Latvia’s Competition Council (KP) has imposed fines totalling 47,124 euros on eight companies for participating in a cartel in the funeral services industry, Competition Council Chairwoman Ieva Šmite announced at a press conference on Tuesday.
The Competition Council established that nine companies had participated in a prohibited agreement. The companies identified were SIA ABSocial, SIA Rīgas memoriālais centrs, SIA Flammax, SIA Krematoriju apvienība, SIA RR Company, SIA Terrawood, SIA Fungi International, SIA Sanitārais transports and SIA Nacionālais apbedīšanas dienests.
Although the authority also established the active involvement of Nacionālais apbedīšanas dienests in the infringement, the company ceased operations in 2024. As a result, no proceedings were initiated against it and no fine was imposed.
For the competition law violations, the Competition Council imposed fines totalling 47,124 euros on the companies involved.
The penalties ranged from 2% to 4.5% of the companies’ net turnover in their most recent financial year, depending on their respective roles in the infringement.
The largest fine, 22,748 euros, was imposed on Krematoriju apvienība.
ABSocial and Rīgas memoriālais centrs, which were assessed as a single market participant, received a combined fine of 13,980 euros, while Flammax was fined 7,249 euros.
RR Company received a fine of 1,047 euros, while Terrawood, Fungi International and Sanitārais transports were each fined 700 euros.
The Competition Council established that the companies’ activities were aimed at dividing public procurement contracts among themselves.
They coordinated their participation or non-participation in at least 13 public tenders involving funeral services or the transportation of deceased persons using specialised vehicles.
According to the authority,
the companies exchanged commercially sensitive information, submitted cover bids and withdrew their offers without legitimate justification.
The tenders were organised between 2020 and 2025 by Riga East University Hospital, state social care centres, Riga Municipality and the State Police.
The combined estimated value of the contracts reached approximately two million euros, including procurement procedures that were subsequently cancelled or terminated.
As previously reported, the Competition Council had identified evidence of a cartel operating in Latvia’s funeral services industry, with financial penalties exceeding 47,000 euros.
The authority initially obtained information suggesting that at least eight companies had exchanged commercially sensitive information, unlawfully coordinated the conditions of their participation and submitted coordinated bids in public procurement procedures.
These tenders concerned funeral services, related services and the provision of specialised vehicles.
Such conduct constitutes a violation of the prohibition on anti-competitive agreements established under Latvia’s Competition Law.
In October 2025, as part of its investigation into the suspected prohibited agreement, the Competition Council carried out procedural investigative measures at several companies and premises operating in the funeral services market.
The Competition Council emphasised that horizontal anti-competitive agreements, commonly known as cartels, are among the most serious violations of competition law, particularly when they involve public procurement.
Companies found to have participated in such infringements may face fines of up to 10% of their net turnover in the previous financial year, with a minimum penalty of 700 euros per company.
In addition, cartel participants are prohibited from taking part in public procurement procedures for three years after the Competition Council’s decision enters into force.
The authority had previously indicated that other market participants, against whom no investigation had been initiated in 2025, might also have been involved in the suspected infringement.
For this reason, the Competition Council encouraged companies that may have participated in violations of the Competition Law to take advantage of its Leniency Programme.
Under the programme, companies that voluntarily report their involvement in a cartel and cooperate with the authority may qualify for full immunity from fines or a substantial reduction in their financial penalties.