The Competition Council (CC) started an inquiry into the supply of information systems to public authorities. The CC intends to examine whether competition restrictions in the related markets of development and maintenance of database and information systems may impact competition in the sector concerned.

The CC’s decision to open this sector inquiry follows the findings in the following cases.

At the end of 2013, the CC imposed a fine on one of the largest developers of accounting software in Latvia, SIA FMS Software. The undertaking was found to have impeded competition for five years among its own software distributors, which sell the software Horizon and Horizon Start and the related maintenance and consulting services, thereby keeping clients – enterprises and public authorities – from benefiting from competition among distributors. In another case, the CC fined SIA Transporta telemātikas sistēmas, which develops and maintains a public database owned by the Road Transport Administration, for having abused its dominant position. The undertaking refused to give access to the information that was necessary for the business activities of competitors, and thereby, restricted competition.

The CC’s inquiry will examine whether distributors and maintainers of information systems set favourable conditions for themselves in their agreements with their clients relating to the transfer, use, maintenance and further development of the software, thereby creating unjustified advantages, not only in the market for distribution and maintenance of information systems, but also affecting competition in related markets.

The sector inquiry will cover only information systems provided by the private sector to public authorities