Ecology, Latvia, Legislation, Markets and Companies

The court concluded that the local authority and Getlini EKO waste management company were in a dominant position in the market. Moreover, Getlini EKO is also in a dominant position in the waste burial market of Riga and Riga Region. 

The court agreed with the Competition Council's findings that Tiriga, a company established by Getlini Eko and CREB Riga, was able to take over the waste collection and transportation services in Riga thanks competition-restricting measures taken by the local authority and Getlini EKO. 

The court also ruled that Article 102 of the Treaty on the Functioning of the European Union, which bans the abuse of a dominant market position is attributable to this case. 

The ruling of Administrative Regional Court is final and not subject to appeal.

As reported, on September 9, the  Competition Council banned Tiriga waste management company from signing waste collection contracts with the residents of Riga.

The Competition Council already in April warned the Riga City Council about the risks to competition and interests of the Riga residents if the local authority signs an agreement with the waste management operator for a term of 20 years.

There were two bidders, each of them formed up by two companies, in the tender for the public and private partnership. After the tender was completed, the Competition Council started assessing the newly set joint company as a merger or agreement on cooperation.

According to the Competition Council, a public and private partnership is welcome, but the Riga City Council is invited to make decisions on shorter cooperation terms, as well as divide Riga into several regions in order to ensure better competition.

Joint-stock company Tiriga's public partner is Getlini Eko that ensures supervision of the public and private partnership project. The private partner is CREB Riga that is formed up by two waste management companies - Clean R and Eco Baltia Vide.

As reported, Getlini Eko announced that CREB Riga is the winner of the tender worth EUR 686.3 mln on waste management services in the Latvian capital for the coming 20 years.

In early June, Getlini Eko and CREB Riga registered joint-stock company Rigas Vides Pakalpojumi that was later renamed to Tiriga.

The Competition Council announced earlier that Clean R and Eco Baltia Vide had to report on the merger in the new company CREB Riga.

Clean R last year generated EUR 33.375 mln in sales, and posted EUR 3.505 mln in profit. The company was registered in 2004, and has a share capital of EUR 1.2 mln. Its sole owner is TAK Investicijas and the true beneficiary is Guntars Kokorevics.

Getlini Eko is the operator of the largest landfill in the Baltic states, Getlini. The company was registered in 1997 and belongs to the Riga City Council (97.92%) and Stopini regional council (2.08%).

Eco Baltia Vide is a member of Eco Baltia group. Its largest shareholders are the European Bank for Reconstruction and Development (30.51%), Otrais Eko Fonds (19.46%), and Viesturs Tamuzs, Maris Simanovics and Undine Bude (16.68% each).