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

Under Section 12 of the Competition Act, as amended on 12 March 2016, the Leniency programme makes an undertaking eligible to immunity from any fine if that undertaking has reported a cartel agreement, or to a reduced fine if it collaborates in the investigation of a cartel infringement.
The Competition Council may grant immunity from fine where:
1) the undertaking was the first to provide evidenc …

Leniency

The Competition Council must try to achieve the cessation of a breach of the Act through negotiation before notifying the breach. If the breach has not ceased, the Council then takes a decision on cessation.

Moreover, under Section 8.1 introduced by the 12 May 2016 amendments, the Competition Council may, in case of a failure to comply with a legal obligation, in particular a commitment proposed to put an end to competition proceedings, order forced execution thereof by imposing pecuniary penalties on the undertaking(s) concerned. The addressee will however get a written warning on forced execution of the legal obligation and be able to express its views. Where it deems it necessary, the Competition Council is entitled to impose a pecuniary penalty by executive order which may be issued repeatedly until the undertaking has fulfilled its legal obligation. An appeal against the executive order may be lodged before the Administrative Regional Court within seven days of its receipt. The complaint must be examined within a reasonable time period, but not later than within one month from the day of its receipt. However, appeal of the executive order will not suspend its enforcement. 

Cease and desist orders

If the Competition Council considers that a violation of Section 11(1) of the Competition Act was committed by the market participants under investigation, it may impose a penalty of up to 5% of their net turnover during the previous financial year, but in any case not less than EUR 350 - Section 12(2)). Where the fine is imposed pursuant to Section 12(3) of the Competition Act, the maximum and minimum are doubled, with a ceiling of 10% of the turnover, and a lower limit of EUR 700.

According to Section 14 of the Competition Act, as regards cases of abuse of dominance, the Competition Council may impose upon market participants a fine up to 5% of their net turnover for the previous financial year each, but not less than EUR 350.

The Competition Council may also impose a fine for the following breaches: i) failure to provide information regarding the case within the required time-limit upon request of the Competition Council; ii) failure to correct incomplete information regarding the case within the required time-limit; iii) failure to provide information regarding market supervision within the required time-limit upon repeated request of the Competition Council; iv) provision of false or misleading information; v) refusal to fulfil lawful requests made by officials of the Competition Council; vi) breaking a seal that has been affixed in accordance with the procedures laid down in Section 9(4) of the Act. The fine may reach up to 1% of the annual net turnover of the undertaking concerned in the last financial year.

Moreover, where an undertaking refuses to comply with a decision of the Council, the penalty may be increased to 10% of the undertaking's annual turnover, but the fine shall be not less than 500 lats (EUR 715) each.

According to Paragraph 4 of Section 14, “The Cabinet shall issue regulations regarding the procedures by which fines are specified [...]”. This has been done with Regulation No 796 of 29 September 2008, repealed and replaced by Cabinet Regulation “Procedures for the Determination of Fines for the Violations Provided for in Section 11, Paragraph one and Section 13 of the Competition Law and for in Sections 5, 6, 7 and 8 of the Unfair Retail Trade Practices Prohibition Law” No 179 of 29 March 2016. 

Changes to the regulations have been made in order to fully incorporate the requirements of Directive No 2019/1 into the national legal system regarding the imposition of a fine. Section 12 of the Competition Law has been supplemented with new rules, which provide for changes in the procedure for calculating fines for violations of the TFEU.

According to this provision, if the infringement of the prohibition of restrictive agreements is to be regarded as the violation referred to in Article 101(1) TFEU, the Competition Council is entitled to impose a fine on market participants of up to 10 per cent of their net worldwide turnover in the previous financial year each, but not less than EUR 700 each.

Fines

Under Section 12 of the Competition Act, as amended on 12 March 2016, the Leniency programme makes an undertaking eligible to immunity from any fine if that undertaking has reported a cartel agreement, or to a reduced fine if it collaborates in the investigation of a cartel infringement.

The Competition Council may grant immunity from fine where:

1) the undertaking was the first to provide evidence and other information relating to facts and circumstances that are sufficient for initiating proceedings or detecting a cartel infringement;

2) the undertaking has not coerced other undertakings to join the cartel or continue participating in it;

3) at the time of recepit of the application the Competition Council does not possess sufficient evidence that could be the basis for initiating proceedings or detecting a cartel infringement.

A fine reduction may be granted where the undertaking provides evidence and other information related to a cartel infringement that substantially supplements the evidence and data already in the possession of the Competition Council; or  provides evidence on another cartel infringement and the Competition Council grants immunity from fine for this cartel infringement.

The Competition Council either approves or dismisses the application in the decision establishing the infringement and imposing legal obligations and/or a fine. The decision will not include information regarding the identity of the undertakings having collaborated with the Competition Council under the leniency programme.

The detailed conditions of the Latvian leniency programme are to be found in Cabinet Regulation “Procedures for the Determination of Fines for the Violations Provided for in Section 11, Paragraph one and Section 13 of the Competition Law and for in Sections 5, 6, 7 and 8 of the Unfair Retail Trade Practices Prohibition Law” No. 179 adopted on 29 March 2016.

By virtue of a 2022 amendment, the framework of the Leniency Program has been expanded. Indeed, market participants that disclose prohibited vertical agreements on resale price maintenance or passive sales restriction can benefit from it on the same basis as the members of a cartel.   

Global Competition Law

460. Leniency

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Les notions juridiques connexes

460. Leniency

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Les notions juridiques connexes

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