The Competition Council (CC) has calculated that the average public benefit resulting from the implementation of competition policy in Latvia during the period from 2023 to 2025 amounts to approximately EUR 44 million per year. Taking into account the institution’s budget over this period, each euro allocated to the authority generates an average public benefit of EUR 9.62.
To calculate the public benefit generated by the CC, the authority’s decisions adopted between 2023 and 2025 were reviewed, identifying the typical price increase associated with each type of infringement and the possible duration of the infringement. In addition, the positive effect of the authority’s preventive actions was also taken into account, such as warnings and negotiation procedures carried out in relation to specific undertakings or public entities that had committed less significant breaches of competition law or competition neutrality requirements. Compared to the calculation conducted last year, the public benefit has increased by approximately EUR 9 million.
Importantly, the public benefit calculation does not include imposed and paid fines, the primary purpose of which is to deter market participants from committing competition law infringements in the future.
CC Chairwoman Ieva Šmite: “The calculated public benefit confirms that the work of the CC provides a significant and measurable benefit to society - the public benefit exceeds the funding allocated to the authority by more than nine times.”
Key indicators in the public benefit calculation
The most substantial contribution to public welfare in 2025 was made by the detection of an infringement of the Unfair Trading Practices Prohibition Law, as well as the establishment of a breach of the prohibition of abuse of dominant position. Last year, the CC identified unfair trading practices in the conduct of SIA “MAXIMA Latvija”, as well as an abuse of dominant position infringement in the activities of SIA “Mārupes komunālie pakalpojumi”.
A significant contribution was also made by the detection of a cartel or prohibited agreement, with the CC uncovering a prohibited agreement in the engineering communications construction sector in 2025.
In 2025, the desire of market participants to merge has remained consistently strong. Last year, the CC adopted 18 decisions in merger cases. In one case, following the assessment of the merger notification submitted by SIA “Circle K Latvia” regarding the acquisition of sole decisive influence over the fuel filling stations owned by SIA “ASTARTE-NAFTA”, the CC decided to approve the merger subject to binding commitments. In all other cases, the CC approved the mergers.
The authority also carried out preventive work last year by issuing warnings to market participants and conducting negotiation procedures in cases involving less significant potential infringements. Overall, 15 preventive procedures were implemented during the year, with 75 legal entities being warned about possible infringements of the Competition Law and the Unfair Trading Practices Prohibition Law, thereby applying the “Consult at first” principle.
In calculating the public benefit, the CC relies on an internationally recommended methodology developed by the Organisation for Economic Co-operation and Development (OECD), adapting it to the specific characteristics of Latvia’s national economy and supplementing it with recommendations from the European Commission and practical findings of other highly regarded competition authorities worldwide.