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The Competition Council Detects Road Construction Cartel



On 18 June 2009 the Competition Council (CC) adopted a decision establishing a prohibited agreement between two road construction companies – Aizputes Ceļinieks Ltd. and Ceļu, tiltu būvnieks Ltd. and imposed fines accordingly in the amount of € 42 490 and € 56 731. Both companies were found guilty of exchanging information in order to increase prices for their services.

Both companies in 2004 had signed similar contracts with Komunālā pārvalde Ltd. of Liepāja city municipality for periodic and everyday maintenance of asphalt roads in different districts of this city. AS CC found – in 2007 these companies exchanged information on prices and concerted their actions to increase the prices set in the above mentioned contracts. Aizputes Ceļinieks Ltd. and Ceļu, tiltu būvnieks Ltd. almost simultaneously submitted applications to Komunālā pārvalde Ltd. explaining their need to increase prices according to the market situation. Content of these applications was in great part identical. CC stated that such concerted actions can mislead buyer about the actual costs of the services un thus hinder the chance to get these socially substantial services for the prices adequate to the actual market situation.

Information about the possible violation of the Competition Law CC obtained while carrying out an inquiry of road (motorway, street, unpaved road) construction market.