Latvian Competition Council carried out procedural actions as part of an ongoing investigation into a suspected infringement of competition law in the landfill leachate treatment sector. The actions were conducted at two market participants operating several facilities in this sector, in accordance with Article 9, Part Five, Paragraphs 4 and 5 of the Competition Law.
The Competition Council has obtained information suggesting that at least two companies may have exchanged commercially sensitive information and entered into unlawful arrangements concerning market sharing and conditions for participation in procurement procedures. The suspected conduct relates to the technological provision of landfill leachate treatment facilities and the supply of chemicals, and may constitute a prohibited agreement under Section 11, Part One of the Competition Act.
The authority emphasized that horizontal anticompetitive agreements, particularly cartels in procurement processes, represent among the most serious violations of competition law. Undertakings found to have committed such infringements may be subject to fines of up to 10% of their net turnover in the previous financial year, with a minimum fine of €700 per undertaking. In addition, cartel participants may be excluded from participation in public procurement procedures for a period of three years following the entry into force of the Competition Council’s decision.
The purpose of the procedural actions is to determine whether an infringement has occurred by gathering the necessary information and evidence from the market participants concerned. The Competition Council stressed that a violation can only be formally established at the conclusion of the investigation, once all evidence collected during the procedural actions and throughout the case has been fully assessed.
The authority has not ruled out the possibility that other market participants may also be involved in the alleged infringement. As a result, the scope of the investigation may be expanded or narrowed as the proceedings continue. In this context, the Competition Council encouraged undertakings that may have participated in the suspected conduct to make use of the Leniency Programme, under which companies that report a cartel and cooperate with the authority may qualify for full immunity from fines or a significant reduction thereof.
At this stage, the Competition Council indicated that it is unable to provide further details regarding the scope of the case or the identity of the companies subject to procedural actions, as such information is restricted and could jeopardize the effectiveness of the ongoing investigation.