Cyprus Supreme Court annuls fine against Cyprus Theatre Organization

The Supreme Constitutional Court of Cyprus has ruled in favor of the Cyprus Theatre Organization (THOK) regarding a seven-year legal battle with the Commission for the Protection of Competition (CPC). The court overturned a 2019 administrative fine of €342,221.35 that had been imposed on THOK for the alleged abuse of a dominant position. The dispute centered on the organization's dual role, as it managed state grants for private theatres while simultaneously competing against them through its own productions.

In a majority decision of six to two judges, the court overruled a previous decision by the Administrative Court of Appeal. The judges concluded that, under the legislation in force at the time, THOK was legally obligated to manage the 'Thymeli' state grant scheme and could not delegate the authority to make funding decisions to an independent committee. Consequently, the mitigation measures previously suggested by the CPC to address potential conflicts of interest were deemed legally inapplicable.

This ruling provides final clarity on the authority regarding state grants, confirming that the THOK board of directors holds the sole legal responsibility for distributing such funds. With this decision, the financial penalty against the organization has been formally set aside, bringing a conclusion to the long-standing litigation.