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Fines and Legal Obligations Imposed on Freeport of Riga for Abuse of Dominant Position



Competition Council (CC) has adopted a decision on imposing a fine in the amount of € 64 029 and legal obligations on Freeport Riga Authority for abuse of dominant position that hindered competition in the market of towboat services in freeport of Riga.

After purchasing its own towboats and starting its economic activity in the market of towboat services in freeport of Riga, Freeport of Riga Authority abused its dominant position against the other market player – supplier of towboat services – PKL flote Ltd. The violation took place as blocking and impeding PKL flote Ltd. to provide towboat services in freeport of Riga by setting unreasonable requirements as well as by not allowing PKL flote Ltd. to provide towboat services to its customers.

Thereby Freeport of Riga Authority has created unreasonable advantages for itself in comparison to the other supplier of towboat services.

To ensure elimination of established violations and impact of unfavorable competition conditions as well as of further violation relapse CC imposed legal obligations on Freeport Riga Authority.

Along with legal obligations preventing particular violations against PKL flote Ltd. (Freeport of Riga Authority has to immediately allow towboats of PKL flote Ltd. to commence supplying towboat services in freeport of Riga). CC has stated that henceforth it is forbidden to set additional conditions for commencement of supplying towboat services in freeport of Riga if these conditions are not related to the commencement of activities of any particular towboat in the freeport of Riga.

Requirements applied to suppliers of towboat services have to be foreknown and clearly understandable, objectively justifiable and equitable, without implying discrimination of any particular supplier of towboat services. Freeport of Riga Authority also has to discontinue unitary information collection through its Ship Traffic Centre about ship owner's or agent's applications for towboat services.

Regulations of towboat service supply have to be elaborated. Freeport of Riga Authority has been prohibited to regulate anywise relationships between suppliers of towboat services and their clients. CC has also ordered Freeport of Riga Authority to transmit supplying of towboat services to other legal entity within one month from the day its decision is coming into force.