Vilnius, December 23, 2025 — Lithuania’s parliament has approved amendments to the Competition Law that will halve the base level of fines imposed for breaches of competition rules, despite warnings from the national competition authority and concerns raised by the European Commission.
Under the amendments adopted by the Seimas, the base fine calculated at the first stage of enforcement proceedings will be capped at 50 percent of the statutory maximum penalty for Competition Law violations. At a second stage, the Competition Council will still be able to adjust fines based on mitigating or aggravating circumstances, but the 50 percent cap may only be exceeded where aggravating factors are identified or where deterrence uplifts are applied in cartel cases.
Authority and EU Raise Deterrence Concerns
During the legislative process, the Competition Council cautioned lawmakers that reducing fines for serious infringements — such as resale price maintenance agreements between suppliers and distributors or cartel arrangements between competitors — would significantly weaken deterrence and limit the authority’s ability to impose sanctions aligned with EU competition law standards.
The authority warned that lower fines could undermine consumer protection and reduce incentives for compliance with competition rules. According to the Competition Council, in certain cases fines could effectively be reduced by half, diminishing their deterrent effect against the most harmful anticompetitive conduct.
The Council also informed parliamentarians that the European Commission had expressed concern that the new framework would prevent the authority from adequately assessing the gravity and duration of infringements, as required under EU law, and from imposing proportionate sanctions.
Government Proposal Rejected
In its formal opinion, the Lithuanian government had proposed a less restrictive alternative, suggesting that the base fine calculated at the first stage should not exceed 100 percent of the statutory maximum. That approach, supported by the Competition Council, was presented as more consistent with EU competition rules.
However, the Seimas’ Economics Committee rejected the government’s proposal, clearing the way for the stricter 50 percent cap to be adopted.
The amendments to the Competition Law are expected to enter into force on May 1, 2026, subject to signature by President Gitanas Nausėda.
Source: https://kt.gov.lt/lt/naujienos/seimas-pritare-baudu-uz-konkurencijos-istatymo-pazeidimus-mazinimui
