Cyprus Supreme Constitutional Court overturns €342,221 fine against Cyprus Theatre Organization

The Supreme Constitutional Court of Cyprus has issued a final ruling in favor of the Cyprus Theatre Organization (THOK), overturning a 2019 administrative fine of €342,221.35. The dispute, which lasted seven years, centered on allegations of abuse of a dominant position by the THOK regarding its dual role in managing state subsidies for private theaters while simultaneously competing with them through its own productions.

The court's decision, reached by a majority of six judges to two, reversed a previous judgment by the Administrative Court of Appeal that had supported the Commission for the Protection of Competition (EPA). The core of the legal debate involved the 'Thymeli' state grant scheme. The Supreme Constitutional Court concluded that, under the legislation in force at the time, THOK lacked the legal authority to delegate decision-making power over subsidies to a truly independent committee. Consequently, the mitigation measures proposed by the EPA to resolve the conflict of interest were deemed legally impossible to implement, leading to the cancellation of the fine.

This ruling marks the conclusion of a long-standing legal battle regarding the institutional framework of state cultural funding in Cyprus. By invalidating the EPA's earlier decision, the court has effectively exonerated the organization of the charges of anti-competitive practices related to the historical management of these specific state grants.