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Eric Hoffer
pribaltika.com
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Latvia’s budget earned EUR 1.7 million as a result of competition violations

In the first six months of 2016, the Competition Council applied fines to multiple companies for breaches of competition rules. This enriched the state budget with a little more than EUR 1.7 million. Thereby the Law on Competition has helped the state recover at least part of entrepreneurs’ illegally earned money.

27 companies have either paid or continue paying fines applied to them for breaching rules of competition in the first six months of 2016. Fifteen of those companies are associated with a construction cartel. CC had fined a total of twenty six construction companies for coordinating their activities and artificially inflating prices in more than 300 procurements.

CC calculated applied fines based on companies’ annual turnover. CC also takes into account the extent of the violation, as well as any extenuating circumstances.

Five court cases concluded in the first half-year. Twenty five remain in process. In addition, the state budget has yet to receive EUR 18.2 million in applied fines.

Application of fines is used by CC primarily as a preventive measure – to stop companies from realizing illegal activities and preventing other companies from trying the same. Fines are also a way of recovering losses caused to the state and society as a result of dishonest practices, as reported by CC.

BNN 
24-07-2016
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