Latvia, Legislation, Markets and Companies, Woodwork

The said companies entrusted one and the same person with preparing their tenders for two procurements, therefore exchanging information containing commercial secret and eliminating real competition.

All seven fined companies – ADV Forestry, Andrenkalni, Clean Forest, IK White Water House, Ramuss, LatKada, and SIA LMV Mezsaimnieciba – submitted these tenders in a procurement of forest planting and agro-technical thinning of a restored forest area. Furthermore, ADV Forestry, Clean Forest, and LMV Mezsaimnieciba submitted coordinated tenders in a procurement of forestry work.

The Competition Council initiated the investigation after receiving an application from Latvijas valsts mezi. Cartel participants denied any correlation, while later changed their original testimony and pointed out that they were one market participant, substantiating statement with a mutual relationship and trust agreements through which all companies were controlled by one person. During the investigation, the Competition Council did not find evidence of the actual execution of such agreements.

In the context of the case, the Competition Council highlights that family ties between employees or owners are not an excuse for submitting coordinated tenders. The fact that owners of several undertakings are linked by kinship does not give a basis for them to be recognized as one market participant, which mutually does not compete, and to be justified in misleading the organizer of a procurement. Undertakings have to compete or, if in case of kinship it is not possible, operate officially as one market participant.

Due to provision of the false and contradictory information and impeding investigation, not providing information to the competition authority in a timely manner or at all, the Competition Council also decided to increase the fines imposed to all cartel participants.

According to Firmas.lv, ADV Forestry belongs to Daiga Dzalba. The company's turnover in 2014 totaled EUR 464,844 and profit EUR 4,793.

Andrenkalni belongs to Iveta Priekune, but until October 2015, Dzalba was the sole owner of the company. Andrenkalni posted EUR 742,854 in turnover and EUR 9,528 in profit in 2014.

Clean Forest belongs to Aldis Urtins. In 2014, the company's turnover was EUR 96,927 and profit EUR 2,700.

Inese Urtina is the owner of White Water House. The company has not yet submitted its income statements.

Ramuss belongs to Rihards Burkevics. The company posted EUR 127,337 in turnover and EUR 86 in profit in 2013.

LatKada belongs to Kaspars Abolins. The company's turnover was at EUR 343,382 and losses at 3,881 in 2014.

LMV Mezsaimnieciba belongs to Liga Meiere. The company posted EUR 20,111 in turnover and EUR 3,596 in profit in 2014.