Latvia: The Competition Council might be interested in joint bidding agreements

Agreement to bid in a consortium for a public contract can be regarded as a cartel. Even though joint bidding is explicitly allowed by the Public Procurement Law to comply with the qualification criteria, such co-operation can be incompatible with the Competition Law, if (a) the members of the consortium are competitors, and (b) one of the members is capable of performing the contract by itself, and/or (c) the consortium is used as a guise for illegal information exchange.

The Competition Council is currently focused on anti-competitive agreements in the public procurement sector. The fine for cartel agreements is up to 10% of each participant’s annual turnover.

by Debora Pāvila, Partner, Latvia

Related Lawyers

Related Experience

Providing legal assistance to one of the largest Latvian glass manufacturers in a cross-border dispute with Italian company regarding the delivered goods. On 26 June 2019 the court satisfied client’s request to ensure the claim by seizing the debtor’s financial means in Italy.

Representing a marine insurance company in litigation against a Latvian retailer regarding the retailer’s failure to pay for the delivered goods according to United Nations Convention on Contracts for the International Sale of Goods.

Representing a Latvian top 15 company in an ongoing collective dispute with several trade unions. The dispute concerns the interpretation of the rules that determine the amount of compensation that employees may claim in case of business trips or work travel trips.

Representing the client before the State Employment Inspectorate regarding alleged discrimination of employees on the grounds of family status. The case shall clarify, whether employees must issue health insurance to employees, who are on parental leave.

Instagram