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Ceturtdiena 19.07.2018 | Name days: Jautrīte, Kamila, Digna
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Competition Council launches proceedings against Riga Freeport and Rīgas Brīvostas flote

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe Competition Council (CC) has launched proceedings regarding possible abuse of dominant position in activities of the Boards of Riga Freeport and Rīgas Brīvostas flote.

This April, PKL Flote had submitted an application to CC. In it, the company mentioned signs of abuse of dominant position in activities of Riga Freeport and Rīgas Brīvostas flote, declining and delaying their ability to offer tugboat services and preventing the company to offer tugboat services in the port in general.

The CC is currently investigating the possible violation of the Law on Competition.

CC notes that an effective and most useful solution to prevent a conflict of interests would be the adoption of a new type of monitoring and regulation that would prevent Riga Freeport from directly or indirectly performing commercial activities in areas the Board has under control.

Riga Freeport was once punished for limiting competition on the tugboat services market in the past as well. The first time such a violation was found in the work of Riga Freeport was in 2009. At the time, Riga Freeport had discontinued its cooperation with PKL Flote and had introduced unfair advantages for itself on the market. In April 2010, Riga Freeport Board was fined a great deal of money for its actions in 2009.

In 2011, however, CC punished Riga Freeport Board for abuse of dominant position, limiting the rights of PKL Flote in offering its own tugboat services at the port. Riga Freeport Board was fined LVL 105,000 as a result of this.

It was previously reported that the European Commission decided to launch an infringement procedure against Riga Freeport in relation to its decisions in the tugboat services market. This is why it has been decided to assess the possibility to amend current regulations during a meeting of the Latvian ports, transit and logistics Council this Wednesday, August 21. The arguments presented by the European Commission will also be discussed.

Latvian Prime Minister Valdis Dombrovskis says the fact that the European Commission is launching actions against Riga Freeport is a real problem, because the state could suffer considerable losses in this process. He also noted that the port will be obligated to cover the fine with its own budget.

Ref: 102.109.109.8723


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