The Latvian Competition Council (KP) has announced findings of forbidden agreements between the two largest food retail companies in the country. On February 26, KP, in collaboration with law enforcement agencies, conducted procedural actions regarding suspected violations of competition law, suggesting that these companies may have coordinated to fix the prices of their products. Such practices can harm consumer interests by reducing competition in the market.

KP highlighted that the evidence found points towards possible collusion between the two major market players, indicating that they might not have operated independently. This coordination could constitute a violation of Article 101 of the Treaty on the Functioning of the European Union, which prohibits agreements that prevent, restrict, or distort competition. By potentially setting prices in agreement, these companies could jeopardize the integrity of the market and consumer trust.

Horizontal agreements, commonly referred to as cartels, are among the most serious breaches of competition law, and those found guilty can face significant penalties. The implications of such findings could lead to more stringent regulatory scrutiny within the retail sector and possible financial repercussions for the companies involved, emphasizing the importance of fair competition practices in protecting consumer rights.