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

Where the Competition Council has decided to initiate a case pursuant to its own definition of its enforcement priorities, it collects the information necessary for the adoption of a decision from undertakings. Under Section 26(2) of the Competition Act, any person must provide the requested information in principle not later than within seven days from receipt of the request. The undertakings con …

Proceedings before the Competition Council

Before the 12 May 2016 amendments, investigations were carried out by the Executive Directorate. This task is now carried out by the Competition Council, which may decide to conduct investigations into alleged breaches of the Competition Act on its own initiative. The 2016 amendments also repealed the possibility for undertakings to make complaints. They are now only allowed to “provide information to the Competition Council regarding the facts on the basis of which the infringement of this Law may be established” (Section 22). Interestingly, Section 8(6) of the Competition Act specifically provides that the Cabinet of Ministers or the Minister for the Economy or any other person may not issue any instructions to the Competition Council as regards the initiation of investigations or the adoption of decisions.

The 2016 and 2022 amendments increased the Competition Council's investigative powers. Therefore, when carrying out market supervision or investigating infringements of the Competition Act, the Competition Council, is entitled to request from any person the necessary information for the performance of its tasks, including data containing commercial secrets, as well as written or oral explanations and visit any undertaking even without prior notice. During the visit and upon presentation of a written authorization the officials of the Competition Council may request documents (including electronic data and data containing commercial secrets) and gather written or oral explanations from the employees of the undertaking and seize documents. On the basis of a judicial warrant, without prior notice and in the presence of police, the officials of the Competition Council may enter non-residential premises, means of transport, flats, structures and other immovable and movable objects that are in the ownership, possession or use by an undertaking, to open them as well as the storage facilities existing therein, carry out a forcible search of the objects and the storage facilities therein and perform an inspection of the existing property and documents therein including data stored on computers, floppy disks and other information stored in an electronic information system. If a person whose property or documents undergo a search refuses to open the objects or storage facilities existing therein, the officials of the Competition Council are entitled to open them without causing substantial damage. During the search and inspection the officials of the Competition Council are entitled to prohibit persons from leaving the site without permission or having discussions until the end of the operations; inspect the information included in the documents and in the electronic information system (including data containing commercial secrets); seize property items and documents; print or record data stored in the electronic information system of the undertaking; request and receive written or oral explanations from the employees of the undertaking; temporarily, but not longer than for 72 hours, seal the premises, means of transport, structures and other objects and the storage facilities therein, in order to ensure the preservation of evidence. 

Moreover, under the 2016 amendments, if during inspections at an undertaking's premises the Competition Council's officals learn that further evidence may be found at the premises of a third party undertaking, they may apply to the court under urgent procedures for an authorization to carry out inspections there. The court must grant or reject the petition for a warrant within 2 hours (Section 10.5). In addition, the new rules allow the Competition Council to obtain disclosure of information from electronic communications operators on the basis of a judicial warrant or with the consent of the undertaking concerned. A similar prerogative has also been granted to the Competition Council in relation to confidential information held by banking institutions.

Section 9.3 provides that an official of the Competition Council shall notify every person in relation to whom investigatory activities are performed of his or her rights when commencing the said activities. This includes the right:

- to be present, to express his or her comments and requests;

- when providing explanations, to use the assistance of a counsel or any other type of legal aid ; the commencement of provision of explanations must be postponed temporarily for not longer than one hour if it is necessary to wait for the arrival of counsel;

- to propose that the information to be provided be assigned the status of restricted access information;

- to become acquainted with the procedural action report and the documents attached thereto, to submit corrections and additions; and

- to submit a complaint regarding the action of the official of the Competition Council to the Chairperson of the Competition Council.

The 2022 amendment which transposes the Directive 2019/1  clarifies the right to receive support from other law enforcement authorities in the context of procedural inspection activities. It concerns in particular the assistance of officials of competition authorities of other Member States in the implementation of activities when the CC conducts proceedings in the name and on behalf of the competition authority of another Member State. 

Complaints and investigations

Where the Competition Council has decided to initiate a case pursuant to its own definition of its enforcement priorities, it collects the information necessary for the adoption of a decision from undertakings. Under Section 26(2) of the Competition Act, any person must provide the requested information in principle not later than within seven days from receipt of the request. The undertakings concerned may become acquainted with the case, express their own point of view and submit additional information within 20 days from the moment of receipt of the Statement of Objections. Upon request of the addressee, the Competition Council must hear its oral explanations prior to taking a decision that may not be in its favor.

Section 27 of the Competition Act states that “The Competition Council shall take a decision within six months from the day of initiation of a case”. If, due to objective reasons, it is not possible to observe this six months time period, the Competition Council may extend it for a period up to one year (from the day of the initiation of a case). The Competition Council may also extend the six months time period by a justified decision if prolonged fact-establishing is required.

Under Section 27.2, the Competition Council may terminate the proceedings if the market participants offer commitments that prevent the restriction of competition. If undertakings fail to fulfil the legal obligations provided for in their written commitments, forced execution may be implemented in accordance with the procedures laid down in Section 8.1 of the Act. The Competition Council may resume a case terminated in exchange of commitments.

Pursuant to Section 30, where there is evidence of a possible infringement of European Union competition law and non-termination of this infringement may cause significant and irreversible harm to competition, the Competition Council may take interim measures.

 By decision, the Competition Council may require market participants to perform specific activities or prohibit specific activities within a specified time period. A decision regarding interim measures is in effect until the moment when a final decision in the case is no longer able to be contested. Forced execution of the binding provisions imposed by the interim measure may be implemented in accordance with the procedures for forced execution of legal obligations laid down in Section 8.1 of the Act.

Since the 12 May 2016 amendments, interim measures may be appealed before an administrative district court only within 10 days from the day they come into effect (one month previously). The court must examine the application within 14 days (Section 31). However the appeal does not suspend the effect of the decision.

Interim relief

Pursuant to Section 20 of the Competition Act courts may, concurrently with the Competition Council, rule on infringements of the Act and of EU competition rules. They can either terminate and prohibit infringements of competition law; take action to prevent such infringements; or duly compensate for the infringement. Pursuant to Section 20.1, the court which has accepted an application and initiated the case must, within seven days from the date of initiation of the case, send a copy of the application and the decision to initiate the case to the Competition Council. The latter may, on its own motion or at the request of the court, provide an opinion in the case concerning the application of EU competition law. Within seven days of its ruling in a case regarding an infringement of EU competition law, the court must send a copy of the judgement to the Competition Council and the European Commission. Where the case only concerns an infringement of the Act, the copy must only be sent to the Competition Council.

Latvia has partially implemented EU Directive No 2014/104 on damages actions for competition law infringements with the 12 May 2016 amendments, and completed the transposition with amendments to the Competition Act passed on 5 October 2017 and 9 June 2022 and to the Code of Civil Procedure passed on 19 October 2017. Section 21 provides that a person who has incurred losses due to an infringement of the Competition Act is entitled to seek compensation for losses from the infringer and interest due. Where the amount of the damage caused by the infringement is practically impossible or excessively difficult to determine precisely, the court will determine the amount of damage on the basis of the evidence available. Furthermore, where the infringement at issue is a cartel, it is presumed that it caused damage. Going beyond the requirements of the directive, Section 21 sets a rebuttable presumption that prices have raised by 10% as a  result of the infringement.

The 2017 provisions specify that jurisdiction for damages actions lies with the Latgale Suburb Court of the City of Riga.

Global Competition Law

455. Proceedings before the Competition Council

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Les notions juridiques connexes

455. Proceedings before the Competition Council

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Les notions juridiques connexes

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