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Latvia court confirms involvement of local government company in nano water acquisition

Christian Fernsby ▼ | April 27, 2020
On 20 April, the Administrative Regional Court left effective the decision adopted by the Competition Council of Latvia (the CC), according to which last year the authority detected a prohibited agreement concluded by the local government owned public transport company SIA Rīgas satiksme and six market participants in price quotations on supply of nanotechnology chemicals.
SIA Rīgas satiksme
Latvia   SIA Rīgas satiksme
This was the first decision, where the CC detected severe infringements in activities of the customer SIA “Rīgas satiksme” itself, because the company facilitated bid-rigging in its price quotations.

Topics: Latvia water

In 2019, the CC detected that six market participants with the support of the customer coordinated their tenders in two price quotations organised by SIA “Rīgas satiksme”, implemented in the period from 2012 to 2014 with the total contract sum exceeding 800 thousand euros and aimed at ensuring supply of nanotechnology chemicals.

The CC concluded in the decision that an official of the customer – SIA “Rīgas satiksme” – and six tenderers mutually agreed on the participation conditions and documentation to be submitted, and also agreed on the planned winner of price quotations.

The tenderers were aware both of engaging in the prohibited activities, and the competition imitating nature of these activities.

Whereas the involvement of the customer in facilitation of bid-rigging is also confirmed by the fact that the tenderers were informed about participation in price quotations already before announcement of these procedures.

The CC imposed a fine of 2 417 000 euros on SIA “Rīgas satiksme” and 700 euros on SIA “Sava arhitektūra”.

Other participants of the bid-rigging have been liquidated; therefore, fines have not been imposed on these companies.

The judgment of the Administrative Regional Court is subject to appeal.