The year 2025 is poised to be a landmark period for competition law in Latvia. With major rulings set to reshape enforcement policies, the Latvian competition law landscape is entering a transformative phase. Key developments include the conclusion of a protracted litigation in a landmark prohibited agreement case and crucial judgments from the Latvian Supreme Court, particularly regarding the infamous builders’ cartel case.
One of the noteworthy legislative changes is the introduction of personal liability for company executives regarding competition law violations. On October 2, 2025, draft amendments to the Competition Law were presented to the Saeima, Latvia’s Parliament, seeking to hold company officials accountable for prohibited agreements that may involve misuse of public funds. Under these proposed amendments, the Competition Council (CC) would have the authority to impose a three-year ban on infringing company officials from holding any official positions. This significant shift emphasizes that infractions are not merely corporate expenses but can result in severe personal consequences for those in charge.
In the realm of anti-competitive agreements, the CC has intensified its scrutiny of public procurement cartels. A recent case highlighted the collusion among five construction companies involved in submitting tenders for repair and construction works throughout Latvia, resulting in a hefty fine amounting to half a million euros. This investigation, sparked by tips from SIA “Rīgas namu pārvaldnieks,” underscores the importance of the CC’s initiative to educate procuring entities on identifying red flags in tender submissions.
After over a decade of litigation, the KIA Auto case reached its conclusion with the Latvian Supreme Court’s recent ruling dismissing the cassation appeal filed against the CC’s initial decision. The case focused on warranty conditions related to KIA vehicles and highlighted the European Court of Justice’s stance that proof of potential anti-competitive effects is sufficient for enforcement actions.
A landmark decision arrived just before Christmas with the Supreme Court overturning the Administrative Regional Court’s decision in the builders’ cartel case, a significant event affecting ten construction companies implicated in cartel-like behavior in approximately 70 procurements. This ruling deemed covert recordings obtained during criminal investigations inadmissible as evidence in competition law proceedings, marking a crucial protection of individuals’ rights under Latvian law.
Additionally, the CC imposed a €78,000 fine on SIA “Mārupes komunālie pakalpojumi” for abusing its dominant market position. The utility company was criticized for erroneously charging customers for sewage services related to water used for gardening, highlighting the need for fair billing practices within monopolistic markets.
The merger activity saw 18 decisions made by the CC in 2025, with notable transactions, including Ingka Investments’ large-scale acquisition of forest land and the merger involving ADB Gjensidige and ERGO. Nonetheless, the overall activity witnessed a slight decline compared to previous years.
As 2026 looms, the CC aims to maintain a vigorous focus on the food retail sector and the investigation of cartels, particularly in public procurement. The establishment of a new project assessing the competitiveness of the retail sector in Latvia and the Baltic States reflects the ongoing commitment to enhancing market fairness.
These dynamic shifts within Latvia’s competition law arena paint a hopeful picture of regulatory evolution, ultimately strengthening market integrity and consumer protection.