Riga, November 5, 2025 — The Latvian Competition Council (Konkurences padome, KP) has fined Maxima Latvija €1,872,805 (approximately $2.1 million) for unfair trading practices in its dealings with agricultural and food suppliers. Maxima abused its market power by unilaterally changing purchasing prices over a period of nearly three years, the authority said.
According to the KP, suppliers were economically dependent on Maxima, with limited alternative sales channels, making the retailer a dominant buyer under Latvia’s Unfair Trading Practices Prohibition Law. Maxima’s market share reached 28% in 2024, and the three largest retail chains collectively control around 60 percent of Latvia’s grocery market — leaving suppliers with little choice but to accept imposed terms.
The investigation revealed that Maxima used its bargaining power, from November 2021 to August 2024, to pressure suppliers into accepting lower procurement prices, often delaying price approvals for months. In several cases, suppliers’ requests to raise prices were ignored for three to twelve months, forcing them to continue deliveries at old rates. Maxima also demanded price reductions under vague pretexts such as “market trends” or “lack of competitiveness.”
The KP found that these price cuts did not benefit consumers, as retail prices remained unchanged, allowing Maxima to retain the gains. The authority also noted that the retailer threatened to delist products, cancel orders, or remove items from promotions when suppliers refused to comply.
KP Chairwoman Ināra Šmite said, “Unfair trading practices undermine mutual trust and distort market balance. Retailers must use their market power responsibly — behind every supplier stand Latvian producers, companies, and jobs. It is unacceptable for a buyer to exploit its market power to boost competitiveness and profit at the expense of suppliers.”
In addition to the fine, Maxima was ordered to implement several corrective measures, including:
- Setting clear and balanced timeframes for price negotiations with suppliers.
- Responding within agreed deadlines to justified price increase requests.
- Providing adequate justification for price changes and refraining from retaliatory actions against suppliers.
This marks the first decision under Latvia’s Unfair Trading Practices Prohibition Law, which came into force in 2021. The KP emphasized that it will continue to act decisively against unfair conduct and encouraged suppliers to report violations, including anonymously.
The authority warned that sustained pressure on suppliers could create a “waterbed effect,” where smaller retailers face higher prices than large chains, ultimately reducing innovation, quality, and product diversity in Latvia’s food supply chain.
