Financial Services, Latvia, Legislation, Markets and Companies

The Competition Council told LETA that in 2014, Latvian State Forests announced a tender on preparation and transportation of timber from a forest to a public road. 11 companies applied, harmonizing their offers with one another, thus forming four cartels.

According to information from the Procurement Monitoring Bureau, the total contract price was EUR 30,027,825.

Several companies exchanged information about their participation in the procurement. Company Amils exchanged information with Oga G, RT Kadiki – with AN Priede, Eko burkans – with Davos, Riveros, and Consultation Office, Roluks – with LK Forest and Luux.

"If companies replace fair competition with simulation, the client is being deceived about the actual market situation, and is denied benefits that fair competition offers. By exchanging information about their participation in procurement and the requirements on bidders, fair competition between companies becomes impossible. Such actions are called a cartel agreement, which is an especially severe violation of the Competition Law," according to the Competition Council.