Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
22 April 2004 [shall come
into force from 1 May 2004];
13 March 2008 [shall come into force from 16 April
2008];
14 November 2008 [shall come into force from 1 January
2008];
18 June 2009 [shall come into force from 1 September
2009];
1 December 2009 [shall come into force from 24 September
2010];
12 September 2013 [shall come into force from 1 January
2014];
21 May 2015 [shall come into force from 1 January
2016];
12 May 2016 [shall come into force from 15 June
2016];
5 October 2017 [shall come into force from 1 November
2017];
28 March 2019 [shall come into force from 23 April
2019].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
|
The Saeima1 has adopted and
the President has proclaimed the following law:
Competition
Law
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) dominant position - an economic (commercial)
position in a relevant market of a market participant or several
market participants if such participant or such participants have
the capacity to significantly hinder, restrict or distort
competition in any relevant market for a sufficient period of
time by acting with full or partial independence from
competitors, clients, suppliers or consumers;
2) decisive influence - the capability, directly or
indirectly, to:
a) control (regularly or irregularly) the taking of decisions
in market participant supervisory bodies, with or without active
participation thereof,
b) appoint such number of members in the market participant
supervisory or executive body, which ensures for the wielder of
the decisive influence a majority of votes in the respective
body;
21) cartel agreement - an agreement between
competitors aimed at hindering, restricting or distorting
competition [fixing or coordination of purchase or selling prices
or other trading conditions, including in relation to
intellectual property rights, the allocation of production or
sales quotas, the sharing of markets and customers, including
participation or non-participation in competitions or auctions or
an agreement on the provisions for such actions (inactions), the
restrictions of import or export or anticompetitive activities
against other competitors];
3) relevant geographical market - a geographical
territory in which competition conditions in a relevant market of
a product are sufficiently the same for all participants in such
market and therefore this territory can be separated from other
territories;
4) relevant market - a market of a relevant product
which is evaluated in connection with a relevant geographical
market;
5) relevant product market - a particular product
market which also includes all those products which may be
substituted for this particular product in a relevant
geographical market, taking into consideration the factor of
substitution of demand and supply, the specific features of the
product and its utilisation characteristics;
6) competition - the existing or potential economic
(commercial) rivalry between two or more market participants in a
relevant market;
7) competitors - two or more market participants who
compete;
71) indirect purchaser - a natural or legal
person who has acquired, not directly from an infringer, but from
a direct purchaser or a subsequent purchaser, goods that are the
object of an infringement of competition law, or goods containing
them or derived therefrom;
72) infringer - a market participant or an
association of market participants which has committed an
infringement of competition law;
73) overcharge - difference between the
price actually paid and the price that would otherwise have
prevailed in the absence of an infringement of competition
law;
8) product - tangible or intangible property or service
which satisfies some need and for which a price may be specified
when purchasing or selling such product on the market;
81) direct purchaser - a natural or legal
person who has acquired, directly from an infringer, goods that
are the object of an infringement of competition law;
9) market participant - any person (also foreign
persons), who performs or is preparing to perform economic
activity in the territory of Latvia or whose activity shall
influence competition in the territory of Latvia. If a market
participant or several market participants jointly have a
decisive influence over one market participant or several other
market participants, then all market participants may be
considered as one market participant;
10) market share - that share of products which a
market participant offers in a relevant market in relation to the
total amount of products offered in such market;
11) agreement - a contract between two or more market
participants or concerted practices in which market participants
participate, as well as a decision taken by a registered or
unregistered association (association, union and the like) of
market participants or by an official of such association.
[22 April 2004; 13 March 2008; 5 October 2017]
Section 2. Purpose of this Law
The purpose of this Law is to protect, maintain and develop
free, fair and equal competition in the interests of the public
in all economic sectors by restricting market concentration,
imposing as a duty the termination of activities prohibited by
the laws and regulations governing competition, and by calling to
account persons at fault in accordance with procedures laid down
in laws and regulations.
Section 3. Application of this
Law
(1) This Law applies to market participants, registered or
unregistered associations of market participants, and
institutions of direct or indirect administration, and also to
capital companies in which a public person has decisive
influence.
(2) An institution of direct and indirect administration, and
also a capital company in which a public person has decisive
influence shall ensure free and fair competition in its
activities.
[28 March 2019]
Chapter
II
Competition Council
Section 4. Legal Status of the
Competition Council
(1) The Competition Council is an institution of direct
administration, which shall act in accordance with this Law and
other laws and regulations. The Cabinet shall establish the
Competition Council and it shall be subordinate of the Ministry
of Economics, which shall be realised in the form of
supervision.
(2) [22 April 2004]
(3) The operation of the Competition Council shall be financed
from the State budget.
[22 April 2004]
Section 5. Composition and Operation
of the Competition Council
(1) The council shall be the decision-making body of the
Competition Council which takes decisions on behalf of the
Competition Council and enters into administrative contracts on
competition matters. The Competition Council shall consist of
units that ensure its operation through performing the functions
of the secretariat and experts, by preparing case materials,
documents, and draft decisions to be reviewed at the meetings of
the council, and by representing the Competition Council in a
court and when enforcing the decisions taken by the Competition
Council. The council shall consist of three council members, one
of whom being the chairperson of the council.
(2) The chairperson of the council and members of the council
shall be appointed by the Cabinet following the recommendation of
the Minister for Economics.
(3) The term of office of the chairperson of the council and
members of the council shall be five years. The chairperson of
the council and members of the council may be re-appointed to the
office one time in succession.
(4) The chairperson of the council and members of the council
shall be civil servants whose professional qualifications enable
them to take decisions on competition matters.
(5) The Competition Council shall sit at closed meetings
unless decided otherwise. The meetings shall be convened upon
request of the chairperson of the council or all council members.
The Competition Council is entitled to take a decision or enter
into an administrative contract if at least two council members
have voted for it.
(6) Minutes shall be taken at meetings of the Competition
Council. All council members who participated in the meeting
shall sign the minutes of the meeting. When signing the minutes
of a meeting, a council member may record his or her views
regarding the issues under examination or make a note regarding
appending of a written substantiation of his or her views to the
minutes.
(7) The decision of the Competition Council and administrative
contract shall be signed by the chairperson of the council.
(8) The chairperson of the council:
1) shall lead and organise the work of the Competition Council
and be responsible for it;
2) shall manage the financial resources of the Competition
Council and be responsible for their utilisation;
3) shall chair and organise the meetings of the Competition
Council;
4) shall represent the Competition Council without any special
authorisation;
5) is entitled to give direct orders to any staff member of
the Competition Council;
6) is entitled to give direct orders to members of the
Competition Council only in relation to organisational issues
related to the fulfilment of the duties of office.
(9) During the illness or absence of the chairperson of the
council his or her duties shall be fulfilled by a member of the
council who has been authorised by the chairperson of the
council.
(10) After expiry of the term of office, the former
chairperson of the council or a council member shall continue to
fulfil his or her duties until taking the office after
re-appointment or when the newly appointed chairperson of the
council or council member takes office.
[12 May 2016]
Section 6. Duties of the Competition
Council
(1) The Competition Council shall:
1) monitor compliance with the prohibition against the abuse
of dominant position and prohibited agreements by market
participants, prescribed in this Law, other laws and regulations
and international contracts;
2) monitor compliance with the Advertising Law within the
scope of its competence;
3) examine the submitted notifications on agreements between
market participants and take decisions thereon;
4) restrict market concentration by taking decisions in
relation to mergers of market participants;
5) co-operate, within the scope of its competence, with the
relevant foreign institutions;
6) monitor the compliance of an institution of direct or
indirect administration, and also a capital company in which a
public person has decisive influence with the obligation to
ensure free and fair competition.
(2) The Competition Council shall inform the public of the
fulfilment of the tasks of the Competition Council and of other
issues related to the protection, maintenance, and development of
competition. The Competition Council shall publish the decisions
taken in accordance with Section 8, Paragraph one, Clauses 3, 5,
and 6 of this Law on its website and in the gazette Latvijas
Vēstnesis.
(3) The Competition Council, as an institution which is
subordinate to the Ministry of Economics, shall:
1) in accordance with its competence, draft legislative
proposals and duly submit them to the Ministry of Economics;
2) prepare draft opinions on draft laws and regulations to be
examined in the Cabinet which, directly or indirectly, may refer
to the protection, maintenance, or development of
competition;
3) where necessary, in cases of privatisation, reorganisation,
and demonopolization of State or local government undertakings
(companies) supply the institution concerned with written
proposals or opinions on compliance with competition protection,
maintenance, or development principles.
[22 April 2004; 13 March 2008; 14 November 2008; 12 May
2016; 28 March 2019 / Clause 6 of Paragraph one shall come
into force on 1 January 2020. See Paragraph 16 of
Transitional Provisions]
Section 7. Rights of the Competition
Council
(1) The Competition Council is entitled to:
1) carry out market surveillance and conduct investigations of
the violations of this Law and the Advertising Law;
2) provide opinions on the conformity of the activities of
market participants with the laws and regulations governing
competition;
3) submit pleadings, applications and complaints to a court in
the cases provided for in this Law and other laws and
regulations;
4) publish the views and recommendations of the Competition
Council;
5) apply the European Union competition law;
6) fulfil the duties imposed upon a Member State competition
authority by Council Regulation (EC) No 1/2003 of 16 December
2002 on the implementation of the rules on competition laid down
in Articles 81 and 82 of the Treaty (Text with EEA relevance)
(hereinafter also called - Council Regulation No 1/2003), and to
use the rights provided for in this Regulation;
7) engage experts, counsellors or specialists to carry out
tasks provided for in this Law;
8) fulfil the duties imposed by Regulation of the European
Parliament and of the Council (EC) No 2006/2004 of 27 October
2004 on cooperation between national authorities responsible for
the enforcement of consumer protection laws and to utilise the
rights provided for in the Regulation;
9) prioritise the tasks referred to in Section 6, Paragraph
one of this Law;
10) to request and to receive direct access to the information
accumulated in the State information system regarding
procurements, procurement procedures, submitted applications and
tenders.
(2) The Competition Council is entitled to evaluate the draft
legislation and other documents prepared by other authorities and
to provide opinions thereon, if they include provisions
influencing the market mechanism the enforcement of which could
directly or indirectly restrict competition.
(3) When deciding on the initiation of a case or taking a
decision in an initiated case, is entitled to determine whether
the actions taken by the market participant have caused or have
the capacity to cause detrimental effect on competition.
(4) The mandate of an official of the Competition Council
shall be attested by a service identification document.
[22 April 2004; 13 March 2008; 14 November 2008; 12 May
2016; 5 October 2017; 28 March 2019]
Section 8. Decisions of the
Competition Council
(1) The Competition Council shall decide on:
1) the initiation of a case;
2) the extension of the time period for taking the
decision;
3) the establishment of a violation, imposition of a legal
obligation and fines;
4) the termination of an investigation of a case;
5) mergers of market participants;
6) notified agreements;
7) the violations of the Advertising Law.
(2) The decisions of the Competition Council referred to in
Paragraph one of this Section, except for decisions on the
initiation of a case and extension of the time period for the
taking of a decision, may be appealed by a market participant to
a regional administrative court within one month from the day
when such decision came into effect. The court shall examine a
case as the court of first instance. The case shall be examined
in the composition of three judges. A judgement of the Regional
Administrative Court may be appealed by submitting a cassation
complaint.
(3) [12 May 2016]
(4) [12 May 2016]
(5) The Competition Council is exempt from court costs, if it
submits an application, submission or lodges a complaint in court
in relation to the violations of this Law or other laws and
regulations applicable in this field.
(6) Directions regarding the commencement of an investigation
of a case in a particular case, as well as regarding the manner
in which the investigation shall be conducted or a decision
taken, may not be given to the Chair and members of the
Competition Council by the Cabinet, the Minister for Economics or
other persons. The Competition Council shall not agree upon the
ascertainment with a higher institution.
(7) The decisions of the Competition Council are binding on
market participants, and associations of market participants.
(8) The decisions of the Competition Council shall be
implemented voluntarily. Compulsory execution of a decision not
executed voluntarily shall be carried out by a bailiff. The
Competition Council is exempt from the payment of the State fee
for the submission of a decision for enforcement.
[22 April 2004; 13 March 2008; 14 November 2008; 12 May
2016]
Section 8.1 Forced
Execution of Legal Obligation
(1) In case of a failure to comply with a legal obligation,
the Competition Council may carry out forced execution of the
legal obligation by imposing pecuniary penalty in accordance with
the procedures laid down in the Administrative Procedure Law,
insofar as other procedures are not laid down in this Law.
(2) The addressee shall get a written warning on forced
execution of the legal obligation. The warning is not subject to
appeal.
(3) The Competition Council shall impose a pecuniary penalty
with an executive order which may be issued repeatedly until the
market participant has fulfilled its legal obligation.
(4) Prior to issuing the executive order, the Competition
Council shall notify the market participant in writing that
information required for the issuance of the executive order has
been obtained. The market participant may become acquainted with
the case, express own opinion, and provide additional information
within seven days after receipt of the abovementioned
notification.
(5) The amount of pecuniary penalty shall be determined up to
five percent of the average net daily turnover in the last
financial year per day, but not less than 250 euros per day until
the legal obligation has been fulfilled.
(6) A complaint on the executive order may be submitted with
the Administrative Regional Court within seven days after its
receipt. The complaint shall be examined within a reasonable time
period, but not later than within one month from the day of its
receipt.
(7) Appeal of the executive order shall not suspend its
enforcement. The executive order on pecuniary penalty shall be
enforced in accordance with the procedures laid down in Section
8, Paragraph eight of this Law.
(8) The Cabinet shall, in accordance with Section 12,
Paragraph five of this Law, issue regulations regarding the
procedures for determining net turnover in a financial year based
on which the pecuniary penalty is calculated.
(9) If a private individual has incurred damages as a result
of unlawful forced execution of a legal obligation, it is
entitled to indemnification in accordance with the provisions of
the Administrative Procedure Law and the Law On Indemnification
of Damages Caused by State Administration Institutions.
[12 May 2016]
Section 9. Powers of the Competition
Council
(1) [12 May 2016]
(2) [12 May 2016]
(3) [12 May 2016]
(4) [12 May 2016]
(5) The Competition Council, when carrying out market
surveillance or investigating the violations of this Law or of
the Advertising Law and ensuring the enforcement of its
decisions, is entitled to:
1) request and receive from any person and association of
persons in the manner stipulated by the Competition Council for
provision of information and within the time period laid down in
Section 26, Paragraphs two and three of this Law, any information
necessary for the performance of the tasks specified in this Law
and the Advertising Law (also information containing commercial
secret), as well as written or oral explanations;
2) request any person who is related to a violation of this
Law or the Advertising Law and whose explanations may be of
importance in the case to appear at the Competition Council to
give an explanation;
3) pay a visit to any market participant or an association of
market participants (including without prior notice). During the
visit, upon presenting a written authorisation issued by the
institution where the subject and purpose of the inspection is
specified, the officials of the Competition Council have the
right to:
a) request documents (including documents prepared
electronically and containing commercial secret), become
acquainted on site therewith and receive such documents or the
derivative documents thereof certified in accordance with the
procedures laid down in laws and regulations;
b) request and receive written or oral explanations from the
employees of a market participant;
c) withdraw property and documents of a market participant or
an association of market participants which may be of importance
in the case;
4) on the basis of a judicial warrant, without prior notice
and in the presence of police, to enter the non-residential
premises, means of transport, flats, structures and other
immovable and movable objects that are in the ownership,
possession or use by a market participant or by an association of
market participants, to open them and the storage facilities
existing therein, carry out a forcible search of the objects and
the storage facilities therein and perform an inspection of the
existing property and documents therein including the information
(data) stored on computers, floppy disks and other information
media in an electronic information system. If a person whose
property or documents undergo a search refuses to open the
objects or storage facilities existing therein, the officials of
the Competition Council are entitled to open them without causing
substantial damage. During the search and inspection the
officials of the Competition Council are entitled to:
a) prohibit the persons who are present at the site under
inspection from leaving the site without permission, from moving
and from conversing among themselves until the end of the search
and inspection;
b) become acquainted with the information included in the
documents and in the electronic information system (including
information containing commercial secret);
c) withdraw property items and documents which have been found
and which may be of importance to the case;
d) request and receive derivative documents certified in
accordance with the procedures laid down in laws and
regulations;
e) print out or record the information (data) stored in the
electronic information system to electronic information
media;
f) request and receive written or oral explanations from the
employees of the market participant;
g) temporarily, but not longer than for 72 hours, seal the
non-residential premises, means of transport, structures and
other objects and the storage facilities therein, in order to
ensure the preservation of evidence;
5) on the basis of a judicial warrant, if there are
justifiable grounds for suspicion that documents or property
items that might serve as evidence of a violation of this Law are
being stored in non-residential premises, means of transport,
flats, structures and other immovable and movable objects in the
ownership, possession or use of other persons, perform, in
relation to such persons, the activities referred to in Clause 4
of this Paragraph in the presence of police;
6) on the basis of a judicial warrant or with a consent of the
data subject, when investigating an infringement of competition
law which manifests itself as a prohibited agreement, request
that the electronic communications merchant disclose and release
the data to be stored in accordance with the Electronic
Communications Law;
7) in accordance with the Credit Institution Law and on the
basis of a judicial warrant, when investigating an infringement
of competition law, request that the credit institution provide
the undisclosable information at its disposal. Disclosure of
information to the Competition Council in accordance with the
procedures laid down in this Section shall not be considered as
disclosure of undisclosable information and shall not result in
legal liability to a credit institution, including civil legal
liability.
(6) During the procedural actions referred to in Paragraph
five, Clauses 4 and 5 of this Section the market participant or
an association of market participants, the employees of such
market participant or an association of market participants, and
other persons connected with the infringement under
investigation, upon lawful request from the officials of the
Competition Council, have the duty to:
1) ensure access to any of the non-residential premises, means
of transport, flats, structures and other immovable and movable
objects owned by them, in the possession thereof, or used by
them, by opening them and the storage facilities therein;
2) ensure access to documents compiled or stored in any way or
form, as well as to information (data) stored in the electronic
information system;
3) provide full and truthful requested information within a
specified period of time;
4) present the requested documents, true copies (copies) or
extracts thereof, and certify the accuracy thereof in accordance
with the procedures laid down in laws and regulations;
5) attest to the authenticity of print-outs of the information
(data) stored in the electronic information system and the
authenticity of the records made in electronic information
media;
6) execute other lawful requests made by officials of the
Competition Council.
(7) [12 May 2016]
(8) [12 May 2016]
(9) The State Police shall provide assistance to the officials
of the Competition Council in the performance of the procedural
actions referred to in Paragraph five of this Section.
[22 April 2004; 13 March 2008; 14 November 2008; 12 May
2016]
Section 9.1 Judicial
Warrant
[12 May 2016]
Section 9.2 Procedural
Action Report
(1) The procedural actions related to market surveillance and
investigation of the violations referred to in Section 9,
Paragraph five of this Law shall be recorded by the officials of
the Competition Council in a procedural action report.
(2) The following information shall be included in the
procedural action report:
1) the venue and the date of occurrence of the action;
2) the legal basis for the performance of the action;
3) the time when the action was initiated and completed;
4) the position, name and surname of persons who performed the
procedural action;
5) the position, name and surname of the person who compiled
the report;
6) the positions, names and surnames of the persons -
participants in the action;
7) the state of progress of the action and the established
facts;
8) the property and documents obtained during the procedural
action.
(3) The property and documents obtained during the procedural
action shall be attached to the report.
(4) The person who performed the procedural action shall
acquaint the persons who participated in the relevant action with
the contents of the procedural action report and the attachments
thereof. The corrections and additions made by the persons shall
be recorded in the report.
(5) The person who performed the procedural action, the person
who compiled the report and all persons who participated in the
relevant action shall sign the report as a whole and each page
thereof separately. If a person refuses to sign, it shall be
recorded in the report, indicating the cause of and the reasons
for the refusal.
[13 March 2008; 12 May 2016]
Section 9.3 Rights of a
Market Participant and of Other Persons
(1) When commencing the procedural actions referred to in
Section 9, Paragraph five, Clauses 3, 4, and 5 of this Law, an
official of the Competition Council shall notify a market
participant or other person in relation to whom such actions are
performed of his or her rights.
(2) The market participant or other person in relation to whom
the procedural actions referred to in Section 9, Paragraph five,
Clauses 3, 4, and 5 of this Law are performed have the right:
1) to be present during all procedural actions, to express his
or her comments and requests;
2) when providing explanations, to use the assistance of
counsel or use another type of legal aid. The commencement of
provision of explanations shall be postponed temporarily for not
longer than one hour if it is necessary to wait for the arrival
of a counsel or other provider of legal aid;
3) to propose that the information to be provided or a part
thereof be assigned the status of restricted access
information;
4) to become acquainted with the procedural action report and
the documents attached thereto, to submit corrections and
additions;
5) to submit a complaint regarding the acts of an official of
the Competition Council to the chairperson of the Competition
Council.
[13 March 2008; 12 May 2016]
Section 9.4 Liability for
a Failure to Provide Information, Provision of False Information,
Failure to Fulfil Lawful Requests Made by the Competition Council
and Breaking of a Seal
(1) The Competition Council is entitled to impose a fine
for:
1) a failure to provide information regarding the case within
the required time period and amount upon request of the
Competition Council or in the cases specified in laws and
regulations;
2) a failure to correct incomplete information regarding the
case within the required time period;
3) a failure to provide information regarding market
surveillance within the required time period and amount upon
repeated request of the Competition Council;
4) provision of false or misleading information;
5) a refusal to fulfil lawful requests made by officials of
the Competition Council;
6) breaking a seal that has been affixed in accordance with
the procedures laid down in Section 9, Paragraph five, Clause 4,
Sub-clause "g" of this Law.
(2) The Competition Council is entitled to impose a fine for
the infringements referred to in Paragraph one of this Section in
an amount up to one per cent of the annual net turnover of a
market participant or an association of market participants in
the last financial year for each, but not less than 50 euros for
each. Persons other than market participants or associations of
market participants shall be imposed a fine from 50 to 1400
euros.
(3) Net turnover in a financial year based on which the fine
is calculated shall be determined according to the Cabinet
regulations issued accordance with Section 12, Paragraph five of
this Law.
(4) The decision of the Competition Council on imposing a fine
referred to in Paragraph two of this Section may be appealed by
the addressee in accordance with the procedures laid down in
Section 8, Paragraph two of this Law.
[12 May 2016]
Section 10. Liability of Officials
and Employees of the Competition Council
(1) Officials and employees of the Competition Council, as
well as other persons engaged in execution of the tasks specified
in this Law are prohibited from disclosing or using information
coming to their knowledge in the performance of their service or
work duties or entrusted tasks, tasks for purposes other than
performance of their work (service) duties or execution of
specific work tasks. The prohibition to disclose or use
information coming to their knowledge in the performance of their
service or work duties or entrusted tasks shall continue to be
binding on officials and employees of the Competition Council, as
well as other persons engaged in execution of the tasks laid down
in this Law also after termination of legal relationship with the
Competition Council.
(2) Within two years after drafting or taking of decisions or
performing surveillance , monitoring, investigation, sanctioning
or any other activities laid down in this Law, an official of the
Competition Council is prohibited from, directly or indirectly,
becoming a representative of a private individual in respect of
whom the official has performed the abovementioned activities.
This restriction shall be binding in addition to the provisions
of the Law On Prevention of Conflict of Interest in Activities of
Public Officials.
(3) In accordance with the procedures laid down in laws and
regulations, the liability of the officials and employees of the
Competition Council in respect of violations of the
confidentiality clause and other provisions of this Law and any
damages caused by their unlawful action shall extend beyond their
legal relationship with the Competition Council.
(4) If an official or employee of the Competition Council,
also after termination of the legal relationship with the
Competition Council, has infringed any of the restrictions
specified in this Section and has gained any material benefits
from this, it shall be presumed that the abovementioned
activities have caused damage that can be measured in economic
terms and is proportional to the unlawfully earned income or
increase in value of economic benefits. If the respective
official or employee of the Competition Council, also after
termination of the legal relationship with the Competition
Council, fails to indemnify the damages incurred to the State,
the Competition Council shall take the necessary actions in order
to claim indemnification in accordance with the procedures laid
down in law.
(5) The Competition Council shall claim indemnification in
accordance with the Administrative Procedure Law, by issuing an
administrative act on indemnification of the damages, as well as
shall perform the actions specified in laws and regulations for
enforcement of the administrative act.
[12 May 2016]
Chapter
II.1
Permission to Perform Procedural
Actions
[12 May 2016]
Section 10.1 Jurisdiction
for Issuing a Permission
(1) A judge of a district (city) court on the basis of the
legal address of the Competition Council shall decide on the
warrant to perform the procedural actions referred to in Section
9, Paragraph five, Clauses 4, 5, 6, and 7 of this Law.
Section 10.2 Submission
for the Issuance of a Permission
(1) In a submission for the permission to perform the actions
referred to in Section 9, Paragraph five, Clauses 4 and 5 of this
Law, the Competition Council shall specify in respect of which
market participants or association of market participants or
persons the procedural actions need to be performed, the subject
and purposes of these actions, and, to the best of its knowledge,
what assets, information or documents are going to searched
for.
(2) In a submission for the permission to perform the acts
referred to in Section 9, Paragraph five, Clauses 6 and 7 of this
Law, the Competition Council shall specify the legal grounds and
the scope of the data to be stored or not to be disclosed.
Section 10.3 Procedures
for Giving a Warrant
(1) The judge shall, within 72 hours after having received a
submission from the Competition Council, examine this submission
which substantiates the necessity to perform procedural actions,
become acquainted with the case materials of the Competition
Council, hear out the representative of the Competition Council
and take a decision either to warrant the performance of
procedural actions or to refuse it.
(2) A true copy of the judicial warrant shall be sent to the
Competition Council within 24 hours from the moment of taking of
the decision.
Section 10.4 Warrant on
Procedural Actions
(1) In its decision to warrant the performance of the actions
referred to in Section 9, Paragraph five, Clauses 4 and 5 of this
Law, the judge shall specify in respect of which market
participants or association of market participants or persons the
procedural actions need to be performed, the subject and purposes
of these actions, and, to the best of his or her knowledge, what
assets, information or documents are going to searched for, as
well as the time period for performing procedural actions.
(2) In its decision to warrant the performance the procedural
actions referred to in Section 9, Paragraph five, Clauses 6 and 7
of this Law, the judge shall specify the market participant or
association of market participants or person in respect of which
information should be requested, and the scope of this
information.
(3) The warrant shall not include information not to be
disclosed in accordance with Section 26, Paragraph six of this
Law.
Section 10.5 Warrant on
Procedural Actions Issued as a Matter of Urgency
(1) If under the procedural actions referred to Section 9,
Paragraph five, Clause 4 or 5 of this Law justified information
has been obtained that assets, information or documents which
could serve as a proof to infringement of competition law are
being stored in non-residential premises, vehicles, flats,
structures, and other immovable and movable objects in the
ownership, possession or use of other persons, and if the assets,
information or documents that are being searched for could get
destroyed, hidden or damaged due to delay, the Competition
Council shall submit to the court an application requesting
issuing the permission to perform the procedural actions referred
to Section 9, Paragraph five, Clause 4 or 5 of this Law as a
matter of urgency.
(2) The judge shall, without delay and within two hours after
having received an application from the Competition Council,
examine this application which substantiates the necessity to
perform procedural actions and its urgency, become acquainted
with the case materials of the Competition Council, hear out the
representative of the Competition Council and give decision
either to warrant the permission to perform procedural actions or
to refuse it.
(3) The warrant shall contain the introductory part and the
operative part. The warrant shall be issued to the representative
of the Competition Council and shall be sent to the Competition
Council to its electronic mail address. A motivated warrant shall
be drawn up and sent to the Competition Council and the market
participant, association of market participants or the person in
respect of which the warrant has been issued, within three
working days.
(4) The warrant shall not include information not to be
disclosed in accordance with Section 26, Paragraph six of this
Law.
Section 10.6 Acquainting
Oneself with the Case Materials and Appeal of the Warrant
(1) The market participant, association of market participants
and the person regarding whom the warrant has been given in
accordance with Section 10.4 or 10.5 of
this Law, has the right to become acquainted with the case
materials after performance of procedural actions.
(2) A complaint regarding the judicial warrant may be
submitted to the Court President within 10 days from the date of
receipt of the warrant. Submission of a complaint shall not
suspend the performance of the procedural actions by the
Competition Council.
Section 10.7 Examination
of the Complaint
(1) The Court President shall examine the complaint within 10
days and, if necessary, hear out the submitter of the complaint.
Where the complaint has been submitted by a market participant,
association of market participants or a person, if necessary,
both the submitter of the complaint and the representative of the
Competition Council may be heard out.
(2) The decision taken by the Court President shall be final
and not subject to appeal.
(3) A complaint may be satisfied or rejected by the Court
President. When satisfying a complaint, the appealed warrant may
be revoked or amended in full or in part.
(4) Evidence obtained on the basis of the appealed warrant
that has been revoked or changed in full or in part shall not be
used in the case to the extent to which the warrant has been
found unlawful.
Chapter
III
Actions which Restrict Competition
Section 11. Prohibited Agreements
and Agreements which are Considered to be in Effect
(1) Agreements between market participants, which have as
their object or effect the hindrance, restriction or distortion
of competition in the territory of Latvia, are prohibited and
null and void from the moment of being entered into, including
agreements regarding:
1) the direct or indirect fixing of prices and tariffs in any
manner, or provisions for their formation, as well as regarding
such exchange of information as relates to prices or conditions
of sale;
2) restriction or control of the volume of production or
sales, markets, technical development, or investment;
3) the allocation of markets, taking into account territory,
customers, suppliers, or other conditions;
4) provisions in accordance with which the conclusion,
amendment or termination of a transaction with a third person is
made dependent on whether such third person accepts obligations
which, according to commercial usage, are not relevant to the
particular transaction;
5) the participation or non-participation in competitions or
auctions or regarding the provisions for such actions
(inactions), except for cases when the competitors have publicly
announced their joint tender and the purpose of such a tender is
not to hinder, restrict or distort competition;
6) the application of unequal provisions in equivalent
transactions with third persons, creating for them
disadvantageous conditions in terms of competition;
7) action (inaction), due to which another market participant
is forced to leave a relevant market or the entry of a potential
market participant into a relevant market is made difficult.
(2) Agreements that promote improvements in the production or
sale of products or economic progress and thereby benefit
consumers are considered to be in force and are exempt from the
prohibition referred to in Paragraph one of this Section and,
furthermore, such agreements:
1) do not impose on the market participants concerned
restrictions which are not necessary for the achievement of these
objectives;
2) do not afford the possibility of eliminating competition in
a substantial part of the relevant market.
(21) The market participant who indicates that the
agreement conforms to the requirements of Paragraph two of this
Section has an obligation to prove this.
(3) The market participants prior to entering into an
agreement, as well as prior to the entry into effect thereof, if
a case has not been initiated in respect of it, are entitled to
submit to the Competition Council a notification regarding the
relevant agreement. The Competition Council is entitled to
permit, or permit with conditions for a specified time period the
agreement thus notified, if the agreement conforms to Paragraph
two of this Section or to the criteria in accordance with which
specific agreements between market participants are exempted from
the prohibitions referred to in Paragraph one of this Section.
The procedures for the submission and examination of the
notification on an agreement between market participants shall be
specified by the Cabinet.
(4) The Cabinet shall determine the following:
1) separate agreements between market participants, which do
not significantly affect competition;
2) the criteria according to which separate agreements between
market participants are exempted from the prohibitions referred
to in Paragraph one of this Section.
[22 April 2004; 13 March 2008; 12 May 2016]
Section 12. Liability for the
Violation of Prohibited Agreements
(1) If the Competition Council determines that there is a
violation of Section 11, Paragraph one of this Law in the
activities of market participants, it shall take the decision to
establish a violation, and to impose a legal obligations and a
fine.
(2) The Competition Council is entitled to impose on market
participants fines in the amount of up to 5 per cent of their net
turnover for the previous financial year each, but not less than
350 euros each.
(3) The Competition Council is entitled to impose on market
participants fines in the amount of up to 10 per cent of their
net turnover for the previous financial year each, but not less
than 700 euros each.
(4) [12 May 2016]
(5) The Cabinet shall issue regulations regarding the
procedures for the imposition of fines which shall provide
special features for the calculation of the financial year net
turnover in separate cases, criteria for the specification of the
amount of a fine, and also mitigating and aggravating
circumstances.
(6) Fines calculated in accordance with the procedures laid
down in this Section shall be paid into the State basic
budget.
[22 April 2004; 13 March 2008; 12 September 2013; 12 May
2016]
Section 12.1 Leniency
Programme
(1) A leniency programme allows a market participant to
receive immunity from, or a reduction in, fines for its
involvement in the cartel for disclosing a secret cartel
agreement independently of the other market participants involved
in the cartel and in co-operation with the competition authority
during investigation thereof and also for voluntarily providing
information on the cartel and its role in the cartel.
(2) The Competition Council shall give immunity from a fine
for a cartel infringement, if:
1) the market participant was the first one to provide
evidence and other information related to a cartel infringement
supplying facts and circumstances that are sufficient for
initiating a case or detecting a cartel infringement;
2) the market participant has not performed any actions to
force other market participants to join the cartel or continue
participating in it;
3) at the moment of receiving an application the Competition
Council does not possess sufficient evidence that could be the
basis for initiating a case or detecting a cartel
infringement.
(3) The Competition Council shall reduce a fine for a cartel
infringement if the market participant:
1) provides evidence and other information related to a cartel
infringement that substantially supplements the evidence and data
possessed by the Competition Council;
2) provides evidence on another cartel infringement and the
Competition Council gives immunity from a fine for this cartel
infringement.
(4) The Competition Council shall either approve the
application requesting immunity from the fine or reduction of the
fine under the leniency programme or reject it with the same
decision which establishes the infringement referred to in
Section 11, Paragraph one of this Law or in Article 101(1) of the
Treaty on the Functioning of the European Union, and imposes
legal obligation and a fine.
(5) The information in the leniency application shall be a
restricted access information that may be disclosed only to the
participants of proceedings in the case initiated by the
Competition Council, in order to protect their rights and legal
interests.
(6) The decision of the Competition Council shall not include
information regarding the identity of those market participants
who have collaborated with the Competition Council under the
leniency programme.
(7) The Cabinet shall determine the procedures according to
which the Competition Council shall give immunity from a fine and
reduce the fine under the leniency programme, as well as the
requirements for the participants of the leniency programme.
[12 May 2016; 5 October 2017]
Section 13. Prohibition of the Abuse
of Dominant Position
(1) Any market participant who is in a dominant position is
prohibited from abusing such dominant position in any manner in
the territory of Latvia. Abuse of dominant position may also
occur as:
1) refusal to enter into transactions with other market
participants or to amend the provisions of a transaction without
an objectively justifiable reason, including unfair and
unjustified refusal to supply products or deliver services;
2) restriction of the amount of the production or sale of
products, the market or technical development without an
objectively justifiable reason to the detriment of consumers;
3) imposition of provisions according to which entering into,
amendment or termination of a transaction with another market
participant is made dependent on whether this market participant
undertakes additional obligations which, by their nature and
commercial use, do not pertain to the particular transaction;
4) direct or indirect imposition or application of unfair
purchase or selling prices or other unfair trading
provisions;
5) application of unequal provisions in equivalent contracts
with other market participants, by way of creating for them, in
terms of competition, disadvantageous conditions.
(2) [21 May 2015]
(3) [21 May 2015]
[13 March 2008; 18 June 2009; 21 May 2015]
Section 14. Liability for the Abuse
of Dominant Position
(1) If the Competition Council determines that there is a
violation of Section 13 of this Law in the activities of market
participants, the Council shall take the decision to establish a
violation, and to impose a legal obligation and a fine.
(2) The Competition Council is entitled to impose a fine in
the amount of up to 5 per cent of the net turnover for the
previous financial year each, but not less than 350 euros each,
on a market participant for the violation referred to in Section
13, Paragraph one of this Law.
(3) [12 May 2016]
(4) The Cabinet shall issue regulations regarding the
procedures by which fines are specified, which provide special
features for the calculation of the financial year net turnover
and procedure for the calculation of the amount of fine, taking
into account the gravity and the duration of the violation,
mitigating and aggravating circumstances, as well as specifying
the cases where there is the right to a reduction of the
fine.
(5) Fines calculated in accordance with the procedures laid
down in this Section shall be paid into the State basic
budget.
[13 March 2008; 12 September 2013; 21 May 2015; 12 May
2016]
Section 14.1 Obligation
to Ensure Free and Fair Competition
(1) An institution of direct and indirect administration, and
also a capital company in which a public person has decisive
influence is prohibited from hindering, restricting or distorting
competition with its actions, which may also occur as:
1) as the discrimination of market participants by creating
different conditions for competition;
2) conferring of advantages for the capital company in which a
public person has direct or indirect participation;
3) actions due to which another market participant is forced
to leave a relevant market or the entry or operation of a
potential market participant into a market is made difficult.
(2) To ensure compliance with Paragraph one of this Section,
the Competition Council shall negotiate with an institution of
direct and indirect administration, and also a capital company in
which a public person has decisive influence.
(3) The Competition Council shall investigate and examine a
case regarding the possible nonconformity of the actions with the
requirements of Paragraph one of this Section in accordance with
the procedures for the investigation and examination of
violations provided for in this Law.
(4) This Section shall be applied insofar as the specific
activity does not necessarily result from the requirements laid
down in other laws or Section 13 of this Law is not
applicable.
[28 March 2019 / Section shall come into force on 1
January 2020. See Paragraph 16 of Transitional
Provisions]
Section 14.2 Liability
for the Violation of the Rules for Free and Fair Competition
(1) If the Competition Council establishes nonconformity of
the actions of a capital company in which a public person has
decisive influence with the requirements of Section
14.1, Paragraph one of this Law, and the negotiations
regarding the ensuring of the fulfilment of these requirements
fail, it shall take the decision to establish a violation, and to
impose a legal obligation and a fine.
(2) Upon taking the decision referred to in Paragraph one of
this Section, the Competition Council cannot impose such legal
obligation which makes it impossible to fulfil the State
administration tasks, and also the autonomous functions of a
local government and State administration tasks delegated
thereto.
(3) The Competition Council is entitled to impose a fine in
the amount of up to 3 per cent of the net turnover for the
previous financial year, but not less than 250 euros, on capital
companies in which a public person has decisive influence for the
violation referred to in Section 14.1, Paragraph one
of this Law.
(4) The Cabinet shall issue regulations regarding the
procedures for the imposition of fines which shall provide
special features for the calculation of the financial year net
turnover in separate cases, criteria for the specification of the
amount of a fine, and also the circumstances mitigating and
aggravating the liability.
(5) Fines calculated in accordance with the procedures laid
down in this Section shall be paid into the State basic
budget.
[28 March 2019 / Section shall come into force on 1
January 2020. See Paragraph 16 of Transitional
Provisions]
Chapter
IV
Market Participant Merger Control
Section 15. Market Participant
Merger Provisions
(1) A merger of market participants is:
1) the merging of two or more independent market participants
in order to become one market participant (consolidation);
2) the joining of one market participant to another market
participant (acquisition);
3) such a situation where one or more natural persons who
already have a decisive influence over another market participant
or other market participants, or one or more market participants
acquire part or all of the fixed assets of another market
participant or other market participants or the right to use
such, or a direct or indirect decisive influence over another
market participant or other market participants. An acquisition
of assets or of the right to use such assets is considered to be
a merger if the acquisition of the assets or of the right to use
such assets increases the market share of the acquirer of the
aforementioned assets and the usage rights in any relevant
market;
4) such a situation where two or several natural persons
jointly or a single natural person simultaneously acquire a part
or all of the assets of two or several market participants or
obtain the right to use such assets, or a direct or indirect
decisive influence over two or several market participants.
(2) The market participants who have decided to merge in any
of the manners referred to in Paragraph one of this Section,
prior to merger shall submit a notification to the Competition
Council on the merger if the aggregate turnover in Latvia of the
participants in the merger in the last financial year has been
not less than 30 million euros, and the turnover in Latvia of at
least two participants in the merger in the last financial year
has been not less than 1.5 million euros for each.
(21) The Competition Council has the right, within
12 months following the implementation of the merger, to request
that the participants in the merger submit a notification on a
merger that does not conform to the notification provisions
referred to Paragraph two of this Section if both of the
following conditions exist:
1) the merger is taking place in the relevant market where the
participants in the merger operate, and their aggregate market
share in the particular market exceeds 40 per cent;
2) there is a cause for suspicion that the merger might result
in or strengthen a dominant position, or the competition in the
relevant market might be notably reduced.
(22) The market participants referred to in
Paragraph two of this Section are entitled to submit to the
Competition Council a short-form merger notification instead of
the full one if one of the following conditions exists:
1) none of the participants in the merger operates in a single
relevant market or in a market that is vertically related
thereto;
2) participants in the merger operate in a single relevant
market, and their aggregate market share does not exceed 20 per
cent;
3) participants in the merger operate in vertically related
markets, and the market share of each individual participant in
the relevant market does not exceed 30 per cent;
4) participants in the merger get a joint decisive influence
within the meaning of Paragraph one, Clause 3 of this Section
over another market participant who does not generate and does
not intend to generate turnover from selling goods or providing
services in the territory of Latvia;
5) a participant in the merger gets a decisive influence over
another market participant in a market where the participant in
the merger already has a joint decisive influence within the
meaning of Paragraph one, Clause 3 of this Section.
(23) If the Competition Council decides that such
merger of market participants of which a short-form merger
notification has been submitted requires additional
investigation, it may require the market participants to submit a
full-form merger notification.
(24) If the merger does not conform to the
conditions for submitting a notification referred to Paragraph
two of this Section, the market participants are entitled to:
1) request a written confirmation that the Competition Council
will not exercise the rights laid down in Paragraph
2.1 of this Section to request that the participants
in the merger submit a merger notification;
2) upon own initiative, submit to the Competition Council a
full-form or short-form merger notification.
(25) The Competition Council may exempt the market
participant from the obligation to submit a part of the
information in the full-form or short-form merger notification or
documents appended thereto, if such information or documents are
not necessary for examination of the notification.
(3) A merger of market participants, regarding which a
notification had to be given, but was not given, is illegal.
(4) Notifications need not be submitted to the Competition
Council in the following cases:
1) credit institutions or insurance companies the activities
of which include transactions with securities for own or other
funds, have time-limited ownership rights to market participant
securities, which they have acquired for further sale, if such
credit institutions or insurance companies do not utilise voting
rights created by the referred to securities in order to
influence the competitive activities of the relevant market
participant, or utilise the voting rights created by the referred
to securities in order to prepare the investment of fixed assets
or relevant securities only of the market participant, or a part
thereof, and such investments occur within one year after the
creation of voting rights. The Competition Council may extend the
referred to time period on the basis of a submission from the
relevant credit institution or insurance company, if it proves
that the relevant investment within one year was not
possible;
2) a liquidator or administrator acquires a decisive influence
in the case of the insolvency or liquidation of a market
participant.
(5) The Cabinet shall issue regulations regarding the
procedures according to which full-form and short-form merger
notifications are to be submitted and examined. Such regulations
may include additional conditions regarding the calculation of
the turnover, including special requirements in respect of credit
institutions and insurance companies.
(6) Market participants shall pay a State fee for the
evaluation of a merger. The Cabinet shall determine the
procedures for paying the State fee for the evaluation of a
merger, the amount of the State fee, as well as the cases when
the State fee shall not be reimbursed.
[22 April 2004; 13 March 2008; 14 November 2008; 18 June
2009; 12 September 2013; 12 May 2016]
Section 16. Procedures for the
Examination of Notifications on Mergers of Market
Participants
(1) The Competition Council shall, within one month from the
receipt of a full-form merger notification or a short-form merger
notification in accordance with procedures specified by the
Cabinet, examine the notification and take one of the decisions
referred to in Paragraph three or four of this Section, or the
decision to commence additional investigation.
(11) If, within 45 days from the date of submission
of a full-form or short-form merger notification, a market
participant does not receive from the Competition Council the
decision referred to in Paragraph three or four of this Section
or the decision to commence additional investigation, the
relevant merger shall be deemed to be permitted.
(2) If the Competition Council has taken the decision to
commence additional investigation, the Competition Council,
within four months from the date of receipt of the full-form
merger notification or within three months from the date of
receipt of the short-form merger notification, shall take one of
the decisions referred to in Paragraph three or four of this
Section. The Competition Council is entitled to, upon a request
of the participants in the merger or upon own initiative, extend
by 15 working days the term for taking the decision referred to
in Paragraph three of this Section with a purpose to evaluate the
binding provisions.
(3) The Competition Council by its decision shall prohibit
mergers as a result of which a dominant position is created or
strengthened, or which may significantly reduce competition in
any relevant market. The Competition Council is entitled to
permit such mergers, determining binding provisions for the
relevant market participants, which prevents the negative
consequences of the merger in relation to competition.
(4) If the merger of market participants of which a
notification has been given does not cause the consequences
referred to in Paragraph three of this Section, the Competition
Council shall take the decision to permit the merger.
(5) If the Competition Council after the commencement of
additional investigation, within four months from the date of
receipt of the full-form merger notification, or within three
months from the date of receipt of the short-form merger
notification has not taken one of the decisions referred to in
Paragraph three or four of this Section, the relevant merger of
market participants shall be deemed to be permitted.
(6) The Competition Council is entitled to take the decisions
referred to in Paragraph three of this Section also in respect of
such mergers of market participants on which notification should
have been given in accordance with Section 15, Paragraph two or
2.1 of this Law, but such notification was not
given.
[22 April 2004; 13 March 2008; 12 May 2016]
Section 17. Liability for Illegal
Mergers of Market Participants
(1) If a notification was not given in the cases specified in
this Law or an unlawful merger of market participants has
occurred, which is contrary to a decision of the Competition
Council taken in accordance with the procedures laid down in
Section 16, Paragraph three of this Law, the Competition Council
is entitled to take the decision to impose a fine on the new
market participant or on the acquirer of a decisive influence of
up to three per cent of its net turnover in the last financial
year.
(2) The payment of a fine does not release the market
participants concerned from the obligation to fulfil the
provisions of this Law and the decisions of the Competition
Council. The forced execution of the binding provisions imposed
by the decision of the Competition Council shall be performed in
accordance with the procedures for forced execution of legal
obligations laid down in Section 8.1 of this Law.
(3) Fines calculated in accordance with the procedures laid
down in this Section shall be paid into the State basic
budget.
[12 May 2016]
Chapter V
Unfair Competition
Section 18. Prohibition of Unfair
Competition
(1) Unfair competition is prohibited.
(2) Actions, as the result of which laws and regulations or
fair commercial practices are violated and which have created or
could create a hindrance, restriction or distortion of
competition, shall be deemed to be unfair competition.
(3) Unfair competition may also occur in the form of the
following activities if as a result of such activities a
hindrance, restriction or distortion of competition has been
created or could have been created:
1) the use or imitation of a legally used name, distinguishing
marks or other features of another market participant (whether
existing, having ceased its activities or reorganised) if such
use may be misleading as regards the identity of the market
participant;
2) the imitation of the name, external appearance, labelling,
or packaging of products produced or sold by another market
participant, or the use of trademarks, if such imitation or use
may be misleading as regards the origin of the products;
3) the dissemination of false, incomplete or distorted
information regarding other market participants or their
employees, as well as, in respect of the products produced or
sold by such a market participant, the economic significance,
quality, form of production, characteristics, quantity,
usefulness, prices, their formation and other provisions, which
may cause losses to this market participant;
4) the acquisition, use or distribution of information, which
includes the commercial secrets of another market participant,
without the consent of such participant;
5) the coercion of employees of another market participant
with threats or bribery in order to create advantages for one's
own economic activity, thereby causing losses to this market
participant.
Section 18.1 Competence
of the Court when Examining Cases of Violating the Prohibition of
Unfair Competition
The violations laid down in Section 18 of this Law shall be
examined by a court.
[14 November 2008]
Section 19. Liability for Unfair
Competition
[14 November 2008]
Chapter
VI
Application of Competition Law in Civil Actions
Section 20. Competence of the
Courts
(1) Concurrently with the Competition Council, a court may
also determine a violation of this Law. Cases regarding a
violation of this Law or an infringement of European Union
competition law and compensation for losses shall be examined by
the Latgale Suburb Court of Riga City.
(2) The court in its judgement on the violation of this Law
and infringement of European Union competition law may impose one
or several of the following obligations:
1) to terminate and prohibit actions which violate this Law
and infringe European Union competition law;
2) to take actions that prevent the violation of this Law and
infringement of European Union competition law;
3) to duly compensate for the infringement.
[12 May 2016; 5 October 2017]
Section 20.1 Examination
of the Cases Regarding Violations of this Law and Infringement of
European Union Competition Law
(1) The court which has accepted an application and initiated
the case regarding an violation of this Law and infringement of
European Union competition law, shall, within seven days from the
date of initiation of the case, send a true copy (copy) of the
application and the decision to initiate the case to the
Competition Council.
(2) The Competition Council may, upon its own initiative or
upon initiative of the court, provide an opinion in the case
concerning the aspects for the application of the European Union
competition law. The Competition Council has the right to become
acquainted with the case materials prior to providing its
opinion.
(3) A court shall, within seven days after drawing up of a
full judgement in a case regarding an infringement of European
Union competition law, send a true copy (copy) of the judgement
to the Competition Council and the European Commission, whereas
in a case regarding an infringement of this Law - to the
Competition Council.
[12 May 2016]
Section 21. Compensation for
Losses
(1) A person who has suffered losses due to an infringement of
competition law is entitled to request and receive compensation
for losses from the infringer, including the lost profit and
interest, from the day such losses have incurred until the day
the compensation for losses has been paid in order to ensure such
condition as the person would have had if the infringement of
competition law would not have been committed. If it is
practically impossible to determine the amount of losses caused
as the result of an infringement of competition law or it is
excessively difficult to determine it precisely, the court shall
determine the amount of losses on the basis of the evidence
included in the case.
(2) Upon bringing actions for damages, an infringement of
competition law within the meaning of this Chapter shall be an
infringement of the Competition Law or Article 101 or 102 of the
Treaty on the Functioning of the European Union or an
infringement of competition law of the respective Member State.
Competition law of a Member State shall be law with the same main
objective as defined in Articles 101 and 102 of the Treaty on the
Functioning of the European Union and that is applied in one and
the same case alongside with the European Union competition law
in accordance with Article 3(1) of Council Regulation (EC) No
1/2003 of 16 December 2002 on the implementation of the rules on
competition laid down in Articles 81 and 82 of the Treaty (Text
with EEA relevance), excluding law by which criminal sentences
are imposed on natural persons, except for cases when such
criminal sentences serve as means by which competition rules
applying to a market participant are exercised.
(3) If the infringement is a cartel agreement, it is presumed
that the infringement has caused a damage, as a result of which
the price has been raised by 10 per cent, unless proved
otherwise.
(4) Infringers shall be jointly liable for losses which have
incurred due to a jointly committed infringement of competition
law, except for the cases referred to in Paragraphs five and
seven of this Section.
(5) A small or medium-sized enterprise shall be liable for the
caused losses only in respect of its direct and indirect
purchasers or suppliers, if it complies with the following
conditions:
1) its market share in the respective market throughout the
entire period of the infringement of competition law has been
less than five per cent;
2) the application of joint liability referred to in Paragraph
four of this Section would irretrievably jeopardise its economic
viability and would cause complete loss of the value of the
assets of such enterprise.
(6) The exception referred to in Paragraph five of this
Section shall not apply to an infringer who has previously
committed an infringement of competition law or who has organised
or has led an infringement of competition law, or who has forced
other market participants to commit an infringement of
competition law.
(7) An infringer who within the scope of the leniency
programme has received immunity from fines shall be jointly
liable for the caused losses:
1) only in respect of its direct or indirect purchasers or
suppliers;
2) in respect of other persons who are not its direct or
indirect purchasers or suppliers only if it is impossible to
claim full compensation for losses from the other market
participants who participated in committing an infringement of
competition law.
(8) An infringer who within the scope of the joint liability
has compensated losses caused to the person who suffered losses
is entitled to claim the respective compensation from any other
infringer. The referred to compensation shall be determined by
taking into account the degree of liability of the relevant
infringer concerning the losses caused as the result of the
infringement of competition law.
(9) The amount of the respective compensation which the
infringer, who has received immunity from fines within the scope
of the leniency programme, provides to other infringers must not
exceed the amount of losses caused to its direct or indirect
purchasers or suppliers. If the amount of the respective
compensation, which is provided by the referred to infringer to
other infringers, applies to compensation for losses to other
persons who are not the direct or indirect purchasers or
suppliers of the infringer, the amount of the respective
compensation to be provided shall be determined by taking into
account the degree of liability of the referred to infringer
concerning the losses caused as the result of the infringement of
competition law.
[13 March 2008; 12 May 2016; 5 October 2017]
Section 21.1 Passing-on
of Overcharges
(1) The rights referred to in Section 21, Paragraph one of
this Law shall apply also to the rights to receive compensation
for lost profit in relation to full or partial passing-on of
overcharges. The court is entitled to determine the share of the
passed-on overcharges in the form of an estimate. The rights to
compensation for losses as the result of passing-on of
overcharges shall be applicable also to supplies made to the
infringer.
(2) If the defendant, in defending an action, indicates that
the claimant has passed-on the entire or part of the overcharges
incurred as the result of the infringement of competition law to
other persons, it shall have the obligation to prove it.
(3) Where the existence of an action for damages or the amount
of damages to be awarded depends on whether or to what degree an
overcharge is passed on to the claimant, the claimant down the
level of the supply chain shall prove the occurrence and amount
of such passing-on of the overcharges. The claimant has the right
to request the court to order disclosure of evidence from the
defendant or from a third party according to the procedures
specified in the Civil Procedure Law.
(4) It shall be considered that the indirect purchaser has
proven the passing-on of the overcharges on to him or her, if the
indirect purchaser proves that:
1) the defendant has committed an infringement of competition
law;
2) the infringement of competition law has resulted in an
overcharge to the direct purchaser of the defendant, and
3) the indirect purchaser has purchased goods subject to the
infringement of competition law or goods which have derived
therefrom or which contain such goods.
(5) Paragraph four of this Section shall not apply to cases
where the defendant may prove that the overcharge was not passed
on to the indirect purchaser or was not fully passed on.
[5 October 2017]
Section 21.2 Actions for
Damages by Claimants from Different Levels in the Supply
Chain
In order to avoid that actions for damages by claimants from
different levels in the supply chain lead to a multiple liability
or to an absence of liability of the infringer, the courts where
actions for damages are brought in assessing whether the burden
of proof resulting from the application of Section
21.1, Paragraphs two, three, four, and five of this
Law is satisfied, shall take into account:
1) actions for damages that are related to the same
infringement of competition law, but that are brought by
claimants from other levels in the supply chain;
2) rulings resulting from actions for damages as referred to
in Clause 1 of this Section;
3) relevant information in the public domain regarding the
infringement of competition law.
[5 October 2017]
Section 21.3 Dispute
Resolution with Settlement and Impact of Settlement on Subsequent
Actions for Damages
(1) As long as a dispute deriving from an infringement of
competition law is resolved through agreement to reach a
settlement, the limitation period for bringing an action for
damages shall be suspended. Suspension of the limitation period
shall apply only to the parties currently or previously involved
or represented in the dispute resolution in order to reach a
settlement.
(2) If a dispute deriving from an infringement of competition
law is resolved with a settlement, the scope of action for
damages shall be reduced by the share of the infringer who has
reached the settlement.
(3) The person who has suffered harm caused by an infringement
of competition law and has reached the settlement may direct the
remaining part of the claim for damages only against the
infringers who have not reached the settlement. The infringers
who have not reached the settlement are not entitled to claim
contribution for the remaining share from the infringer who has
reached the settlement.
(4) Unless the contrary has been explicitly stated in the
settlement, the person who has suffered harm caused by an
infringement of competition law and has reached the settlement
may direct the remaining part of the action for damages against
the infringer who has reached the settlement, if recovery of
losses from the infringers who have not reached the settlement is
not possible.
(5) Any losses which have been compensated in compliance with
the previous settlement reached by the respective infringer shall
be taken into account upon determining the sum of contribution
which may be retrieved by one of the infringers from any other
infringer in accordance with the degree of liability thereof
concerning the losses incurred as the result of the infringement
of competition law.
[5 October 2017]
Section 21.4 Start of
Limitation Period and Suspension of Limitation Period
(1) The limitation period for an action for damages shall be
counted from the day on which the infringement of competition law
has ceased to exist and the claimant is aware of or whether there
was basis to consider that he or she was aware of:
1) the conduct of the infringer and that the infringement is
an infringement of competition law;
2) losses caused as a result of an infringement of competition
law;
3) the identity of the infringer.
(2) The limitation period shall be suspended for a period
until the competition authority assesses the infringement of
competition law subject to action for damages. The suspension of
limitation period shall end one year after the decision on the
infringement has become effective and has become non-appealable
or the referred to actions have been ceased otherwise.
[5 October 2017]
Section 21.5 Disclosure
of Evidence in Cases on Compensation for Losses Regarding
Infringements of Competition Law
(1) A competition authority shall submit to a court, which
hears an action for damages regarding infringements of
competition law, the specified evidence only after the
competition authority has completed the investigation of a
case:
1) information which has been prepared by a person especially
for the needs of a competition authority;
2) information which a competition authority has prepared and
sent to the parties;
3) withdrawn settlement applications.
(2) If in the cases on compensation for losses regarding
infringements of competition law the court orders disclosure of
evidence from the case records of the Competition Council, the
Competition Council at its own or court's initiative is entitled
to provide an opinion on the proportionality of a claim and
impact on the effective application of competition law.
[5 October 2017]
Chapter
VII
Procedures for the Investigation of a Case
[22 April 2004]
Section 22. Initiation of a Case
(1) The Competition Council shall initiate a case regarding
the violation of this Law upon its own initiative, considering
the priorities, the impact of the potential violation on
competition and important public interests.
(2) The market participants and entities are entitled to
provide information to the Competition Council regarding the
facts on the basis of which the violation of this Law may be
established.
[12 May 2016]
Section 23. Initiation of a Case
Based on a Submission
[12 May 2016]
Section 24. Initiation of a Case
Based on an Initiative of the Competition Council
[12 May 2016]
Section 25. Initiation of a Case
Based on a Report from Another Institution
[12 May 2016]
Section 26. Investigation of a
Case
(1) After the initiation of a case, the Competition Council
shall obtain the information that is necessary to take a
decision. The information that refers to the relevant case and is
obtained during market surveillance shall be attached to such
case and may be of importance to the case as evidence.
(2) A person shall provide the requested information not later
than within seven days from receipt of the request. The person
shall, without delay, provide such information that has been
requested while carrying out the market surveillance activities
and taking procedural actions for violations of laws laid down in
Section 9, Paragraph five, Clauses 3, 4, and 5 of this Law, and
in the preparation of which a special compilation or analytical
work is not necessary.
(3) If information is requested, in the preparation of which
special compilation or analysis activities are necessary, and the
submitter of the information due to objective reasons cannot
prepare the requested information within the specified time
period, he or she shall notify the Competition Council thereof in
writing, indicating such reasons and the date when the
information shall be submitted. The competition Council, taking
into account the referred to notification, may specify another
time period for the submission of information.
(4) If the information is requested from a possible infringer
of the Competition Law, the Competition Council shall inform the
submitter thereof of the Section of the Competition Law, which
has been possibly violated.
(5) The Competition Council may combine in one record several
cases regarding one and the same violation of law in the
operations of one and the same possible infringer if the
combination of the cases facilitates quicker and more objective
examination thereof.
(6) While the information necessary for taking the decision is
being obtained, the Competition Council does not have the
obligation to make materials of the case accessible if this may
have a negative effect on the performance of the tasks specified
in the Law at an adequate level. The Competition Council shall
inform the participants in the process in writing that
information necessary for taking the decision has been
obtained.
(61) While the information necessary for taking the
decision is obtained, the Competition Council may restrict the
right of the natural person as a data subject to access the
information whether the personal data of the specific person is
being processed. In such case, the Competition Council shall,
without undue delay, but not later than within a month, inform
the data subject in writing of the refusal to provide access or
restricting the access to personal data and of the reasons for
the refusal or restriction. In such case, the person has the
right to submit a complaint to the State Data Inspectorate or
bring an action before a court.
(7) The participants in the process may become acquainted with
the case, express their own point of view and submit additional
information within 20 days after receipt of the notification
specified in Paragraph six of this Section. The Competition
Council need not take into account information, which has been
received after the end of such time period. Upon a request of the
addressee, the Competition Council shall hear out its oral
explanations prior to taking a decision that may not be in its
favour.
(8) The information in the case shall be regarded as internal
use information until the decision is taken, and it may be
examined only by the persons to whom the officials of the
Competition Council present the relevant materials.
(9) A natural person has the right to submit a request
regarding the processing of its personal data and to receive a
reply indicating whether any actions and what type of actions
will be taken in relation to the request of the data subject
without undue delay, but not later than within a month after the
request has been received by the Competition Council. The
Competition Council can refuse to satisfy the claim included in
the request, if in the result of its satisfaction the work of the
Competition Council would be delayed or rights of other persons
would be violated.
(10) A natural person has the right to request the Competition
Council to supplement or correct the data of this person
indicated inaccurately or incompletely. The Competition Council
shall not inform the data subject in writing of the refusal to
correct or supplement the personal data or of the reasons for the
refusal. The request shall be included in the case materials and
may be considered when taking the decision.
(11) The personal data of a natural person together with case
materials shall be stored in accordance with the laws and
regulations governing the archiving requirements. The personal
data of a natural person stored in electronic storage mediums
shall be deleted without undue delay, but not later than within a
month after the day when the final decision of the Competition
Council in the case has become uncontestable.
[13 March 2008; 12 May 2016; 28 March 2019]
Section 26.1 Assignment
of the Status of Restricted Access Information to Information to
be Submitted
(1) In order for the information or a part thereof to be
submitted to be assigned the status of restricted access
information, the submitter of information shall clearly indicate
the relevant documents and a justification for the assignment of
such status.
(2) If the submitter of information has not fulfilled the
requirements specified in Paragraph one of this Section or the
proposal to assign the status of restricted access information to
the specific information is unjustified, the Competition Council
shall notify the submitter of information thereof.
(3) If the deficiencies referred to in Paragraph two of this
Section are not eliminated within seven days from the date of
receipt of a notification from the Competition Council, the
submitted information may, in accordance with the procedures laid
down in the Freedom of Information Law, be protected only as
information for internal use. The Competition Council shall
notify the submitter of information thereof.
(4) The Competition Council may request that the person the
information submitted by whom needs to be assigned the status of
restricted access information append to the abovementioned
information a copy of generally accessible information which does
not contain restricted access information, including by
anonymising the personal data.
[13 March 2008; 12 May 2016; 28 March 2019]
Section 27. Time Period for the
Taking of a Decision
(1) The Competition Council shall take a decision within six
months from the day of the initiation of a case.
(2) If due to objective reasons the six month time period
cannot be met, the Competition Council may extend it for a period
of up to one year counting the time period from the day of the
initiation of a case.
(3) If prolonged fact-establishing is required in the case,
the Competition Council with a justified decision may extend the
time period for taking a decision to a period not exceeding two
years from the day of the initiation of a case.
Section 27.1 Validity of
Competition Council Decisions
Competition Council decisions shall enter into effect upon
notification thereof. An appeal against a decision shall not
suspend the execution of the decision, except in the part thereof
regarding the imposition of a fine.
[13 March 2008]
Section 27.2 Termination
of Investigating a Case with a Written Commitment
(1) If a market participant commits itself in writing to
fulfil certain legal obligations that prevent hindrance,
restriction or distortion of competition, the Competition
Council, having evaluated the actual and legal circumstances of
the case and due to rationality considerations, may take a
decision to terminate the investigation in the case and to impose
legal obligations.
(2) If the market participant fails to fulfil the legal
obligations to which it has committed itself in writing, forced
execution shall be performed in accordance with the procedures
laid down in Section 8.1 of this Law.
(3) The Competition Council may resume a case terminated in
accordance with Paragraph one of this Section.
(4) When resuming the investigation of a case, the time period
for the taking of a decision commences on the date of the
resumption of investigation of the case.
[13 March 2008; 12 May 2016]
Section 27.3 Entering
into an Administrative Contract
(1) The Competition Council shall enter into an administrative
contract without a consent of a superior authority.
(2) Submission regarding the compliance of the administrative
contract with legal norms, the validity thereof, the entry into
or the correctness of the fulfilment shall be examined in
accordance with the procedures laid down in Section 8, Paragraph
two of this Law.
(3) Appealing of an administrative contract with which legal
proceedings have been terminated shall not suspend its
enforcement.
[12 May 2016]
Chapter
VIII
Application of European Union Competition Law
[22 April 2004]
Section 28. Legislation to be
applied in a Case regarding the Possible Infringement of European
Union Competition Law
(1) The Competition Council shall investigate and examine a
case regarding the possible infringement of European Union
competition law in accordance with the procedures for the
investigation and examination of possible infringements of this
Law provided for in this Law and other laws and regulations.
(2) For the infringement of European Union competition law,
the Competition Council shall impose a penalty in accordance with
Sections 12 and 14 of this Law and Cabinet regulations regarding
the procedures for the imposition of fines, which are issued in
accordance with Section 12, Paragraph five and Section 14,
Paragraph four of this Law.
(3) When applying European Union competition law, the term
"market participant" shall be understood as the term
"undertaking" in European Commission decisions and in European
Court of Justice judgements.
(4) In the examination of a case regarding an infringement of
European Union competition law, this Law shall also be
applied.
[13 March 2008; 12 May 2016]
Section 29. Reduction of a Fine for
Individual Infringements of European Union Competition Law
(1) The Competition Council shall give immunity from a fine
for a market participant or reduce the imposed fine if the market
participant, upon own initiative, reports a cartel agreement to
the Competition Council, which violates Article 101(1) of the
Treaty on the Functioning of the European Union.
(2) The fine referred to in Paragraph one of this Section
shall be reduced or an immunity from a fine shall be given for a
market participant in accordance with Section 12.1 of
this Law.
[12 May 2016]
Section 30. Interim measures
(1) If the Competition Council has evidence at its disposal,
which testifies to the possible infringement of European Union
competition law, and non-termination of this infringement may
cause significant and irreversible harm to competition, the
Competition Council may take a decision on interim measures.
(2) The means of interim measures is a decision, which imposes
an obligation upon market participants within a specified time
period to perform specific activities or prohibits specific
activities.
(3) The decision on an interim measure may be appealed by the
participant of the proceedings, in respect of which the interim
measure has been issued, to the District Administrative Court
within 10 days after the date of entering into effect
thereof.
(4) A decision on interim measures shall be in effect until
the moment when the final decision of the Competition Council in
the case becomes uncontestable.
(5) Forced execution of the binding provisions imposed by the
interim measure shall be performed in accordance with the
procedures for forced execution of legal obligations laid down in
Section 8.1 of this Law.
[12 May 2016]
Section 31. Appeal of a Decision on
Interim Measures
(1) A court shall examine an application for a decision on
interim measures within 14 days.
(2) An appeal of a decision on interim measures shall not
suspend the effect of the decision on interim measures and its
enforcement.
(3) A court decision on an application for a decision on
interim measures cannot be appealed and it shall enter into
effect at the moment of its taking.
Section 32. Performance of European
Commission Procedural Actions in the Territory of Latvia
(1) A district (city) judge according to the legal address of
the Competition Council shall decide on giving the permission to
the European Commission to perform the procedural actions
provided for in Article 21(1) of Council Regulation No 1/2003.
The procedures for the giving a judicial warrant and the validity
thereof are laid down in Chapter II.1 of this Law.
(2) Both the European Commission and the Competition Council
on behalf of the European Commission are entitled to submit an
application for the receipt of the permission provided for in
Paragraph one of this Section.
[13 March 2008; 12 May 2016]
Section 33. Assistance in the
Preparation and Performance of European Commission Procedural
Actions
(1) The Competition Council shall provide the necessary
assistance to the European Commission for the preparation and
performance of the activities provided for in Articles 20 and 21
of Council Regulation No 1/2003.
(2) The State police shall ensure the necessary assistance to
the European Commission if a market participant resists to the
procedural actions provided for in Article 20(2) and Article
21(1) of Council Regulation No. 1/2003.
(3) Upon a request of the European Commission, the Competition
Council, on the basis of a judicial warrant, shall take the
actions referred to in Section 9, Paragraph five, Clause 4 of
this Law. The procedures for the giving of a judicial warrant and
the validity thereof are laid down in Chapter II.1 of
this Law.
[13 March 2008; 12 May 2016]
Section 34. Co-operation with
Competition Authorities of other Member States
(1) Upon a request of a competition authority of another
Member State in a case regarding a possible infringement of
European Union competition law, the Competition Council may take
the actions referred to in Section 9, Paragraph five of this Law
in relation to market participants existing in the territory of
Latvia in accordance with the procedures laid down in this Law
and other laws and regulations.
(2) Representatives of the competition authority of another
Member State are entitled to participate in the performance of
the actions referred to in Section 9, Paragraph five of this
Law.
[13 March 2008; 12 May 2016; 5 October 2017]
Section 35. Duty of a Court
[12 May 2016]
Transitional
Provisions
1. With the coming into force of this Law, the Competition Law
(Latvijas Republikas Saeimas un Ministru Kabineta
Ziņotājs, No. 16, 1997; No. 2, 2000) is repealed.
2. Until the adoption of the relevant Cabinet regulations
referred to in this Law, but not later than six months after the
adoption of this Law, the following Cabinet regulations issued in
accordance with the Competition Law shall be in force insofar as
they are not in contradiction to this Law:
1) Cabinet Regulation No. 444 of 30 December 1997, Procedures
for the Examination of the Violations of the Competition Law;
2) Cabinet Regulation No. 37 of 3 February 1998, Procedures by
which Agreements between Market Participants are Acknowledged as
in Effect;
3) Cabinet Regulation No. 73 of 3 March 1998, Procedures for
the Submission and Examination of Notifications on the Merger of
Undertakings (Companies);
4) Cabinet Regulation No. 74 of 3 March 1998, Regulations on
Exclusive Distribution Agreements and Exclusive Purchasing
Agreements Exempt from Prohibited Agreements Prescribed by the
Competition Law;
5) Cabinet Regulation No. 341 of 8 September 1998, Regulations
on Agreements on Specialisation in Production Exempt from
Prohibited Agreements Prescribed by the Competition Law;
6) Cabinet Regulation No. 52 of 16 February 1999, Regulations
on the Exemption of Franchise Agreements from the Prohibition of
Agreements by the Competition Law;
7) Cabinet Regulation No. 53 of 16 February 1999, Regulations
on the Exemption of Agreements on Joint Research and Development
from the Prohibition of Agreements by the Competition Law;
8) Cabinet Regulation No. 122 of 23 March 1999, Regulations on
Agreements on Patents and Know-how Licenses Exempt from
Prohibited Agreements Prescribed by the Competition Law;
9) Cabinet Regulation No. 147 of 20 April 1999, Regulations on
the Exemption of Automobile Distribution and Servicing Agreements
from the Prohibition of Agreements by the Competition Law;
10) Cabinet Regulation No. 260 of 20 July 1999, Regulations on
the Exemption of Agreements in the Field of Insurance from the
Prohibition of Agreements Prescribed by the Competition Law;
11) Cabinet Regulation No. 284 of 22 August 2000, Regulations
on the Exemption of Agreements of Carriers Engaged in Air
Transport from the Prohibition of Agreements Prescribed by the
Competition Law;
12) Cabinet Regulation No. 50 of 6 February 2001, Regulations
on the Exemption of Agreements of Liner Shipping Companies from
the Prohibition of Agreements Prescribed by the Competition
Law.
3. The Competition Council referred to in this Law is the
successor in law and interest of the Competition Council, which
was established and operated in accordance with the Competition
Law of 18 June 1997.
4. Until the day of entry into force of new Cabinet
regulations, but not longer than 1 November 2004, the following
Cabinet regulations shall be applicable insofar as they are not
in conflict with this Law:
1) Cabinet Regulation No. 22 of 20 January 2003, Procedures
for Submission and Examination of Notification Regarding Market
Participant Mergers;
2) Cabinet Regulation No. 468 of 19 August 2003, Procedures
for the Calculation of Fines for the Violations referred to in
Section 11, Paragraph One and Section 13 of the Competition
Law.
[22 April 2004]
5. The new wording of Section 1, Clause 1 (explanation of the
term "dominant position"), and also the new wording of Section 13
(prohibition of the abuse of the dominant position) and the new
wording of Section 14 (liability for the abuse of the dominant
position) of this Law shall enter into force 1 October 2008.
[13 March 2008]
6. Until 1 October 2008, the Cabinet shall issue the
regulations referred to in Section 14, Paragraph four of this Law
regarding the procedures for determining the fines in cases where
dominant position has been abused, which provide specific
features for the calculation of net turnover for the financial
year, and set out the procedures for the calculation of fines, as
well as specify the cases where there is title to a reduction in
the fine. Until the day of entry into force of the relevant
regulations, Cabinet Regulation No. 862 of 19 October 2004,
Procedures for the Calculation of Fines for the Violations
referred to in Section 11, Paragraph one and Section 13 of the
Competition Law, shall be applicable insofar as it is not in
contradiction to this Law.
[13 March 2008]
7. The Cabinet shall issue the following regulations until 1
October 2008:
1) the regulations referred to in Section 11, Paragraph three
of this Law setting out the procedures for the submission and
examination of notifications regarding the agreements of market
participants;
2) the regulations referred to in Section 11, Paragraph four,
Clause 1 of this Law that specify those agreements of separate
market participants that do not have a significant influence on
competition;
3) the regulations referred to in Section 11, Paragraph four,
Clause 2 of this Law which specify the criteria in accordance
with which individual agreements between market participants are
exempted from the prohibition of agreements referred to in
Section 11, Paragraph one of this Law.
[13 March 2008]
8. Until the day of entry into force of the Cabinet
regulations referred to in Paragraph 7 of these Transitional
Provisions, but not later than 1 October 2008, the following
regulations shall be applicable insofar as they are not in
contradiction to this Law:
1) Cabinet Regulation No. 699 of 16 December 2003, the
Procedures by Which the Competition Council Permits Agreements
referred to in Section 11, Paragraph One of the Competition
Law;
2) Cabinet Regulation No. 259 of 25 June 2002, Regulations on
the Exemption of Agreements Entered Into in the Field of Domestic
Carriage by Rail and by Road from the Prohibition of Agreements
Prescribed by the Competition Law;
3) Cabinet Regulation No. 434 of 27 April 2004, Regulations
Regarding Vertical Agreement Exemption from the Agreement
Prohibition Specified in Section 11, Paragraph One of the
Competition Law;
4) Cabinet Regulation No. 317 of 25 April 2006, Regulations
Regarding Exemption of Separate Horizontal Co-operation
Agreements from the Agreement Prohibition Specified in Section
11, Paragraph One of the Competition Law.
[13 March 2008]
9. The Cabinet shall, until 1 October 2008, issue the
regulations referred to in Section 15, Paragraph five of this
Law, which specify the procedures for the submission and
examination of the full-form notification and the short-form
notification in the event of a merger of market participants.
Until the day of entry into force of the relevant regulations,
but not later than until 1 October 2008, Cabinet Regulation No.
897 of 26 October 2004, Procedures for the Submission and
Examination of a Notification regarding a Merger of Market
Participants, shall be applicable.
[13 March 2008]
10. The Competition Council shall complete the examination of
cases regarding the possible violation of the prohibition of
unfair competition in accordance with the procedures of
administrative proceedings.
[14 November 2008]
11. Amendments to Section 5, Paragraphs one and six of this
Law (regarding the reduction in the number of members of the
Competition Council) shall come into force on 1 March 2010.
[1 December 2009]
12. The Cabinet, complying with the requirements of the State
Civil Service Law and other laws and regulations, shall take the
necessary actions to ensure that, from 1 March 2010, the
Competition Council shall be composed of its Chair and two
members of the Competition Council.
[1 December 2009]
13. Violations committed up to 31 December 2015 by abusing the
dominant position in retail trade shall be examined in accordance
with the procedures laid down in this Law and in accordance with
the provisions of laws and regulations regarding the imposition
of fines that were in force until 31 December 2015.
[21 May 2015]
14. Until 31 December 2016, the Cabinet shall issue the
regulations referred to in Section 12.1, Paragraph
seven of this Law.
[12 May 2016]
15. If a member of the Competition Council has started
fulfilling the duties of office by 15 June 2016 and continues to
fulfil them thereafter, his or her term of office shall be
counted from the day when the Cabinet order on his or her
appointment as a member of the Competition Council comes into
force. The restriction laid down in this Law which prevents a
member of the council from being appointed to the office more
than two times in succession shall be counted from the beginning
of the term of office of a council member.
[12 May 2016]
16. Amendments regarding the supplementation of Section 6,
Paragraph one of this Law with Clause 6, and also regarding the
supplementation of this Law with Sections 14.1 and
14.2 shall come into force on 1 January 2020.
[28 March 2019]
17. The Cabinet shall issue the regulations referred to in
Section 14.2, Paragraph four of this Law until 31
December 2019.
[28 March 2019]
Informative
Reference to the Council Regulation
[13 March 2008]
Informative
Reference to European Union Directive
[5 October 2017]
This Law contains legal norms arising from Directive
2014/104/EU of the European Parliament and of the Council of 26
November 2014 on certain rules governing actions for damages
under national law for infringements of the competition law
provisions of the Member States and of the European Union.
This Law shall come into force on 1 January 2002.
This Law has been adopted by the Saeima on 4 October
2001.
President V. Vīķe-Freiberga
Riga, 23 October 2001
1 The Parliament of the Republic of
Latvia
Translation © 2020 Valsts valodas centrs (State
Language Centre)