Romania’s competition law framework
Romanian competition law is applied primarily by the Romanian Competition Council (RCC), which is the national competition authority that prevents and sanctions anti-competitive conduct. The regime follows closely EU competition law, in particular Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU), in order to ensure consistent application across the European market.
The RCC is empowered to carry out extensive investigations, such as dawn raids, requests for information from companies, and high financial penalties. For businesses active in Romania, it is crucial to know the extent of these regulations in order not to incur legal, financial, and reputational damage.
Cartel risks: agreements between competitors
One of the most severe breaches of competition law is participation in a cartel. This would refer to coordination between rivals with respect to price, market division, or output restraint. The RCC views this kind of conduct as per se offenses, i.e., presumptively illegal without further economic justification.
In recent years, the RCC has heightened awareness in areas such as energy, retailing, construction, and online services, where evidence of collusion has been discovered. Business entities should understand that even casual agreements, including word-of-mouth arrangements, email exchanges, or gatherings at trade associations, can be viewed as cartel activity under Romanian and EU law.
Penalties for cartel involvement are strict, including fines of up to 10% of the business’s turnover in any one year. In addition to the financial punishment, those involved can be disqualified as directors or, in some circumstances, criminally liable.
Abuse of dominance: market power under scrutiny
The second typical area of enforcement in Romania concerns the abuse of a dominant position. A company is considered dominant when it can act independently of its rivals and customers, often assessed by significant market share.
This abusive behavior may, for example, include predatory pricing, refusal to grant access to essential facilities, tying and bundling of products, or imposing unfair contractual terms on business partners. Being in a dominant position is not illegal per se, but utilizing the position to abuse competition or consumers is strictly prohibited.
The RCC actively investigates dominance cases in sectors critical to the Romanian economy, including telecommunications, transport, and utilities. Companies with a strong market share should adopt internal controls and seek legal guidance before implementing commercial strategies that could raise concerns.
Recent enforcement trends in Romania
The RCC has intensified its enforcement activity in recent years, reflecting both domestic priorities and alignment with EU competition policy. Some key trends include:
- Digital markets and online platforms: scrutiny of pricing algorithms, online sales restrictions, and exclusivity agreements.
- Public procurement: increased investigations into bid-rigging practices, especially in infrastructure and construction projects.
- Sustainability initiatives: careful review of competitor cooperation on environmental or ESG goals, to ensure they do not cross into anti-competitive behaviour.
These trends show that compliance is not static: Romanian companies must regularly adapt their programmes to match new risks and enforcement focus areas.
Building a competition law compliance programme
For businesses operating in Romania, a robust competition compliance programme is the most effective defence against enforcement action. Such programmes should include clear internal policies, staff training, monitoring systems, and whistleblowing mechanisms.
It is not enough to draft policies on paper. Regulators expect companies to demonstrate active implementation, including regular audits, updated risk assessments, and swift responses to potential violations. Employees at all levels, particularly those in sales, procurement, and management, must understand what constitutes anti-competitive conduct and how to avoid it.
Engaging external legal counsel can also add credibility to compliance programmes and provide up-to-date expertise on enforcement priorities.
Practical steps for Romanian businesses
Companies should take proactive measures to minimise their exposure to cartel and dominance risks. This involves a combination of preventive and responsive strategies, such as:
- Conducting regular internal audits of commercial agreements and market practices.
- Establishing clear reporting lines for suspected violations, including confidential channels for employees.
- Providing specialised training sessions tailored to different departments, especially those in high-risk functions.
- Reviewing all participation in trade associations to ensure information exchanges do not cross into collusion.
By adopting these measures, Romanian companies can strengthen their compliance culture and reduce the risk of sanctions.
Competition law compliance as a strategic advantage
Competition law compliance in Romania is no longer a box-ticking exercise: it is a vital part of corporate governance and risk management. With the RCC intensifying enforcement, businesses must stay ahead by building robust compliance frameworks, monitoring industry practices, and training staff effectively.
By doing so, companies not only avoid penalties but also build a reputation for fairness and reliability in the market. In an economy where trust and transparency increasingly shape business success, compliance with competition law is both a legal necessity and a strategic advantage.