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

A former Act of 1997 defined a dominant position as the exceptional economic position of a market participant whose market share exceeded 40%, thereby allowing it to act independently of its customers or competitors to an appreciable extent.
The Competition Act of 2002 changed these provisions, putting Latvian law more in line with EU rules. Section 13 of the current Competition Act provides that  …

Abuse of a dominant position

A former Act of 1997 defined a dominant position as the exceptional economic position of a market participant whose market share exceeded 40%, thereby allowing it to act independently of its customers or competitors to an appreciable extent.

The Competition Act of 2002 changed these provisions, putting Latvian law more in line with EU rules. Section 13 of the current Competition Act provides that any market participant who is in a dominant position is prohibited from in anyway abusing that position in the territory of Latvia. As Article 102 TFEU, Section 13(1) gives a non-exhaustive list of behavior that can be considered as abusive:

- refusing to enter into transactions with other market participants or amending the provisions of a transaction without an objectively justifiable reason, including unfair and unjustified refusal to supply products or deliver services;

- restricting the amount of production, the sale of goods, or market or technical development without an objectively justifiable reason and to the detriment of consumers;

- imposing supplementary obligations that have no connection with the subject of the contract on contracting parties;

- directly or indirectly imposing unfair purchase or selling prices or other unfair trading provisions;

- applying dissimilar conditions in equivalent contracts with other trading partners, thereby placing them at a competitive disadvantage.

Fines can be imposed for up to 5% of the net turnover of the previous financial year of the dominant undertaking, but no less than EUR 350, according to Section 14 paragraph two of the Competition Law.

In the case of a failure to comply with the legal obligations imposed by the authority, the latter may adopt a decision to increase the fine to 10% (in which case the fine may not be less than EUR 700 each).

A new concept of dominance in the retail markets has been introduced into Latvian law by several amendments to the Competition Act adopted on 18 March 2008.

According to Section 13(2) of the Competition Act, an undertaking would be considered dominant on a retail market, if having regard to its purchasing power and the dependence of the suppliers in the relevant market, the undertaking has an ability to apply or force, directly or indirectly, on suppliers unfair or unreasonable terms and conditions or payments, and it may prevent, restrict or distort competition on any relevant market in Latvia for a sufficiently long period of time.

Section 13(2) of the Competition Act contains a list of abuses of dominant position on a retail market, which is an exhaustive list, contrary to the list of abuses of Section 13(1). These abuses concern prohibited behaviors relating to the return of products, payments, penalties, etc.

This new concept of abuse of dominant position on a retail market comes in addition to the general prohibition of abuse of dominant position. Therefore, where a behavior could be prosecuted both under the prohibition of Section 13(1) (general abuse of dominant position) and under the new concept of Section 13(2), it will be prosecuted as a breach of the general prohibition of abuse of a dominant position and as such, it will be subject to the highest penalties.

Global Competition Law

449. Abuse of a dominant position

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Les notions juridiques connexes

449. Abuse of a dominant position

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

Les notions juridiques connexes

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