Existing Regulation impedes Price Competition in Medicine Market
On 1 February 2011, the Competition Council of Latvia (CC) published its conclusions of the Sector Inquiry into the pricing system in medicine market in Latvia. In its report, the CC draws attention to the existing problems in this market and explores opportunities to reduce prices by means of competition and appropriate regulation. The main recommendations made by the CC a...
The CC Fines for Prohibited Agreement in Contracts between Anchor Tenant and Owner of Shopping Malls
On 8 April 2011 the Competition Council (CC) adopted a decision establishing the existence of a prohibited agreement between retail chain (Rimi group) and lessor of selling space in shopping malls Marno J Ltd. The agreement consisted in a prohibition to lease selling spaces to other undertakings without the permission of Rimi group and in restricting the ability of competing specialised food shops to commen...
Merger in Telecommunication Market Approved Under Binding Conditions
On 13 November 2010 the Competition Council (CC) adopted a decision to approve the proposed merger of Baltkom group and Izzi group – the second and the third largest telecommunication companies in Latvia. While assessing the proposed merger the CC concluded that it could significantly impede effective competition in paid TV market in capital city Rig...
Retail Chain Fined for Overly Long Payment Period for the Delivered Products
On 13 January 2011 the Competition Council (CC) adopted a decision to fine one of the largest retail chains in Latvia MAXIMA Latvija Ltd. for abuse of dominant position in retail trade. It was established that this retailer has applied unjustifiably lengthy payment periods for the products delivered by a small bakery Siguldas Maiznieks Ltd. The fine was set at the amount of EUR 64 029. Retailer was also obl...
The Competition Council Fines Retail Chain for Imposition of Unfair Discounts on Milk Processing Company
On 30 November 2010 the Competition Council (CC) adopted a decision to fine one of the largest retail chains in Latvia RIMI Latvia Ltd. for abuse of dominant position in retail trade. It was established that this retailer has imposed unjustified payments (discounts) on Valmieras piens JSC for the placement of its goods in low price shops Supernetto owned by RIMI Latvia Ltd. The fine was set at the amo...
The CC Finds Distortion of Land Survey Market in Riga
The Competition Council of Latvia (CC) has summarized its conclusions about the land survey sector inquiry. Although no violations of the Competition Law were detected and the competition was found to be strong, the CC concluded that competition situation in capital city Riga is distorted by regulations of local government and operation of a municipal enterprise.
Binding Conditions Set on Merger of Meat Processing Companies
On 8 June 2010, the Latvian Competition Council (CC) adopted a decision permitting a merger between the leading meat processing companies in Latvia – JSC Rīgas Miesnieks and JSC Jelgavas gaļas kombināts. To ensure free choice for retailers and avoid new barriers for potential marketparticipants, binding conditions were set. In order to eliminate the potent...
The Competition Council Discontinues Investigation on the Alleged Infringement By Cemex Ltd. in the Transport-Concrete Market
On 26 February 2010 the Competition Council adopted decision to discontinue the investigation on the alleged abuse of a dominant position by a producer of grey cement, Cemex Ltd. Due to the economic slowdown, the decline in market volume and strong competition, CC found no grounds to establish that Cemex Ltd. abused its dominant position on the gray cement wholesale market with the effect of eliminati...
Court Upholds the Decision on Abuse of Dominant Position by Collective Copyright Management Association
With the decision of 11 December 2009 the Administrative Regional Court rejected a claim of the Collective Copyright Management Association AKKA/LAA against the 1 December 2008 decision of the Competition Council of Latvia (CC) finding the abuse of dominant position. Thus the Court has confirmed the decision of the CC to be sound and legitimate. With its decisions the CC fi...
The Competition Council Fines Two Kiosk Chains for Prohibited Agreement
On 16 December 2009 the Competition Council of Latvia adopted a decision establishing a prohibited agreement between two kiosk chains – Plus Punkts Ltd. and Narvesen Baltija Ltd./Preses apvienība Ltd. – and imposed fines in the total amount of € 146 698. As a result of prohibited agreement both companies almost simultaneously introduced similar commission fees for selling prepaid cards of...