Competition Council (KP) media representative Zane Gorškova reports that the council and Liepājas autobusu parks (LAP) public transport company signed an agreement to settle their legal dispute on the 26th of October. In accordance with this deal the company admits being a part of a cartel.
This dispute was over KP’s conclusion regarding the cartel agreement among public transport service providers on regional routes. LAP is committed to withdrawing their plea submitted to the court to challenge KP’s decision and paying the assigned fine for participating in the cartel.
On the 5th of January 2023 KP made the decision with which it discovered a prohibited agreement involving LAP, Latvijas Sabiedriskais Autobuss LLC and Nordeka JSC in procurements organised by Road Transport Administration. These procurements covered public transport services on regional routes for a period of ten years.
Three companies were fined a total of EUR 1 974 923.81 for this violation.
In July 2019 the Road Transport Administration announced a procurement for public transport services on regional bus routes until the year 2030. The total network of routes was divided into 16 parts – with 2.5 to 6 million km a year in each lot. At the same time, the procurement also provided for certain restrictions for market participants: each participant was not allowed to get more than 15 million km a year.
KP concluded in its investigation that LAP, Latvijas Sabiedriskais Autobuss LLC and Nordeka JSC mutually exchanged sensitive commercial information during procurement.
In February 2023 LAP, Latvijas Sabiedriskais Autobuss LLC and Nordeka JSC challenged KP’s decision. The Administrative Regional Court initiated three separate lawsuits. KP and LAP have since reached a settlement agreement.
Also read: Minister on regional buses: cancelling is more economical than trying to provide
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