On June 26, 2025, the Competition Council (CC) adopted a decision establishing that the Limited liability company “Mārupes komunālie pakalpojumi” (MKP) had abused its dominant position. As a result of the violation, competition in the market was restricted for the installation and replacement (and sealing) of additional water consumption meters (Additional Meters) in Mārupe municipality, excluding the territory of Spilve village. Furthermore, due to MKP actions, its customers when receiving only water supply services are required to also pay for sewerage services, even if those services are not actually used. This means that in cases where water is used for technical purposes—such as garden watering—MKP customers are forced to pay for sewerage services even though the water is not discharged into the sewer system. As a result, customers overpay for the services received nearly three times.
For the violation committed, the CC imposed a fine of EUR 78 055.79 on the company and established a legal obligation to eliminate the resulting distortion of competition.
In its Decision, the CC found that MKP holds a dominant position in three markets within the administrative territory of Mārupe municipality (excluding the Spilve village territory): the markets for centralized water supply services and centralized sewerage services, as well as the market for the installation/replacement (and sealing) of additional water consumption meters related to those services. When determining the dominant position of MKP, the CC took into account that the Mārupe municipality had signed an agreement with MKP for the provision of water supply services in the municipality, delegating MKP to be the sole provider of centralized water utility services in the area.
MKP Prevents Its Clients from Installing Additional Meters Themselves or Through Certified Companies
Before 2016, MKP allowed its customers to track water that wasn’t discharged into the centralized sewer system (a service known as the Additional Service), in response to customer demand. Customers could install Additional Meters themselves or through a certified company to ensure they only paid for the water used for technical purposes. In 2019, MKP also began offering installation and replacement of Additional Meter for a fee, competing with other market participants until January 14, 2022.
However, on January 14, 2022, MKP adopted an internal instruction requiring that Additional Meters could only be installed or replaced by MKP at its own expense, and these meters would become the property of MKP. As a result, from January 14, 2022, to June 12, 2023, MKP was the only company authorized to install and replace Additional Meters in Mārupe municipality (excluding Spilve village).
The CC concluded in its Decision that national normative regulation does not grant exclusive rights to the water utility provider for installing or replacing Additional Meters. Information obtained during the case also showed that other municipalities do not follow a uniform approach regarding the installation and replacement of Additional Meters.
Therefore, the CC concluded that MKP must provide the installation and replacement (including sealing) of Additional Meters under free market conditions and must not unjustifiably restrict customers’ rights to choose the service provider most favorable to them.
Charges for Sewerage Services Even When Not Used
On June 12, 2023, MKP decided to terminate the provision of the Additional Service, resulting in customers currently paying for sewerage services even in cases where water is not discharged into the sewer system. That is, although in such cases MKP clients should only pay for the water supply service at EUR 1.16/m³, they are instead charged EUR 3.81/m³, covering the cost of sewerage services as well.
CC Decision
With its Decision, the CC determined that, first, during the period from January 14, 2022, to June 12, 2023, MKP violated the prohibition on the abuse of a dominant position by deliberately closing the market and preventing its customers or their chosen certified companies from installing Additional Meters. Secondly, from June 12, 2023, until the adoption of the Decision, MKP unjustifiably required its clients to pay for sewerage services even when those services were not actually provided.
Considering the duration and severity of both violations, the CC decided to impose a fine of EUR 78 055.79 on MKP, to be paid into the state budget within 45 days from the receipt of the Decision.
Immediately following the notification of the Decision to MKP, the company became subject to legal obligations: within three months, it must resume the provision of the Additional Service and ensure that Additional Meters can be installed by clients themselves or by certified companies.
MKP is also required to publish information on its website and other customer-facing channels about the reinstatement of the Additional Service and the option for customers to install Additional Meters themselves or through a certified third party.