Court cancels Competition Council’s fine imposed on “Rīgas satiksme”
On May 9, the Administrative District Court of the Republic of Latvia ruled illegal the decision of the Competition Council “On Establishing the Violation and Imposing a Legal Obligation and a Fine” of February 27, 2017 with regard to „Rīgas satiksme”, and cancelled the fine in the amount of EUR 2.2 million.
Earlier “Rīgas satiksme” announced having appealed against the Competition Council’s decision which recognized that the agreement between “Rīgas satiksme” and “Rīgas mikroautobusu satiksme”, under which the price of the increased level comfort service shall not be lower than the tariff set by Riga City Council, was restricting competition.
In its appeal submitted to the Administrative District Court, “Rīgas satiksme” pointed out that it deemed the Competition Council’s decision to impose the fine illegal, as the Competition Council had no right to evaluate these prices. The laws regulating the public transportation sector and the contract on the order for public transportation services oblige “Rīgas satiksme” to comply with the tariff set by Riga City Council. All the subcontractors involved in the service delivery shall further comply with this obligation.
The Administrative District Court has come to a conclusion that the Competition Council has exceeded its powers when evaluating the legitimacy of the action of “Rīgas satiksme” and its subcontractor. In its judgement, the court recognized that the subcontractor, “Rīgas mikroautobusu satiksme”, may not set the tariff independently. Thus, the agreement between “Rīgas satiksmе” and “Rīgas mikroautobusu satiksmе” was not a cartel but a legitimate act regulating the public transportation sector.
The court has fully granted the application of “Rīgas satiksme” by cancelling the fine in the amount of EUR 2.2 million. In its judgement, the court also recognized that in this particular judiciary situation it is impossible to comply with the obligation imposed by the Competition Council – to set the price independently.
You can find more information on „Rīgas satiksme” services, route schedules, types of tickets and other news at www.rigassatiksme.lv and also in social networks, such as Twitter, Facebook, and draugiem.lv .
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