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Cartel Between Seven Tyre Mounting and Repair Companies

On 27 June 2009 Latvian Competition Council (CC) adopted a decision establishing a prohibited agreement between seven companies that offered services of tyre mounting and repair in Jelgava city and region. Fines imposed in total for all seven companies were in the amount of € 11 931.

As it was found these seven companies had identical or largely resembling pricelists (5 identical and 2 similar in the most relevant positions) that were applied simultaneously. Similar were not only the prices but also services offered, their sequence and grouping as well as punctuation of the text and the design of these lists whereas pricelists of the other participants in this market were substantially different (as were the pricelists of the fined companies before the similar ones where introduced).

By concerted actions with the intention to fix the minimal price of their services (thus minimizing the competition, ensuring certain amount of income, clarifying the information about the actions of competitors and restricting freedom of commercial actions) these companies distorted competition in the tyre mounting and repair market of Jelgava city and region.