The Competition Authority of Latvia reported on Friday that it has uncovered signs of a cartel agreement involving the two largest retail chains in the country. This follows a search conducted at the headquarters of Maxima Latvija, one of the chains, indicating potential collusion in establishing retail prices that may harm consumer interests. Such agreements are serious violations of competition law and can lead to significant financial penalties for the companies involved.

The authority did not disclose the names of the retailers involved, but local news agency Leta has reported that both Maxima Latvija and SIA Rimi Latvia are among the largest players in the Latvian retail market. The scrutiny of these companies comes amid a growing concern over the practices that may not only skew market competition but also directly affect pricing for consumers in Latvia. The inspection of Maxima's headquarters underscores the gravity of the situation as the Competition Authority aims to uphold fair trading practices.

In Latvia, violations like these can attract hefty fines of up to ten percent of a firm’s global net sales from the previous year. As investigations continue, there will be close monitoring of the developments surrounding both retail chains, which play significant roles in the market. The outcome of this inquiry could serve as a precedent for how competition laws are enforced in the future, potentially impacting not just these companies but the entire retail sector in Latvia.