On 22 January 2026, the Competition Council (CC) adopted a decision finding that SIA “Burde B.V.” (Burde), in the period from 1 September 2022 to 29 July 2023, applied excessive prices to Road Traffic Safety Directorate (CSDD) for speed camera software licences, thereby infringing the prohibition on the abuse of a dominant position. In the proceedings, the CC established that Burde, being aware that it was the only possible cooperation partner for CSDD capable of supplying software licences necessary for the operation of Gatso RT4 speed cameras, charged CSDD prices for the licences that included a markup approximately twenty to as much as forty times higher than the prices set by the manufacturer. In its decision, the CC concluded that the prices of the software licences were excessive. For the infringement committed, the CC imposed a fine of EUR 24,199.25 on Burde.
Speed cameras and their software licences
The investigation established that CSDD purchased 100 Gatso RT4 speed cameras (Speed Cameras) for measuring vehicle speed. The operation of these devices is possible only in conjunction with software licences issued by the speed camera manufacturer, Sensys Gatso Netherlands B.V. (Gatso) (the Licences), which enable the recording of speed limit violations. To ensure the uninterrupted operation of the Speed Cameras, the Licences must be renewed on a regular basis.
At the same time, the CC concluded that during the infringement period (from 1 September 2022 to 29 July 2023), the distribution of the Licences in the territory of Latvia could be ensured only by Burde, which was the sole undertaking granted exclusive rights in Latvia to distribute the Licences. As a result of this situation, Burde held a dominant position in the market for the distribution of software licences for Gatso RT4 speed cameras in the territory of Latvia.
Abuse of dominant position by Burde
The investigation established that the manufacturer of the Speed Cameras, Gatso, does not unilaterally set the final price of the software Licences for the Speed Cameras; rather, distributors of the Licences have discretion to determine the price paid by the end user. Specifically, Gatso sets its own price for the Licence, while the distributor is entitled to apply a reasonable markup to cover administrative costs and ensure a proportionate profit.
The CC found that within a short period of time the prices of the Licences were significantly and rapidly increased — from EUR 75 per line per month in August 2022 to EUR 125 in September 2022 and to EUR 270 in January 2023, amounting overall to an increase of 260% within six months. Such a price increase could not be explained by inflation, an increase in Gatso’s licensing costs, innovations, or other objective factors.
Accordingly, the CC concluded that the markup applied by Burde during the infringement period significantly exceeded an economically justifiable level. By comparing the Licence price set by Gatso with the prices offered in CSDD procurement procedures, the CC found that the markup set by Burde above the manufacturer’s price in autumn 2022 was approximately twenty times higher than the price set by the manufacturer, while in 2023 it was even higher, reaching approximately thirty to nearly forty times the manufacturer’s price.
In the CC’s view, it was also significant that at the stage of Licence distribution in which Burde operates, no substantial additional economic value is created, as the service provided by the distributor is primarily an intermediary service involving administrative-type costs. Consequently, the price set by the distributor should not be substantially higher than the Licence price set by Gatso, which already includes the manufacturer’s research, development, and intellectual property costs.
Therefore, taking into account that during the infringement period Burde was the sole supplier of the Licences in Latvia and that CSDD had no alternative sources from which to procure the Licences, the CC found that the undertaking abused its dominant position by setting prices that significantly exceeded an economically justified level.
CC decision
Based on the assessment carried out in the case, the CC concluded that the prices for the Licences set by Burde during the period from 1 September 2022 to 29 July 2023 were excessive and infringed the prohibition laid down in Section 13 of the Competition Law.
Considering the gravity and duration of the infringement, the aggravating and mitigating circumstances, and Burde’s role in the commission of the infringement, the CC imposed a fine of EUR 24,199.25 on Burde.
The CC emphasises that in other European Union Member States, the supply of Speed Cameras and the ensuring of their operation have typically been procured as a single integrated service, without providing for separate recurring Licence payments, as was the case in Latvia. The CC notes that in the present case, given that the Licences required for the operation of the Speed Cameras are an indispensable precondition for the functioning of the equipment, the initial procurement of the Speed Cameras was, in substance, not separable from the subsequent procurement of the Licences. Such an approach would reduce the risk that a supplier in a dominant position could unrestrictedly increase prices for a service for which the contracting authority has no effective alternatives.
Accordingly, the CC draws attention to the fact that public contracting authorities must exercise particular diligence in assessing the subject-matter of the procurement, the market structure, and the most appropriate procurement model in situations where competition in the market is objectively limited and supply is dependent on specific manufacturer-imposed conditions, including by examining the practices applied in other European Union Member States in comparable situations. An insufficiently assessed procurement subject-matter or its division into separate lots may create a situation in which the contracting authority becomes dependent on a single supplier in the long term, enabling that supplier to significantly influence price levels and increase costs.