Mar 6 • 11:00 UTC 🇱🇻 Latvia LSM

The Senate suspends the competition case against 'Rīgas satiksme' and 'Rīgas mikroautobusu satiksme' and appeals to the EU court

The Latvian Senate has halted a competition case involving public transport companies Rīgas satiksme and Rīgas mikroautobusu satiksme, appealing to the EU court over a previous decision.

The Senate of Latvia has decided to suspend the proceedings in the competition case against public transport companies Rīgas satiksme and Rīgas mikroautobusu satiksme. This move comes after a decision by the Supreme Court to challenge the ruling of the Competition Council (KP), which had imposed penalties on both companies for an illegal agreement on public transport tariffs applicable to consumers. Although KP previously recognized that both companies have exclusive rights to provide public transport services, it also acknowledged their status as competitors due to their contractual arrangements that allowed for competitive service pricing.

In 2017, KP ruled that although the rights to provide public transport services were exclusive, the contractual relationships between Rīgas satiksme and Rīgas mikroautobusu satiksme necessitated an acknowledgment of their competitive status. The Council contended that Rīgas satiksme's subcontracting of services to Rīgas mikroautobusu satiksme had effectively created a new service provider in the market, which should have its pricing independently set. The matter escalated to the Supreme Court, where KP filed a cassation complaint against an Administrative Regional Court ruling that annulled the Council’s decision in 2023.

The Senate's move to appeal to the EU Court aims to clarify whether competition can indeed exist in this specific market. This development raises questions about the regulatory framework surrounding public transport services in Latvia and the implications for competition law, potentially influencing how public transport operations are structured and regulated moving forward.

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