Latvia’s NCA Closes Investigation into Alleged Prohibited Agreement

The Competition Council (CC) has closed (31 January) its investigation into a possible prohibited agreement in public procurement within the catering services sector. The case involved market participants SIA “ALEKS UN V” (AV) and SIA Concord Service Group (CSG), who formed a joint company, SIA “CNC”, to participate in tenders.

The investigation, initiated in February 2024, followed concerns from a public contracting authority. However, after procedural actions, including electronic data reviews and economic assessments, the CC found no violation of competition law. It concluded that forming an association of persons for procurement participation is a permissible practice when justified.

Deputy Chairperson Ieva Šmite emphasized that while joint bidding is allowed, companies must ensure it does not distort competition or limit customer choice. The CC advises businesses to assess their ability to bid individually and consult relevant procurement guidelines.

Source: https://www.kp.gov.lv/lv/jaunums/nekonstatejot-parkapumu-kp-izbeidz-izpetes-lietu-par-iespejamu-aizliegtu-vienosanos-starp-personu-apvienibas-tirgus-dalibniekiem

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