Competition Law at Latvia
Latvia's competition law framework is primarily governed by the Competition Law of the Republic of Latvia, which aligns with European Union (EU) competition regulations and is enforced by the Competition Council of Latvia the Competition Law
Anticompetitive Agreements: The law prohibits agreements that prevent, restrict, or distort competition, including cartels and vertical restraints. Such agreements are considered void from the outset.
Abuse of Dominant Position: Market participants in a dominant position are prohibited from abusing that position to the detriment of competition. Examples include unfair pricing, refusal to deal, and limiting production or markets without objective justification.
Merger Control: Mergers and acquisitions that significantly impede effective competition are prohibited. The Competition Council assesses such transactions to prevent anti-competitive concentrations.
Unfair Trading Practices: The law prohibits unfair trading practices, particularly in the agricultural and food supply chains, and grants the Competition Council authority to enforce compliance
🏛️ Enforcement and Institutional Framework
Competition Council of Latvia: An independent institution responsible for enforcing competition law, investigating infringements, and promoting fair competition practices.
Powers and Sanctions: The Competition Council can impose fines up to 10% of an undertaking's annual turnover for serious infringements. It also has the authority to intervene against public administrative bodies that distort competition, with fines of up to 3% of their net turnover.
Leniency and Settlements: The law includes provisions for leniency programs and settlement submissions, encouraging cooperation from infringers in exchange for reduced penalties.
🔄 Recent Developments and Reforms
Amendments in 2019 and 2020: Recent legislative changes have enhanced the Competition Council's powers to address competition distortions caused by public administrative bodies and capital companies owned by the state or local governments. These amendments aim to ensure competitive neutrality and prevent public entities from unduly restricting or denying private sector opportunities.
Strengthening Independence: In 2022, further amendments were made to strengthen the independence of the Competition Council, ensuring it operates without undue influence from any specific ministry.
🌐 Regional and International Cooperation
Latvia's competition law is harmonized with EU regulations, particularly Articles 101 and 102 of the Treaty on the Functioning of the European Union. The Competition Council collaborates with other EU competition authorities and participates in international forums to align practices and enhance enforcement effectiveness.
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