agreement provided for in § 4 ofthis Act; 
5) to terminate the proceedings without granting an exemption if the agreement does not require an 
exemption on the bases provided for in § 5 ofthis Act or if a block exemption has been granted to 
the category of agreement, the application for exemption is withdrawn, or the applicant for 
exemption or the other party to the agreement has not submitted all necessary information by the 
deadline specified therefor by the Competition Board for a second time. 
(2) The Director General of the Competition Board or his or her deputy shall make one of the 
decisions provided for in c1auses (1) 1) or 2) of this section \\ithin two months after submission of 
all information. 
(3) If the Director General of the Competition Board or his or her deputy decides to commence 
supplementary proceedings on the basis of c1ause (1) 3) of this section, he or she shall notify the 
applicant for exemption in writing and make a final decision to grant or refuse the exemption or 
declare that the agreement does not require an exemption within six months after the submission 
of complete information. 
(4) The Competition Board may extend the deadlines provided for in subsections (2) and (3) of this 
section only with the written consent ofthe applicant for exemption. 
§ 12. Decision to grant exemption 
(1) A decision specified in subsection 11 (1) of this Act shall be in writing and contain justification 
for the decision. 
(2) A decision to grant an exemption may contain conditions or obligations for the parties to the 
agreement the fulfilment ofwhich is mandatory for the exemption to be valid. 
(3) The Director General of the Competition Board or his or her deputy may grant an exemption for 
up to five years, whereupon the term of the exemption may be extended by a decision to grant an 
exemption upon expiry ofthe specified termo 
(4) A party or the parties to an agreement to whom an exemption is granted shall submit an 
application for extension of the exemption at least six months before expiry of the exemption 
specified in the decision. 
Passed an 11 Mm'ch, enlers in/afarce 1 Oc/abe,. 1998 
(RT 1 1998. 30, .:/10) IPIN/IIEST/O/1 
Page 5 
(5) The Director General of the Competition Board or his or her deputy may revoke or amend a 
decision to grant an exemption if: 
1) substantial changes take place in the information or conditions which are the basis ofthe decision; 
2) a party or parties to the agreement violate the obligations or conditions imposed on them by the 
decision; or 
3) the decision is based on incomplete, incorrect or misleading information. 
(6) All decisions made pursuant to clause II (1) 1) of this Act and subsection (5) of this section are 
published in the Riigi Teatajat. 
Chapter 4 
Undertaking Dominating Market 
§ 13. Definition of undertaking dom inating market 
(1) For the pllrposes of this Act, an llndertaking dominating the market is an undertaking which 
accollnts for at least 40 per cent ofthe tllmover in the market or whose economic position enables 
the llndertaking to operate in the market to an appreciable extent independently of competitors, 
sllppliers and buyers. 
(2) For the purposes of this Act, two or more economically linked undertakings are undertakings 
which jointly dominate a market if they jointly control at least 40 per cent of the tumover in the 
market or whose economic position enables them to operate in the market to an appreciable extent 
independently of competitors, suppliers and buyers. For the purposes of this provision, an 
economic link is, for example: 
1) an agreement between undertakings which gives an appreciable technological or commercial 
advantage to the parties thereto compared to other undertakings in the relevant market; 
2) an undertaking owns sufficient part of the stocks, shares, votes or control over the management 
board of another undertaking (or a combination of such circumstances) which enables the 
undertaking to significantly influence the decisions or economic activities of the other 
undertaking. 
(3) Undertakings with special or exclusive rights or a natural monopoly specified in §§ 15 and 16 of 
this Act are also undertakings dominating the market. 
§ 14. Abuse by undertaking of dominant position in market 
Any direct or indirect abuse by an undertaking of a dominant position within a market, i.e. abuse 
by one undertaking or several undertakings, which jointly have a dominant position in the market 
to restrict competition which directly or indirectly consists in: 
1) imposing unfair pricing conditions or other unfair trading conditions, including the unjustified 
sale of goods below the cost price which prejudices the activities of another undertaking in the 
market or excludes another undertaking from the market; 
2) limiting production, services, markets, technical development or investments to the prejudice of 
consumers; 
3) applying dissimilar conditions upon entry into equivalent agreements \vith other undertakings, 
thereby placing some ofthem at a competitive advantage or disadvantage; 
4) upon entry into agreements making one agreement conditional on another agreement that is 
unrelated to the first agreement, into which the other party would not enter voluntarily; 
5) forcing an undertaking to merge with the undertaking or another undertaking or to enter into an 
agreement or concerted practices; 
6) unjustified refusal to sell goods to another undertaking; 
7) unequal treatment ofundertakings which participate in sales offers or purchase bids; or 
8) restricting competition in a manner not specified in clauses 1}-7) ofthis section, 
is prohibited. 
Chapter 5 
Undertaking with Special or Exclusive Rights or Natural Monopoly 
§ 15. Undertaking with special or exclusive rights 
(1) For the purposes of this Act, special or exclusive rights are permission granted to an undertaking 
by the state or a local govemment which enables the undertaking to have a competitive advantage 
in the market over other undertakings or to be the only undertaking in the market. 
(2) State agencies and local governments have the right to grant special or exclusive rights to 
undertakings pursuant to legislation. 
Passed 011 II Afarch, enters inloforce I Oclober 1998 
(RT 11998, 30, 410) IPlNll/EST/O/l 
Page 6 
(3) l f legislation on the basis of which special or exclusive rights are granted does not provide the 
procedure for the grant of special or exclusive rights, a public competition for the grant of su eh 
rights shall be arranged pursuant to the procedure established by the Govemment ofthe Republic. 
§ 16. Definition of natural monopoly 
An undertaking has a natural monopoly if it owns, possesses or operates a network or 
infrastructure which other persons cannot duplicate or for whom it is economically inexpedient to 
duplicate and which gives the undertaking a dominant position in the market. 
§ 17. Restrictions to activities ofundertakings with special or exclusive rights or natural monopoly 
(1) The state agency or local govemment which grants special or exclusive rights to an undertaking 
may establish the procedure for regulation of prices or the prices to be used or impose other 
conditions or obligations on the undertaking so that the buyers of goods of such undertaking or 
sellers of goods to such lIndertaking are not placed in a substantially \Vorse situation than they 
wou Id be in if competition were present in that area of activity. 
(2) State agencies and local govemments determined by a specific Act or, in the absence of a specific 
Act, the Govemment of the Republic and local govemments may establish the procedure for 
regulation of prices or the prices to be used or impose other conditions or obligations on an 
undertaking which has a natural monopoly so that the buyers of goods of such undertaking or 
sellers of goods to such undertaking are not placed in a substantially \Vorse situation than they 
would be in if competition were present in that area of activity. 
§ 18. Obligations of undertakings with special or exclusive rights or natural monopoly 
(1) An llndertaking with special or exclusive rights or a natural monopoly shall: 
1) permit access to the network or infrastructure by other undertakings under reasonable and non­
discriminatory conditions for the purpose of provision or sale of services; 
2) draw a c1ear distinction in accounting between primary and secondary activities (for example 
production, transportation, marketing and other activities of the undertaking) thereby ensuring 
the transparency of accounting, and disclose all expenses to consumers and their 
representatives; 
3) purchase things and order construction work and services necessary for the exercise of special 
or exclusive rights or a natural monopoly pursuant to the procedure provided for in the Public 
Procurement Act (RT 11995,54,883; 1997,9,79). 
(2) An undertaking with special or exclusive rights or a natural monopoly may refuse access to the 
lIndertaking's network or infrastructure to other undertakings if the refusal is based on the 
following objective reasons: 
1) the safety and security of the equipment connected with the net:work or infrastructure or the 
efficiency and security of the operation of such network or infrastructure are endangered; 
2) maintenance of the integrity of the network or infrastructure or inter-operability of services is 
endangered; 
3) equipment to be connected to the network or infrastructure is not in conformity with 
established technical standards or rules; 
4) the llndertaking applying for access lacks the technical and financial capabilities and resources 
to efficiently and safely, to the necessary extent, provide services through or with the 
assistance of the network or infrastructure; or 
5) as a result of access, data protection provided by law is not ensured: 
Chapter 6 
State Aid 
§ 19. Definition ofstate aid 
(1) For the pllrposes of this Act, state aid is a financial advantage granted by the state, a city or rural 
l1111nicipality or through their resources which distorts or threatens to distort competition by 
favouring certain undertakings or the production or sale of certain goods, inc1uding financial aid, 
postponement of payment of tax arrears, debt write-offs and the grant of loans llnder essentially 
more favourable terms than usually given to other undertakings. 
(2) For the purposes of this Act, state aid, except export aid, is of minor importance if it does not 
exceed 1.5 million kroons per undertaking over three subsequent years. 
§ 20. Conditions for grant of state aid 
Passed on II Afarch, enters intoforce 1 October 1998 
(RT 1 1998. 30, 410) IPIN/l/EST/Oll 
Page 7 
(1) In addition to state aid of minor importance, only the following types of state aid may be granted: 
1) state aid having a social character provided that such aid is granted without discrimination 
related to the origin ofthe products concemed; 
2) state aid to make good the damage caused by natural disasters or other exceptional 
occurrences; 
3) state aid to promote the economic development of areas where the standard of living is 
abnormally low or where there is serious unemployment; 
4) state aid to facilitate the development of certain economic areas where such aid does not 
adversely affect trading conditions to an extent contrary to the common interest; 
5) to remedy a serious disturbance in the economy; or 
6) to promote culture and heritage conservation. 
(2) State aid specified in subsection (1) ofthis section: 
1) shall be granted for a specified period of time and shall be terminated when it no longer 
complies with the relevant criterion specified in subsection (1) of this section; 
2) shall be granted to the extent needed to achieve an objective specified in subsection (1) ofthis 
section. 
(3) The Govemment of the Republic establishes the procedure for the grant, notification and 
repayment of state aid. 
§ 21. Grant of state aid 
(1) State aid, except state aid set out in a state, city or rural municipality budget, state aid provided by 
other Acts and state aid of minor importance, may be granted only with the prior written 
permission ofthe Minister of Finance which is published in the Riigi Tea/aja. 
(2) An application for permission to grant state aid specified in subsection (I) ofthis section shall be 
submitted to the Minister of Finance with the necessary information pursuant to the instructions 
establ ished by the Minister of Finance. 
(3) If the information submitted in an application is incomplete or contains incorrect or misleading 
information, the Minister of Finance shall notify the applicant thereof in writing, demand 
submission of aII information and determine a deadline for submission thereof. In such case, the 
terms provided for in subsections 23 (2) and (3) of this Act commence from the date that all 
information is submitted to the Minister of Finance. 
(4) A rural municipality or city government shall notify the Minister of Finance of state aid set out in 
the draft budget ofthe rural municipality or city, except state aid ofminor importance, before the 
draft budget is presented to the council. 
§ 22. Duties of Minister of Finance and city and rural municipality govemments 
(1) The Minister of Finance shaII apply uniform and impartial treatment to all undertakings in the 
market and their goods taking into account all circumstances upon making decisions conceming 
state aid regardless of whether the grant of state aid is allowed or not on the basis of § § 20 and 21 
ofthis Act. 
(2) The Minister of Finance shall apply all the criteria specified in § 20 of this Act in alI his or her 
decisions conceming permission to grant state aid. 
(3) Rural municipality and city govemments are prohibited to prescribe state aid which does not 
comply with § 20 ofthis Act in a draft budget. 
(4) The Minister of Finance monitors the grant and use of state aid set out in city and rural 
municipality budgets, except state aid of minor importance, and shalI, if necessary, make a 
proposal to employ measures to ensure the compliance of state aid with § 20 of this Act. 
§ 23. Permission to grant state aid 
(1) The M inister of Finance shaII make one of the following decisions conceming an application for 
state aid: 
1) to grant permission if he or she finds that the application complies \Vith the provisions of § 20 
ofthis Act; 
2) to refuse permission if he or she finds that the application do es not comply with the provisions 
of § 20 of this Act; 
3) to initiate supplementary proceedings conceming the application for state aid ifhe or she finds 
that it is doubtful whether the agreement which is the basis for the grant of permission 
pursuant to § 20 of this Act qualifies for state aid, and it is necessary to obtain additional 
information in order to decide to grant or refuse permission. 
(2) The Minister of Finance shaII make a decision concerning an application for the grant of state aid 
within two months after submission of aH necessary information. 
Passed on 11 Alarch, en/ers in/o force 1 Oc/ober 1998 
(RT / /998. 3D, -1m) IPIN/l/EST/O/l 
Page 8 
(3) Ifthe Minister of Finance decides to commence further proceedings conceming an application for 
the grant of state aid, he or she shall notify the applicant thereof in writing and make a final 
decision conceming the grant of state aid within six months after receipt of aIl information. 
(4) In conducting further proceedings on the basis of subsection (3) of this section, the Minister of 
Finance shaIl take into account alI written and oral explanations given by the planned beneficiary 
of state aid and other parties with a legitimate interest in the matter. 
(5) If the Minister of Finance does not make a decision within the term provided for in this section, 
perm ission forthe grant of state aid is deemed to be granted. 
(6) A decision to grant state aid may contain conditions and obligations for the beneficiary of state 
aid the fultilment ofwhich is mandato!)' upon the use ofstate aid. 
(7) The Minister of Finance may revoke or amend his or her permission to grant state aid if: 
1) sllbstantial changes take place in the information which is the basis ofsuch permission; 
2) an undertaking violates the conditions or obligations imposed on it; or 
3) the permission is based on incomplete, incorrect or misleading information. 
§ 24. Repayment of state aid 
(1) The Minister of Finance may require the repayment of state aid or the revocation of permission to 
grant state aid or make a corresponding proposal if: 
1) the M in ister of Finance is not notified of the state aid pursuant to subsection 21 (4) of this Act; 
2) state aid is llsed for purposes other than the use or purpose set out in the information 
concerning the state aid; 
3) a condition or obligation established pursuant to subsection 23 (6) of this Act is not fulfilled; 
or 
4) the decision to grant state aid is based on incomplete, incorrect or misleading information. 
(2) The Minister ofFinance has the right to demand a justitied interest rate on the amount of repaid 
state aid in al! cases where state aid is repaid pursuant to subsection (1) of this section. 
§ 25. Reporting on state aid 
(1) Grantors of state aid, that is distributors, payers, guarantors of loans, tax administrators, etc., shall 
present a report on the grant and use of state aid once a year by the date and in the form 
established by the Minister of Finance, inc1uding state aid contained in the state, city and rural 
municipality budgets and other state aid granted pursuant to an Act and state aid of minor 
importan ce. 
(2) The Minister of Finance shalI prepare a report within twelve months after the end of a calendar 
year on aH state aid granted during that year of which he or she has been notified pursuant to the 
provisions ofthis Chapter. 
Chapter 7 
Merger Control 
§ 26. Merger 
(1) For the purposes of this Act, a merger is deemed to arise where undertakings merge as defined in 
the Commercial Code (RT 1 1995, 26-28, 355; 1996, 52-54, 993; 1997, 16, 258; 48, 774; 77, 
1313; 1998,2,48; 23, 322) or where an undertaking acquires control over another undertaking by 
some other means. 
§ 27. Merger notice 
(1) The Competition Board shaIl be notified of a merger in advance if: 
1) the aggregate annual turno\"er of the merging parties exceeds 100 miHion kroons; or 
2) the merging parties separately or jointly have control over more than 40 per cent of the 
market. 
(2) A merger notice shall be submitted to the Competition Board together with the merger agreement, 
merger report and merger decision, if these exist, in accordance with the Commercial Code, the 
Non-protit Associations Act (RT 1 1996, 42, 811) or the Foundations Act (RT 1 1995, 92, 1604; 
1996, 42, 811), and other necessary information pursuant to the instructions established by the 
Minister of Finance, whereupon, at the request of the Competition Board, the documents shall be 
submitted as originals or copies certified by the undertaking or its representative. 
(3) If information contained in a merger notice or its annexes is incomplete, incorrect or misleading, 
the Competition Board shall notify the notifying party thereof in writing and shalI demand the 
provision of aH information and determine a deadline for provision thereof. 
Passed 011 // Mm'ch, enters ¡nto force / October /998 
(RT /1998,30, ./10) IPINlllEST/OI1 
Page9 
(4) A merger may not be implemented earlier than within one month after the submission of alI 
information to the Competition Board unless otherwise agreed with the Competition Board in 
writing. 
(5) The notifying party shalI designate information he or she deems to be a business secret or shalI 
submit su eh information separately as an annex. 
Chapter 8 
Unfair Competition 
§ 28. Prohibition on unfair competition 
(1) Unfair competition means any act which restricts free enterprise and is contrary to good morals 
and customs, including: 
1) the publication of misleading information, or presentation or ordering of misleading 
information for publication; 
2) the disparagement of a competitor or a competitor's goods; 
3) the misuse ofconfidential information; 
4) the misuse of an employee or representative of another undertaking: 
5) unfair restriction or promotion ofthe sale ofgoods. 
(2) Unfair competition is prohibited. 
(3) The provisions of the Advertising Act (RT 1 1997, 52, 835) apply to misleading, offensive or 
denigratory information as a method of advertising. 
§ 29. Presentation or ordering of misleading information for publication 
(1) Misleading information means the publication, or presentation or ordering of false information for 
publication either concerning oneself or another undertaking which is a participant in the same 
market or the undertaking's goods which may leave a misleading impression of an offer, given 
ordinary attention by the buyer. 
(2) Information specified in subsection (1) of this section primarily refers to information concerning 
the origin, qualities, method of production, means or sources of supply, price, tariff, discounts, 
prizes awarded, reasons for sale and the amount of stock of the goods offered, as well as 
preferential rights, financial status and other qualities ofthe undertaking. 
(3) Markings concerning the producer, origin or other qualities of goods are also misleading if a 
mark, information, description or a name is used on the goods, its packaging or aecompanying 
documents or elsewhere which may be misleading as regards the place of production, the 
producer or the qualities of the goods, given ordinary attention by the buyer. 
§ 30. Disparagement of competitor or its goods 
Disparagement of a competitor or its goods means the dissemination of false information concerning 
another undertaking or goods sold by another undertaking in the same market which harms or 
mal' harm the reputation or economic activities of the other undertaking. 
§ 31. Misuse of confidential information 
(1) Confidential information means any technical, technological or other business information the 
publication of \vhich is not mandatory, and information concerning commercial negotiations, 
transactions, market research and other cireumstances: 
1) which is disclosed to other persons only on a confidential basis; 
2) the confidentiality of which the undertaking considers necessary for a justified reason; 
3) which is not generaIly available to buyers or potential buyers concerning such undertaking; or 
4) which is not available on the basis of an inquiry by or in the name of an undertaking operating 
in the market.. 
(2) Misuse of confidential information means the use of confidential information of another 
undertaking if such information is obtained unlawfuIly or the use thereof is eontrary to an 
agreement entered into with the other undertaking. 
§ 32. Misuse of employee or representative of another undertaking 
Misuse of an employee or representative of another undertaking means influencing him or her to act in 
the interests of the influencing party or a third person in order to achieve a competitive advantage. 
§ 33. Unfair restriction or promotion of sale of goods 
(1) Unfair restriction ofthe sale of goods means: 
Passed on 11 March, enters intoforce 1 October 1998 
(RT 1 1998, 3(), .¡ f()) IPINIl/EST/OIl 
Page 10 
1) restriction of the amount of goods or services to be sold to a buyer or subjecting such sale to any 
condition unless this is absolutely necessary for using such good or is related to a special offer or 
arises from legislation; or 
2) calling for implementation of a prohibition on sale or purchase against sorne other undertaking 
operating in the same market. 
(2) Unfair promotion of the sale of goods means subjecting the sale thereof to the obligation to 
purchase other goods or to find a new buyer. 
Chapter 9 
State Supervision 
§ 34. State competition supervisory authorities 
(1) The Competition Board supervises the implementation of this Act, except In respect of credit 
institutions, securities brokers and insurance companies. 
(2) State supervision over credit institutions, securities brokers and insurance companies is exercised 
by the state supervision authority in the relevant field whereupon the Competition Board has the 
right to present opinions as recommendations and exercise control over all mergers. 
(3) The rights and obligations of the Competition Board under this Act to exercise state supervision 
over competition also extend to the state supervision authorities specified in subsection (2) of this 
section. 
§ 35. Competen ce ofCompetition 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 analyses the competitive situation, designs measures to promote 
competition, makes recommendations to improve the competitive situation, makes proposals to 
pass or amend legislation and develops co-operation with competition supervisory authorities of 
other states and associations of states. 
§ 36. Right of Competition Board to demand information 
(1) The Competition Board has the right to demand information from undertakings, state agencies, 
local government agencies and natural persons in order to: 
1) monitor the situation of competition and markets; 
2) conduct proceedings concerning agreements and concerted practices; 
3) grant exemptions; 
4) monitor the activities ofundertakings dominating the market; 
5) monitor mergers; 
6) conduct proceedings concerning violations or possible violations ofthis Act; 
7) exercise other supervision over implementation ofthis Act. 
(2) The information specified in subsection (1) of this section shall be demanded in writing with a 
deadline for submission ofnot less than ten calendar days, whereupon the purpose and legal basis 
of the request shall be specified and the sanctions provided for the provision of incomplete, 
incorrect or misleading information or failure to provide information shall be referred to. 
(3) The Competition Board has the right to take oral explanations from the persons specified in 
subsection (I) of this section or their representatives and to prepare a report to be signed by the 
person preparing the report and the person giving the explanations. 
§ 37. Right of Competition Board to demand documentation 
(1) In order to exercise supervision over competition, the Competition Board has the right to demand 
from undertakings, state agencies, local government agencies and natural persons the originals, 
copies or transcripts of the documents, drafts thereof and other materials necessary for exercising 
supervision over competition, the authenticity of which shalI be certified by the signature of the 
person submitting such materials. Upon submission of a copy or transcript, the Competition 
Board has the right to request the original document to check the correctness of the copy or 
transcript. 
(2) At the request of the person who submits the material, the Competition Board shaIl issue a letter 
of confirmation to the person concerning receipt of the material. The person has the right to have 
the originals ofthe docurnents, drafts and other materials submitted by him or her returned by the 
Competition Board after the supervisory proceedings are completed. 
Passed on 11 Mareh, enters in/o force 1 Oc/aber 1998 
(RT 1/998. 3D, 4/0) § 38. r nspectíon of seat of undertakíng or location of activities of undertaking IPINIlIEST/OIl 
Page 11 
(1) An official or representative of the Competitíon Board authorised by a dírective of the Director 
General of the Competitíon Board or his or her deputy has the right, wíthout prior warning or 
speeial perm ission, to inspect the seat or location of the activities, that is, the territory, buildings, 
room s and transport vehicles of the undertaking both during working hours and at any time the 
location of the activities is used in order to establish any violation or possible violation of this 
Act. The seat of an undertaking or the loeation of the activities of an undertaking may also be 
inspected at any other time with the consent of such undertaking. 
(2) At the seat of the undertaking or the location of the activities of an undertaking under inspection, 
the person conducting such inspection shaIl present to the undertaking, its representative or 
employee an extract of the directive issued by the Director General of the Competition Board or 
his or her deputy concerning the commencement of the proceedings and authorisation of the 
person conducting the inspection. 
(3) Upon an inspection provided for in subsection (1) of this section, an official or representative of 
the Competition Board has the foIlowing rights and obligations: 
1) the right to immediately examine documents relating to the activities ofthe undertaking, drafts 
thereof and other materials, and to obtain, at the expense of the person under inspection, 
originals or copies or transcripts thereof, the authenticity of which shall be certified by the 
signatllre ofthe person sllbmitting them; 
2) the right to receive oral explanations from the undertaking, its representatives or employees; 
3) the obligation to prepare a summary of the inspection in two original copies which shall be 
signed by the undertaking under inspection, its representative or employee and of which a 
copy shall be given to the signatory. 
(4) The inspection provided for in sllbsection (1) of this section shall be conducted with the 
knowledge ofthe undertaking, its representative or employee, and they have the right to be present 
at the inspection. 
§ 39. Proceedings of matter 
(1) The Director General of the Competition Board or his or her deputy shall, within ten calendar 
days after receipt of a complaint or application concerning a possible violation of law, decide: 
1) to commence proceedings of the matter and appoint an official to conduct the proceedings; 
2) to refuse to commence proceedings of the matter if it becomes evident from the materials of 
the complaint or application that the proceedings of the matter are not within the competence 
ofthe Competition Board or that this Act has not been violated. 
(2) The Director General of the Competition Board or his or her deputy has the right to commence 
proceedings of a matter on his or her own initiative to analyse the competitive situation in a 
market, define a market or perform other duties arising from this Act within the competence of 
the Competition Board. 
(3) The Competition Board shall publish a notice concerning the decision to initiate proceedings of a 
matter in at least one daily national newspaper. Third parties with an interest in the matter or their 
representatives have the right to present their written opinion concerning the matter. The 
Competition Board has the right to demand additional information from third parties with an 
interest in the matter or to invite them to the oral discussion of the matter provided for in 
subsection (5) ofthis section. 
(4) The aim ofthe proceedings or the alleged violation of la\\" shaIl be described to the undertaking 
under inspection in a \vritten notice and a term of not less than seven calendar days shall be 
prescribed for submission of written opinions and materials; copies or transcripts of materials (if 
they exist) which are the basis of the information shall be appended thereto and a reference shall 
be made to the Iiability pursuant to this Act. 
(5) 1 f necessary, the oral discussion of a matter may be conducted on a date and in a place prescribed 
by the Director General of the Competition Board or his or her deputy, of which the undertaking 
shall be notified in writing. At the request of the undertaking under inspection, the Director 
General of the Competition Board or his or her deputy is required to condllct the oral discussion 
of the matter in one session. 
(6) The undertakings, their representatives, officials of the Competition Board, representatives of the 
Competition Board and persons invited by agreement of the undertakings and the Competition 
Board may participate in the oral discussion of a matter. A summary shall be prepared of the 
discussion, which shall be signed by the participants. 
(7) The term for submission of written opinions and materials established by Ihe Director General of 
the Competition Board or his or her deputy shall not be less than ten calendar days, and notice of 
Passed 011 ¡ ¡ March, enters ¡nto force / October /998 
(RT / /998, 3D, -110) IPINII/EST/Oll 
Page 12 
the oral discussion of a matter shall be given not less than ten calendar days in advance. At the 
reasoned request of an undertaking or its representative, the Director General of the Competition 
Board or his or her deputy has the right to change a determined termo 
§ 40. Termination ofproceedings ofmatter 
(1) The Director General of the Competition Board or his or her deputy shall make a final decision 
conceming a matter within three months after receipt of all information. The undertaking under 
inspection shall be notified ofthe receipt of all information in writing. 
(2) Before making a decision to establish a violation, the undertaking shall be notified thereof in 
writing and a term ofnot less than ten days shall be determined during which the undertaking may 
examine all materials, except the business secrets of other undertakings, and present its position. 
(3) Proceedings of a matter shall be terminated by a decision of the Director General of the 
Competition Board or his or her deputy on: 
1) non-establishment of an offence or: 
2) establishment of an offence. 
(4) A decision specified in subsection (3) ofthis section shall contain a justification and, if necessary, 
recommendations, and the decision shall be given to the undertaking against a signature or shall 
be mailed to it by post with advice of delivery. 
(5) A decision specified in c1ause (3) 2) of this section may contain a mandatory precept for the 
undertaking or a proposal to a govemment agency or local govemment agency. The term for 
fulfilment of a mandatory precept specified in c1auses (6) 2) or 3) of this section shall not be less 
than one month from the date of receipt of the decision. 
(6) One or several of the following obligations shall be imposed on an undertaking by a mandatory 
precept provided for in subsection (5) ofthis section: 
1) to terminate the violation; 
2) to restore the situation which existed before the violation; 
3) to take actions to eliminate the violation ofthis Act; 
4) not to perform acts which may lead to a violation ofthe requirements ofthis Act. 
(7) Proceedings of a matter shall be terminated by a decision of the Director General of the 
Competition Board or his or her deputy or shall not be commenced if it becomes evident that the 
same matter has been filed with a court or a court order in force concerning the matter already 
exists. 
(8) The Competition Board shall publish a decision made pursuant to this section within three months 
of the entry into force of such decision in at least one daily national newspaper. 
§ 41. Obligation to maintain business secrets 
(1) The Competition Board does not have the right to disclose any business secrets of an undertaking 
to an;; other person or to make such business secrets pub lic. 
(2) Complaints submitted to the Competition Board and decisions, reports and summaries relating to 
the proceedings of a matter or the activity of an undertaking made by the Director General of the 
Competition Board or any other official or representative of the Competition Board are not 
business secrets. 
(3) Upon establishing a violation ofany ofthe provisions ofthis Act, the Competition Board shall not 
use any information against an undertaking which, in accordance with the provisions of this Act, 
may not be disclosed to such undertaking. 
(4) The Competition Board shall omit business secrets from the texts of decisions published pursuant 
to this Act. 
(5) The Competition Board has the right to submit all information to a court at the request of the 
court. 
Chapter 10 
Liability 
§ 42. Liability for violation ofthis Act 
(1) The following persons are he Id liable for violation of this Act: 
1) natural persons -pursuant to the Code of Administrative Offences; 
2) legal persons -pursuant to §§ 43 and 45 ofthis Act. 
(2) If a natural person acting on behalf of or in the interests of a legal person violates this Act or 
legislation arising therefrom, both persons are held liable for the violation and an administrative 
punishment may be imposed on both the legal person and the natural person 
Passed Oll ¡ ¡ Mm'ch, ell/ers in/o force 1 Oc/ober 1998 
(RT 11998,30, -1/0) IPINIl/EST/OI1 
Page 13 
(3) Upon imposition of a punishment for violation of this Act or legislation arising therefrom on a 
legal person, the gravity and nature of the violation and other circumstances, the extent of co­
operation by the offender with the Competition Board and termination of the prohibited activity 
befo re the imposition of a punishment shall be considered. No punishment is imposed if more 
than three years have passed from the violation or term ination of performance of a contract or the 
contract becoming void. 
§ 43. Liability for non-fulfilment ofrequest or decision 
(1) If an undertaking fails, without good reason, to submit information or materials by the deadline 
demanded in a written demand of the Competition Board on a basis provided for in §§ 27 or 36-
39 of this Act, prevents the inspection of the location of its activities, or, withollt good reason, 
refllses inspection prescribed by a directive of the Director General of the Competition Board or 
his or her deputy or fails to appear, withollt good reason, at an oral discllssion, the Director 
General ofthe Competition Board or his or her deputy may by a decision impose a fine ofup to 2 
000 kroons per calendar day, subject to mandatory collection as of the da)" following the date of 
imposition of the fine until the day the undertaking sllbmits written informatíon to the 
Competition Board or allows inspection (the last day exclllded). 
(2) If an lIndertaking fails to fulfil or unsatisfactorily fulfils a mandatory precept set out in a decision 
of the Director General of the Competition Board or his or her deputy as provided for in 
subsection 40 (6) of this Act by the date specified in the decision, the Director General of the 
Competition Board or his or her deputy may by a decision impose a fine of up to 5 000 kroons per 
calendar day, subject to mandatory collection as ofthe day following the date of imposition of the 
fine until the day the undertaking fulfils the precept set out in the decision and notifies the 
Competition Board thereof in writing (the last day excluded). 
§ 44. Appeal of decisions 
(1) An undertaking has the right to file an appeal with a court against a decision of the Director 
General of the Competition Board or his or her deputy on the imposition of a fine specified in § 
43 of this Act pursuant to the procedure provided for in the Code of Administrative Offences 
within one month from the date such decision is received. 
(2) An appeal suspends execution of a decision on the imposition of a fine by the Director General of 
the Competition Board or his or her deputy, unless the court decides otherwise. If the court rules 
that the decision of the Director General of the Competition Board or his or her deputy is lawful, 
the lIndertaking shall pay the fine as of the day following the date of imposition of the fine until 
the day the appeal was made (the last day excluded) and shall continue to pay the fine from the 
day following the passage of ten days from the entry into force of the court order until the day the 
requirement or precept set out in the decision is fulfilled (the last day excluded). 
(3) Ifthe court rules that the decision ofthe Director General ofthe Competition Board or his or her 
deputy is unlawful, the collected fine shall be returned to the undertaking which paid the fine, to 
the extent determined by the court. 
§ 45. Liability of legal person for administrative offence 
(1) For submission of incorrect, incomplete or misleading informatíon or for failure to give notice of 
a merger or to give notice of a merger on time to the Competition Board, a fine of up to I per cent 
of the net turnover of the financial year of the offender preceding the year that the decision to 
impose a fine is made shall be imposed, but not less than 10 000 kroons. 
(2) For concerted practices, enforcement of a prohibited agreement, failure to apply for an exemption 
for an agreement which requires exemption within six months from entry into such agreement, 
failure to fulfil a condition or obligation established in a decision of exemption, for abuse of a 
dominant position of an undertaking in the market or for planning such acts, a fine of up to 5 per 
cent of the net turnover of the financial year of the offender preceding the year that the decision to 
impose a fine is made shall be imposed, but not less than 20 000 kroons. 
(3) For failure to fulfil the obligations provided for in § 18 of this Act imposed on an undertaking 
with special or exclusive rights or a natural monopoly, a fine of up to I per cent of the net 
turnover of the financial year of the offender preceding the year that the decision to impose a fine 
is made shall be imposed, but not less than 10 000 kroons. 
(4) Administrative judges have the right to impose punishments for the administratíve offences 
provided for in this section. 
§ 46. Preparation of administrative offence report 
Passed on II March, enters in/%rce I Octaber 1998 
(RT 11998,30, .:/10) IP/N/1/EST/OIl 
Page 14 
(1) The Director General, his or her deputy, department heads, deputy department heads and chief 
specialists of the Competition Board have the right to prepare reports of administrative offences 
provided for in § 45 ofthis Act. 
(2) A report specified in subsection (1) of this section need not be prepared if the situation in the 
market has been remedied and the losses, if any, have been compensated foro 
(3) A report specified in subsection (1) ofthis section shaIl inelude the foIlowing information: 
1) the date and place ofpreparation; 
2) the name and address ofthe agency in whose name the report is prepared; 
3) the official title, given name and sumame ofthe persan who prepared the report; 
4) the name or business name, registration number and seat ofthe administrative offender; 
5) the given name, sumame and office ofthe representative ofthe administrative offender; 
6) the place, time and description ofthe administrative offence; 
7) a reference to the provisions of this Act which are the basis for imposition of administrative 
liability; 
8) the explanation provided by the representative of the administrative offender or a notation 
conceming the refusal to provide an explanation. 
(4) The person who prepares the report and the administrative offender or his or her representative 
shaIl sign the report. If the administrative offender or his or her representative refuses to sign the 
report, a corresponding entry shaIl be made therein. Written notations of the administrative 
offender or his or her representative conceming the report and on refusal to sign the report shaIl 
be appended to the reporto 
§ 47. Proceedings concerning administrative offences 
(1) Proceedings concerning administrative offences by legal persons provided for in this Act are 
conducted pursllant to the procedure provided for in the Code of Administrative Offences (RT 
1992,29,396; RT 11997,66-68,1109; 73,1201; 81,1361 and 1362; 86,1459 and 1461; 87, 
1466 and 1467; 93, 1561 and 1563; 93,1564 and 1565; 1998,2,42; 17,265; 23,321) and the 
Code of Enforcement Procedure (RT 1 1993, 49, 693; 1997, 43/44, 723), unless otherwise 
provided by this Act. 
§ 48. Compensation for damage 
Proprietary or other damage caused by actions prohibited by this Act shall be compensated for by 
way of civil procedure. 
Chapter 11 
Implementing Pro"isions 
§ 49. Amendments to Code of Administrative Offences 
The references specified in c\ause 228 (I) 16) of the Cade of Administrative Offences are 
amended and worded as follows: "§ l3i, subsection 159 (J r. 
§ 50. Amendments to Commercial Code 
The Commercial Code is amended as follo\vs: 
1) the following text is added to sllbsection 393 (2): 
", with the exception of cases where the realised net tumover of the merging commercial 
undertakings for the financial year exceeds one hundred million kroons or the merging 
commercial undertakings have control over more than 40 per cent ofthe market"; 
2) clause 9) is added to subsection 400 (1) with the following wording: 
"9) the confirmation from the Competition Board of receipt of all necessary information 
concerning the merger, if the realised net turnover of the merging commercial undertakings 
for the financial year exceeds one hundred million kroons or the merging commercial 
undertakings have control over more than 40 per cent ofthe market.". 
§ 51. Implementation of Act 
(1) This Act applies to all agreements and concerted practices which restrict competition and are in 
force at the moment of entry into force of this Act and which are carried out thereafter. 
(2) An application for exemption conceming an agreement entered into before the entry into force of 
this Act is deemed to be submitted without exceeding the deadline specified in this Act if it is 
submitted to the Competition Board within six months aFter the entry into force ofthis Act. 
Passed on 11 Alarch. enters intoforce J Oc/obe,. 1998 
(RT 1 1998. 30, .¡ 1 O) IP/NIlIEST/OIl 
Page 15 
(3) The Minister of Finance shall make a report conceming the grant of state aid in 1996 and 1997 
during 1999 pursuant to § 25 of th is Act. 
§ 52. Repeal of Act 
The Competition Act (RT 1993,47,642; 1995,26-28,355; 1996,49,953) is repealed. 
§ 53. Entry into force of Act 
This Act enters into force on 1 October 1998. 
Passed on 11 March. enters intoforce 1 October 1998 
(RT //998,30,410)