Latvia Fines Utility Cartel in Major Competition Law Breach
The Competition Council of Latvia has uncovered and penalized a significant cartel involving utility network builders. The investigation revealed prohibited agreements among several companies, causing substantial harm to customers and society.
The probe began after the Competition Council received initial information from SIA 'Rīgas namu pārvaldnieks' about a possible prohibited agreement. Cartels, being the most serious competition law violations, can lead to significant losses for customers and society.
Two groups of companies were found to have implemented prohibited agreements. The first group consisted of Adapteris, Alpex, and Infrakom, while the second included Siltumtehserviss and Apkure IM. These companies colluded to distort competition in over 30 procurements for construction and repair services across Latvia between 2021 and 2024.
In one instance, Siltumtehserviss and Apkure IM submitted non-competing bids in 11 out of 25 affected procurements, having previously agreed on the winner. The actual contract execution was carried out jointly by both parties, regardless of the procurement winner. Similarly, Adapteris, Alpex, and Infrakom exchanged commercially sensitive information and coordinated offers in eight separate instances without genuine competition.
The Competition Council fined five utility network builders: Siltumtehserviss, Apkure IM, Adapteris, Alpex, and Infrakom. The total fines amounted to 513,508 euros. Four companies received a 10% fine reduction for settling with the Competition Commission.
The Competition Council's investigation and subsequent fines serve as a strong reminder of the serious consequences of anti-competitive behavior. The uncovered cartel distorted competition in numerous procurements, causing significant harm to customers and society. The Competition Council remains committed to protecting fair competition and preventing such violations in the future.
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