The Competition Council of Latvia (CC) has summarized its conclusions about the land survey sector inquiry. Although no violations of the Competition Law were detected and the competition was found to be strong, the CC concluded that competition situation in capital city Riga is distorted by regulations of local government and operation of a municipal enterprise.
It was found that municipal enterprise Rīgas ĢeoMetrs Ltd. has exclusive rights to provide several services, e.g., geodetic control of utilities and transport constructions, marking off of main axles for buildings and constructions etc.
Such monopoly of municipal enterprise is not sound and in the rest territory of Latvia free competition exists in market of these services. In the situation of monopoly prices set by Rīgas ĢeoMetrs Ltd. are up to 50% higher than those provided by private sector enterprises outside Riga.
The database of topographical information in Riga is also maintained by Rīgas ĢeoMetrs Ltd. and the prices for coordination of topographical information are considerably higher than in other municipalities where these databases are maintained by local authority, private enterprise or the State Land service.
The sector inquiry also indicates that there is no reason for the operation of municipal enterprise Rīgas ĢeoMetrs Ltd. in markets where free competition within private sector exists (e.g. topographical survey, land survey, geodetic works).
It was also concluded that requirement for more comprehensive topographical specification in Riga than in the rest of Latvia (stipulated by regulations of local government) creates unreasoned financial burden on demanders of topographical plans.
About the conclusions of this inquiry the CC has informed Prime Minister, the local government of Riga and the Ministry of Regional Development and Local Government.