Competition, Construction, Latvia, Legislation, Markets and Companies

The Competition Council found that the two companies have been violating fair competition rules by abusing their dominant market position.

The Competition Council established that from 2009 to 2014 the two companies offered a loyalty-promoting discount system to their clients - Latvia’s largest retailers of construction materials - restricting the retailers’ possibility to choose alternative suppliers and preventing rival companies from entering the market.

The Competition Council has fined the two companies with EUR 1.6 mln for using their dominant market position to apply the loyalty-promoting discount system.

Knauf has been fined with EUR 965,548, and Norgips sp.z.o.o, the parent of Norgips, has been ordered to pay EUR 655,850 for the violations.

Both companies can appeal the fines in court, but they are still legally obliged to end their competition-crippling practices and stop offering the discounts.