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Amendments to the Competition Law



On 1 September 2009 entered into force Amendments to the Competition Law of the Republic of Latvia.

Most substantial issue of the Amendments refer to the merger control. As from September 1 merger notifications have to be submitted not only by those market participants whose combined turnover for the previous financial year in the territory of Latvia exceeded 25 million lats but also by those market participants whose combined market share in the relevant market exceeds 40%. Amendments allow CC to prevent formation or strengthening of a dominant position in economic sectors where small turnovers are characteristic.

Amendments also introduced several editorial corrections concerning the concept of the dominant position in the retail market. It has been clarified that condition of "sufficient period of time" refers only to the buying power and does not refer to the duration of hindrance, restriction or distortion of competition. Concepts on the period of late payments for the delivered goods and application or imposition of unfair and unjustified payments have also been more concrete. As from now for groceries with validity period up to 20 days payment period cannot exceed 30 days from the date of the delivery. Concerning unfair and unjustified payments it has been clarified, that it also includes application or imposition of unfair and unjustified rebates for the delivery of goods, fees for shelf placement and presence of the delivered goods in the retail shop, as well as payments for marketing activities.