Competition: Non-food retailers should review their contracts.

It is the last moment for non-food retailers to review contracts with their suppliers in order to adjust their provisions to the Unfair retailer practice prohibition law (“URPPL”), which will enter into force on 1 January 2016. Until then any relationship between suppliers and retailers is still being regulated by the Competition Law, which expressly prohibits abuse of dominance in retail trade (“ADR”). ADR mainly covered the retail industry’s food sector as the Competition Council (“CC”) has only once applied this legal concept towards non-food retailer, namely,  when it fined AS “Drogas”. Nevertheless, given the fact that our partners Debora Pāvila and Jūlija Jerņeva were actively involved in the discussions on drafting of URPPL, CC’s recently published guidelines on application of URPPL, we can foresee that at least one exemplary case will arise also in the non-food retail sector.

For more information in Latvian, please see our INSIDER.

by Debora Pāvila, Partner, Latvia

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