The Ministry of Agriculture denies illegally restricting the milk testing market: no damage was allegedly done
The Lithuanian Supreme Administrative Court determined that the Ministry of Agriculture unjustly prohibited a private laboratory from conducting milk tests, resulting in the dissolution of its monopoly on the testing market.
On January 7 of this year, the Lithuanian Supreme Administrative Court (LVAT) ruled that the Ministry of Agriculture (ŽŪM) had unjustly prevented a private laboratory from conducting tests on purchased milk. The court's decision highlighted that the legal basis for this restriction had expired in 2020, rendering the ministry's actions invalid. As a result, the only operational testing facility remains a state-run laboratory called 'Pieno tyrimai', which has rejected requests from private laboratories seeking to enter the market.
The court referenced the Milk Law, which was deemed unconstitutional due to a Constitutional Court ruling that invalidated its legal standing as of July 1, 2020. The LVAT underscored that subsequent amendments to this law could not be independently enforced, given that the primary legislation was removed from the legal framework. Therefore, the Ministry’s previous reliance on this law to support its actions was fundamentally flawed, leading to further scrutiny of regulatory practices in the agriculture sector.
This ruling has significant implications for the milk testing market in Lithuania. The LVAT's decision indicates that the monopolistic model established by the Ministry is no longer acceptable, opening the door for private laboratories to participate in the milk testing market. This move not only fosters competition but also potentially improves the accuracy and efficiency of milk testing services, which are essential for maintaining quality standards in the dairy industry.