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Cabinet of Ministers Regulations No. 862 in 2004 (19 October. No 60 21) arrangements would be fine on competition law article 11, first paragraph, and article 13 of the above violations Issued in accordance with article 12 of the competition act in the fifth and the fourth paragraph of article 14 of the i. General questions 1. terms used in the rules: 1. a horizontal cartel agreement — an agreement between competitors, the purpose of which is to prevent, restrict or distort competition between them, including the agreement on the direct or indirect fixing of prices or tariffs in any way or building regulations as well as on the exchange of information relating to prices or sales terms, agreements on production or sales, markets, technical development or investment restriction or control of the agreement on the sharing of the market, considering the area, customers, suppliers or other conditions, and the agreement on the participation or non-participation in contests or auctions or on the actions (inaction);
1.2. horizontal cooperation agreements-agreements between competitors on common operations (such as joint procurement), in order to increase the effectiveness of the business.
2. determines the procedure for the determination of the fine on the competition act article 11, first paragraph and referred to in article 13.
3. the fine is calculated as a percentage of the market last closed fiscal year net sales before the finding of infringement.
4. If the competition law infringements committed in Latvia registered company in which decisive influence is foreign, foreign trader or merchant's affiliate, the fine is calculated from the respective company or branch the last closed fiscal year's net turnover.
5. If the competition law infringements committed referred to public person acting as a market participant, the fine is calculated from its operating income in the last fiscal year, but if there are none, to the competition law in article 12 and 14, the minimum fine.
6. the net change in the credit institutions shall adopt the following types of income amount after deduction of value added tax: income from 6.1 percent;
6.2. income from securities;
6.3. the Commission received remuneration;
6.4. financial operations net profit gained;
6.5. income from other business activities.
7. NET credit turnover includes revenue contained in the annual accounts of credit institutions and the consolidated annual accounts.
8. the net change in the insurance company accepts premiums gross signed value that includes all amounts received and receivable for insurance companies or on behalf of the concluded insurance contracts (including reinsurance premiums), after deduction of taxes and levies or compulsory payments, which reflects the insurance premium or the total amount of the bonus.
9. If the market operator is a natural person who is the individual income tax bill, the fine is calculated as a percentage of the last closed fiscal year revenue that natural person from operating.
10. If the operator is not able to create the last closed financial year accounts for the full financial year, the fine is calculated as a percentage of net turnover by market participants for 12 calendar months from the date when it started operations in the relevant market. If from the start up to the date of the finding of the infringement is gone in less than a year, the fine is calculated from the net turnover of market participants, from the date when the transaction is undertaken, the last full month before the date of the finding of the infringement.
11. If the market participant's last financial year's net turnover in foreign currency, the total amount of the fine in dollars is determined by the Bank of Latvia exchange rate on the date of the finding of the infringement.
12. If article 11 of the competition act referred to in the first paragraph of the infringement committed or not registered registered market participants (such as Association, Union) or its officials, the fine imposed on those operators who are members of the Association and participated in that breach.
II. The amount of the fine 13. Setting fines take into account the gravity and duration of the infringement.
14. in determining the degree of gravity of the infringement, take into account: 14.1. type of infringement;
14.2. the costs of the infringement or possible consequences;
14.3. each participating role of market participants in the infringement.
15. by type of infringement on violations considered vertical agreements and horizontal cooperation agreements which prevent, restrict or distort competition, for serious infringements — abuse of a dominant position and vertical agreements for the resale price of the buyer restriction, but for particularly serious infringements, horizontal cartel agreement and agreement containing restrictions on imports or exports.
16. the assessment of each of the actors involved in the infringement, take into account the following: 16.1. market participants was the instigator of the infringement;
16.2. market participant in the infringement had an active or passive role.
17. the total amount of the fine for the violation is calculated by summing the in accordance with the provisions of paragraphs 18 and 19 of certain fines.
18. in the light of the gravity of the infringement, the fine shall be determined by the following: 18.1. If done easily breach, up to 0.5% from last fiscal year's net turnover;
18.2. If done serious infringement, from 0.5 to 1.5%-in the last financial year the net turnover;
18.3. If done particularly serious offence, — from 1.5 to 7% from last fiscal year's net turnover.
19. in the light of the duration of the infringement, the fine shall be determined as follows: 19.1. If the duration of the infringement or infringements shall not exceed the annual manifests as a one-off operation, in accordance with the provisions of paragraph 18 of the specific amount of the fine does not increase;
19.2. If an infringement lasting more than one year but not more than five years, the fine is up to 0.5% from last fiscal year's net turnover;
19.3. If an infringement lasting more than five years, the fine is from 0.5 to 1% from last fiscal year's net turnover.
20. the total amount of the fine may be increased if there is at least one of the following aggravating circumstances: 20.1. market the same type of offence repeatedly committed within five years, and the competition Council (hereinafter Council) it has found and adopted the relevant decision;
20.2. the need to increase the penalty to exceed income, which market participants had been making the violations referred to in the Competition Act (if the illegal income amount is possible to objectively assess);
20.3. found that the market participant directly or indirectly forced other market participants to take action that is in violation of article 11 of the competition act the prohibition referred to in the first subparagraph.
21. the total amount of the fine can be reduced (However, the fine shall not be less than 250 lats), if there is at least one of the following mitigating circumstances: 21.1. infringement terminated as soon as the market received from Council information on potential competition law article 11, first paragraph, or referred to in article 13;
21.2. market participants voluntarily resolve the effects of the infringement, before the Council adopted the decision on the establishment of the infringement;
21.3. market, on its own initiative provided a full and true information or evidence, which played a vital role in 11 of the competition act in the first subparagraph of article or breach referred to in article 13 of the detection.
22. If the operator made several competition law article 11, first paragraph, or article 13 of the above irregularities and they look at one case for every point of the corresponding article in the infringement the amount of the fine shall be determined separately. The final amount of the fine calculated its fine, imposed for more serious offences.
23. where the market participant is committed to both the competition act article 11, first paragraph, and article 13 of the above irregularities and they look at one case for every infringement referred to in article the amount of the fine shall be determined separately. The final amount of the fine calculated its fine, imposed for more serious offences.
24. If the market last closed fiscal year net change in involved in the infringement on the relevant market is less than 10% of the market last closed fiscal year, the net change in the total amount of the fine can be reduced (However, the fine shall not be less than 250 lats).
25. Since the termination of the infringement, if older than five years and has not left significant negative market effects, the Council may impose a fine of 250 lats.
III. Horizontal cartel participants exemption from payment of the fine or a reduction of fines 26. If found in a horizontal cartel agreement, the Council exempted entirely from the market participants pay the fine for taking part in it, if the market participant has cooperated with the Council and there are all the conditions mentioned in this paragraph: 26.1. market, on its own initiative the first informed the Council about the horizontal cartel agreement, in which it is involved, and the Council was not in possession of information that would suggest the possible infringement cases or research to establish infringement.
26.2. the market operator shall provide the Council with all the available information and evidence;
16.3. the Council provided information and evidence of potential competition law violations referred to is enough to be able to propose possible infringement cases or research to establish infringement.
26.4. throughout the course of the infringement of the market operator is actively cooperated with the Council;
16.5. market participants was not proposing a specific prohibited agreement or prohibited activities it has been maintained, and it is not by pushing other market participants to participate in activities prohibited.
27. If the alleged infringement case study on horizontal cartel agreement already proposed, market participants that, on its own initiative provided the Council with information that is relevant to the specific evidence of the infringement, the fine applicable reduction is as follows: 27.1. the operator who first provided the above information — from 50 to 90% but reduced the fine shall not be less than 500 lats. The Council reduced the fines, if the provision of information at the moment they do not have the relevant information, and there is this rule 26.4 and 26.5. the conditions referred to in (a);
27.2. the other market participants — from 30 to 49%, but reduced the fine shall not be less than 500 lats. The Council reduced the fines, if the provision of information at the moment they do not have the relevant information, and there is this rule 26.4. the conditions referred to in point.
28. If the operator considers that this provision applies to the 24, 26 or 27 that the conditions referred to in paragraph, it shall submit to the Council a reasoned submission.
29. The Board assessed the information provided by market participants and its compliance with this provision, 24, 26 and 27. the conditions referred to in points.
30. If the Council fine reduction or exemption from the fine actors to apply in accordance with the provisions of paragraphs 26 and 27, paragraph 21 of these rules in relation to that market participants are not applicable.
Prime Minister i. Emsis economic Minister j. lujans Editorial Note: rules shall enter into force on 23 October 2004.
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