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Supreme Court Upholds the Decision on Abuse of Dominant Position by Telecommunication Company



With the decision of 5 May 2009 the Senator Collegium of the Department of Administrative Cases of the Senate of the Supreme Court has dismissed legal proceedings concerning the 17 July 2002 decision of the Competition Council (CC) on fining Lattelecom Ltd. for abuse of dominant position in the market of telecommunication line renting. As this decision can not be appealed and thus CC's decision has become final and Lattelecom Ltd. has paid the fine in the amount of € 204 778 and fulfilled the legal obligations (henceforth to apply sound fees) set by CC .

Lattelecom Ltd. was fined for such infringements (against its collaboration partner and competitor in the market of internet connection services Datatel Ltd.) as imposition of economically unjustified monthly fee for service of "capacity connection" and unilateral rising of this fee without economic justification of costs. Service of "capacity connection" that implies connection of domestic and international capacities was essential for Datatel Ltd. to provide services of internet connection using communication line between Riga and Stockholm.

ith its decision Senate has strengthened the principle that the obligation to present evidences appertains to the market participant in the dominant position. Senate has also declared that in case of imposition of unjustified fee restrictions entailed in the Competition Law has the supremacy in relation to the basic principles of civil rights.