CMS Partner Evis Zaja reports rapid legal and economic developments in Albania, including upcoming amendments in the competition sector, new cybersecurity laws, and the country's increasing appeal to international businesses.
Focusing first on the amendments in the competition sector, Zaja says that she is "expecting the adoption of some important draft amendments in the competition sector very soon. Over the last two years, Albania’s Competition Authority has become increasingly active, moving closer to the standards of the EU authorities." Moreover, she reports that there have recently been "more unannounced market investigations (dawn raids) targeting sectors where prices have been rising without clear justification. Local companies are starting to realize the importance of being prepared for these unannounced market investigations because there have been cases when the businesses have been penalized due to non-collaboration."
Furthermore, Zaja reports that "many businesses now have to provide training for their staff on how to respond to these market investigations – knowing what information to provide and how to avoid giving too much evidence. This is a good development in the market, as it is helping Albanian businesses become more compliant and informed."
Additionally, she reports there are proposed changes to the antitrust law, "which align Albania’s legislation with EU directives, particularly concerning bid-rigging in public tenders. In Albania, where public tenders are common, it's crucial to detect collusive behaviors like cover bidding, bid suppression, and market allocation." Zaja says that the new draft law "will give the Competition Authority additional powers to detect and prevent these types of behavior in the market. Furthermore, the statute of limitations is being updated, introducing a five-year limit, similar to the EU directive, and establishing an absolute statute of limitation, meaning that once this time period has elapsed, no action can be taken by the authority."
Aside from this, Zaja also reports developments in cybersecurity laws. "The new cybersecurity law, approved in April, will have a broad impact on almost all sectors in Albania, including energy, banking, tourism, transportation, and any business involved in cloud computing or digital services," she says. The law gives businesses a two-year transition period to prepare and implement policies to protect themselves from cyberattacks and mitigate risks. "As cybersecurity is becoming increasingly important, businesses will need to safeguard their data, technology, and intellectual property from unauthorized attacks," Zaja adds. "Cybersecurity is essential to protect the know-how and innovations businesses rely on, and the law ensures that companies are equipped to handle these challenges in the digital age."
Finally, Zaja takes a step back to assess the overall status of the market. "The Albanian economy is developing rapidly, and businesses are facing challenges as they work to digitize and modernize their operations, but they are making progress. Sectors like energy and gas are seeing strategic development, and intellectual property is gaining more attention as companies understand the importance of registering intangible assets to increase the value of their businesses," she explains. Moreover, she posits that "cloud computing, digital markets, and media are growing quickly, and Albania is becoming an attractive destination for international companies, not only in tourism but also in various industries looking to tap into the Albanian market. We are seeing more interest from international companies, particularly because Albanians have a strong reputation for being hard workers."
