The integrity of the food retail market faced a significant shake-up yesterday as the Latvian Competition Council (CC) executed a series of high-stakes procedural actions against two major industry players. Following a formal judicial decision and bolstered by the support of the state police, investigators descended upon these market participants on February 26, 2026, to secure evidence regarding a suspected horizontal cartel. This move marks a critical step in the CC’s mission to dismantle prohibited agreements that undermine the economic interests of consumers.
Central to this investigation is the suspicion that these two retail giants abandoned independent commercial strategies in favor of mutual coordination. The CC has identified preliminary signs of price-fixing, a practice that directly violates Article 101 of the Treaty on the Functioning of the European Union. By allegedly synchronizing their sales prices, these companies may have artificially inflated the cost of living for the general public, bypassing the natural competitive pressures that usually keep prices in check.
The stakes for the companies involved are remarkably high. Horizontal cartels are classified as among the most egregious violations of competition law, carrying the potential for severe financial repercussions. If the investigation confirms the existence of a prohibited agreement, the offending market participants could face fines reaching as high as 10% of their global net turnover from the previous financial year. Such penalties are designed not only to punish but to serve as a formidable deterrent against future anti-competitive behavior.
Despite the intensity of the recent raids, the Competition Council maintains a measured stance regarding the finality of these findings. The CC emphasizes that these procedural actions are a means to gather necessary data and that a formal violation can only be established once the entire investigation process is complete. This process includes a meticulous review of all seized evidence and a formal hearing where the market participants in question are granted the opportunity to defend their actions.
To ensure a comprehensive inquiry, the CC is actively reaching out to the broader business community. Suppliers and industry insiders who possess relevant information are encouraged to come forward, with the Council offering a guarantee of total anonymity to those who assist. Furthermore, the CC has extended an invitation for the involved parties to utilize the Leniency Program. By self-reporting and cooperating fully, companies involved in such violations can qualify for significant reductions in their eventual fines.
For the time being, the specific identities of the retailers under investigation remain confidential. The CC has stated that revealing further details at this juncture could jeopardize the effectiveness of the ongoing proceedings. As the investigation moves into its next phase, the focus remains on restoring credibility to the food retail sector and ensuring that the market operates on a foundation of fair play and transparency.