Latvian Competition Law and Policy: Key Developments in 2025

In-Depth Analysis

**Legislative Changes & Personal Liability** Amendments to the Competition Law aim to hold company officials personally liable for competition infringements, potentially banning them from holding official positions for three years. This targets misuse of public funding and seeks to deter cartel participation by making it more than just a "corporate expense."

**Cartel Enforcement** The CC prioritized cartel investigations, fining five construction companies half a million euros for colluding in tenders. This case was initiated by a municipal capital company that identified suspicious coincidences in tender documents, showcasing the success of educating procuring entities on cartel red flags.

**KIA Auto Case** The KIA Auto case, which started in 2014, concluded with the Senate upholding the CC’s decision to fine KIA for restrictive warranty conditions. The CJEU’s ruling clarified the standard of proof required to demonstrate restrictions of competition, emphasizing potential anticompetitive effects.

**Builders’ Cartel Case** A landmark judgment in the "builders’ cartel" case annulled a lower court ruling, deeming covertly recorded conversations inadmissible. The Senate’s decision underscores the importance of procedural fairness and protection of fundamental rights, potentially leading to changes in the law.

**Abuse of Dominant Position** SIA “Mārupes komunālie pakalpojumi” was fined for charging customers for sewage services for water that didn’t enter the sewer system. The CC mandated the company resume installation of secondary water meters and allow customers to use third-party contractors.

**Merger Control** In 2025, the CC made 18 merger decisions, with one merger permitted under binding conditions. A key case involved the Administrative Regional Court quashing the CC’s decision regarding SIA “MAXIMA Latvija” taking over a lease, highlighting the importance of substantive merger assessment.

**Market Inquiries** The CC conducted three market studies, including reports on the scrap metal market, payment terms in the fresh produce supply chain, and public procurement by South Kurzeme Municipality. A retailer, SIA “MAXIMA Latvija”, was fined nearly 2 million euros for violating the Unfair Trading Practices Prohibition Law.

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FAQ

Takeaways

• Stay informed about changes in competition law to ensure compliance.
• Be aware of potential red flags in public procurement tenders to help detect cartels.
• Understand your rights as a consumer and challenge unfair practices by dominant market players.
• Be prepared for potential changes in merger control practices.

Discussion

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