To strengthen fair competition and prevent market distortions, the Competition Council of Latvia (CC) implemented several high-priority initiatives during the first half of 2025. These included the launch of the first infringement case based on signals from its data monitoring tool and the first-ever simultaneous dawn raid conducted jointly across all three Baltic States.
CC Decisions
During the reporting period, the CC adopted three infringement decisions, imposing fines totalling over EUR 100,000.
In one case, the authority found an abuse of dominant position by SIA “Mārupes komunālie pakalpojumi”. As a result of the infringement, a significant number of consumers in Mārupe municipality paid for sewerage services that were not actually provided, overpaying by nearly threefold. The company also restricted competition by preventing other operators from offering the installation and servicing of additional water meters. A fine of over EUR 78,000 was imposed, along with a legal obligation to remedy the infringement.
In another case, although the CC terminated the proceedings without finding an infringement, its investigation led to a positive change in market dynamics concerning public procurements by AS “RĪGAS SILTUMS” for district heating infrastructure. The procurement process became more open and competitive, with an increased number of bidders.
A third decision involved non-cooperation during an inspection. SIA “SILTUMTEHSERVISS” was fined over EUR 26,000 for deleting information essential to the investigation. As inspections are one of the key tools to detect potential infringements, obstructing these procedures is penalised and serves as a deterrent to other market participants.
The CC also carried out four preventative procedures, choosing not to launch formal investigations in cases where there was no repeated behaviour or significant market impact. Instead, the authority issued warnings to 17 legal persons—11 more than in the same period last year—to promote awareness and encourage compliance with competition law.
Two new infringement cases were initiated, and preparations are underway to launch several more in the upcoming period.
Innovative Tools to Detect Collusion
For the first time, the CC opened a case based on insights from its proprietary data monitoring tool. The investigation concerns the distribution market for coffee machines and potential anti-competitive agreements. The CC intends to continue proactively monitoring markets through digital tools to identify signs of potential collusion.
First-Ever Coordinated Dawn Raid Across the Baltics
The coffee machine distribution case is also notable for marking the first time that a coordinated unannounced inspection was conducted simultaneously in Latvia, Lithuania, and Estonia. This joint action with the Lithuanian and Estonian competition authorities highlights the strengthening of international procedural cooperation.
More In-Depth Merger Investigations
The number of in-depth merger investigations increased significantly—four were conducted in the first half of 2025, compared to just two throughout 2024. Pre-merger consultations also grew by over 30%.
Review of Anti-Competitive Behaviour by Public Entities
The CC held negotiations with several municipalities and their undertakings regarding possible market distortions, including in Valmiera and Jūrmala. The CC issued 13 opinions assessing the legitimacy of public entities' participation in commercial activities, reiterating the need for state and municipal bodies to critically assess their role in the market.
The CC will soon publish these opinions on its website to enhance transparency and provide guidance to both public institutions and the general public on neutrality in competition.
Sector Inquiries Across Key Industries
During the first half of 2025, the CC continued its sectoral inquiries in key economic sectors such as food retail, finance, healthcare, environmental services, and IT procurement. Eight of these inquiries are scheduled for completion in the second half of the year—for instance, the review of payment terms in the supply chain for fresh produce and the assessment of competition between public and private healthcare providers.
Cooperation with Contracting Authorities in Public Procurement
To assist contracting authorities in evaluating grounds for the exclusion of bidders, the CC compiled a list of undertakings found to have participated in anti-competitive agreements.
The CC also issued nine opinions to various public buyers—hospitals, state-owned enterprises, municipalities, etc.—on the exclusion of tenderers due to potential competition law violations. While requests for such opinions have declined compared to early 2024, activity levels remain stable relative to the second half of last year.
Three training sessions were held for public procurers, focusing on how to recover damages caused by competition law breaches.
Raising Public Awareness of Competition Law
To promote understanding among market participants, the CC published three informative materials in the first half of 2025, including guidance on cooperation between the CC and public buyers in the context of private damages actions. Work is underway on five additional materials to be published in the second half of the year.
Twelve expert articles were published by the CC during the reporting period, compared to 16 articles throughout all of 2024. This year’s articles focused particularly on explaining economic processes and principles from a competition law perspective.
The CC also hosted free educational seminars attended by approximately 700 participants. These addressed topics such as prohibited agreements, competition neutrality, re-evaluation of public entities’ shareholdings in companies, unfair trading practices, and merger notifications. Feedback from participants indicated high levels of satisfaction and perceived value.
International Cooperation
The CC continued to strengthen its international presence by participating in over 25 events, including W@CompetitionNordic in Tallinn and the CompLaw: Nordic Conference in Sweden. In May, the CC hosted a delegation from the Ukrainian competition authority for a week-long knowledge exchange.
The CC also participates in TSI projects with other European countries, analysing competition conditions in digital markets and exploring methods for enhancing the detection and reporting of collusion in public procurement.
Preparations are ongoing for several major international events in the second half of the year. Notably, in October, Latvia will host an OECD expert working group that will review the CC’s performance and the development of national competition policy.
Legislative Developments
The CC provided input on over 20 draft legal acts during the period, offering recommendations across sectors such as pharmaceuticals, finance, and public utilities. Work also continued on amendments to the Competition Law and the Law on the Prohibition of Unfair Trading Practices.
Litigation Outcomes and Key Legal Insights
In the first half of 2025, courts adopted six rulings favourable or partly favourable to the CC, reinforcing competition law enforcement practice. Only one case was decided against the CC.
The CC also submitted two amicus curiae opinions to the Constitutional Court concerning differentiated corporate income tax treatment and the allocation of state forest land for wind park development.
Regarding fine collection, work continued on seven enforcement cases. Total fines paid into the state budget amounted to EUR 746,529.