The Competition Council (KP) announced on February 27th that it has uncovered indications of prohibited agreements between Latvia’s two largest food retailers. The KP suggests these retailers may have coordinated sales prices rather than acting independently, potentially harming consumer interests.
Investigation Underway
Such horizontal prohibited agreements, often referred to as cartels, represent a serious breach of competition law. Companies found guilty of these violations could face fines of up to 10% of their worldwide net turnover for the last financial year.
The KP has not publicly identified the retailers involved in the investigation. However, the LETA agency reported that procedural actions were carried out on February 26th at the offices of SIA Maxima Latvija in Riga. Maxima Latvija confirmed to the agency that Competition Council employees visited their main office.
According to reports from the LETA agency, the largest food retailers in Latvia are SIA Rimi Latvia, with a turnover of €1.126 billion in 2024, and Maxima Latvija, which reported a turnover of €1.102 billion in the same period.
What Could Happen Next?
The KP’s investigation is ongoing. The council will request further information from the retailers. A possible next step could involve the KP issuing a formal decision regarding the alleged anti-competitive behavior. The retailers involved could also choose to appeal any potential findings.
Frequently Asked Questions
What are prohibited agreements?
The KP indicated that prohibited agreements, or cartels, involve retailers potentially coordinating sales prices instead of acting independently.
What is the potential penalty for violating competition law?
Market participants found to have committed a violation could be subject to fines of up to 10% of their worldwide net turnover for the last financial year.
Which retailers are under investigation?
The Competition Council does not disclose which retailers are involved in the case, but the LETA agency reported procedural actions at SIA Maxima Latvija.
How might this investigation affect grocery prices for consumers?
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