Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

 Section 11 of the Competition Act prohibits all agreements between undertakings which have as their object or effect the hindrance, restriction or distortion of competition within the territory of Latvia. When a restrictive agreement is prohibited, it is considered null and void (Section 11(1)).
Included under this heading are agreements which:
- directly or indirectly fix prices; this includes e …

The prohibition

 Section 11 of the Competition Act prohibits all agreements between undertakings which have as their object or effect the hindrance, restriction or distortion of competition within the territory of Latvia. When a restrictive agreement is prohibited, it is considered null and void (Section 11(1)).

Included under this heading are agreements which:

- directly or indirectly fix prices; this includes exchange of information relating to prices or conditions of sale;

- limit or control production, markets, technical development or investment;

- attach supplementary obligations to commercial contracts which have nothing to do with the subject of the contracts;

- determine the participation or non-participation in competitions or auctions or concern the provisions for such actions (inactions), except for cases when the competitors have publicly announced their joined tender and the purpose of such tender is not to hinder, restrict or distort competition;

- apply dissimilar conditions to equivalent transactions with other undertakings, thereby placing them at a competitive disadvantage; or

- force a competitor to leave the market or make the entry of a potential competitor into the relevant market difficult.

Section 11(4)(1) of the Act provides that the Cabinet of Ministers may issue regulations regarding agreements which do not  significantly affect competition. However, it would appear that no de minimis regulation in this area has been adopted.

Where an agreement has anticompetitive effects and is considered contrary to Section 11(1) of the Competition Act, it may still be beneficial to the economy and therefore merit an exemption from the prohibition. Pursuant to Section 11(2) of the Competition Act agreements that promote improvements in the production or sale of products or economic progress and thereby benefit consumers are exempt from the prohibition referred to in Section 11(1) where they do not impose on the undertakings concerned restrictions which are not necessary for the achievement of these objectives and do not allow the possibility of eliminating competition in a substantial part of the relevant market. The burden of proving the compatibility of the agreement with those requirements lays on the undertaking.

Markets participants, prior to entering into an agreement, as well as prior to the entry into effect thereof, are entitled to submit to the Competition Council a notification regarding the relevant agreement.

According to Section 11(4)(2) of the Competition Act, the Cabinet of Ministers may adopt regulations exempting certain groups of agreements, decisions and concerted activities of undertakings from the prohibition set out in Section 11(1).

The following regulations have notably been adopted pursuant to the current Competition Act, on 29 September 2008:

- Regulation No 797 on the Non-subjection of Certain Vertical Agreements to the Prohibition of the Agreement Specified in Section 11, Paragraph One of the Competition Act;

- Regulation No 798 on the Horizontal Co-operation Agreement Exemption from the Agreement Prohibition Specified in Section 11, Paragraph one of the Competition Act.

The legislation includes block exemption regulations (agreements concluded in the field of domestic carriage by rail and road; agreements of liner shipping companies; vertical agreements), regulation on the procedure for the exemption of agreements falling under Section 11 of the Competition Law.

Global Competition Law

447. The prohibition

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Les notions juridiques connexes

447. The prohibition

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Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise