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Competition Council fines "Drogas" for abuse of dominant market position

Photo: Evija Trifanova/LETA.
 RIGA, Jan 3 - The Competition Council has fined cosmetics and household goods retailer "Drogas" LVL 18,967 for abusing the company's dominant position on the market.
According to the Competition Council, by imposing unfair, disproportionate and unjustified cooperation terms on cosmetics wholesaler "Euro Cosmetics", "Drogas" contributed to the company's insolvency. "Drogas" also demanded discounts from its suppliers, causing the so-called "waterbed effect" and forcing the wholesaler to offer other retailers its goods at higher prices to compensate for losses from cooperation with "Drogas".
The Competition Council has imposed the highest possible fine for such a violation - 0.05 percent of the company's net turnover in the previous year. When fining "Drogas", the Competition Council also took into account the company's actions and their consequences, attempts to delay investigation, conceal evidence and refusal to cooperate with the Competition Council. "Drogas" will also have to remove its unfair terms from contracts with other suppliers.
leta.lv
03-01-2013
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