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KELMĖ DISTRICT MUNICIPALITY DID NOT RECEIVE COUNCIL’S PERMISSION TO PROVIDE HEAVY VEHICLE WASHING SERVICES

The Competition Council refused to give a permission to a municipal company of Kelmė District Municipality regarding the provision of heavy vehicle washing services.

In order to obtain the Council’s permission to authorise a municipal company to engage in a new economic activity, the Municipality informed the Council about the survey they conducted in order to determine whether there are potential service providers. During the survey one undertaking provided a commercial offer, however, the Municipality improperly refused it as unacceptable.

Having analysed the application by the Municipality, the Council stated the Municipality did not prove that the service would satisfy a public interest and not that of the municipal company. Besides, the Municipality did not show that the service could not be provided by other undertakings.

The Council concluded that by authorising its municipal company to provide heavy vehicle washing services, the Municipality could discriminate against other market players or their groups, thus refused to grant permission.

According to the amendments to the Law on Self-Government of the Republic of Lithuania, from 1 July 2017 municipalities willing to engage in new economic activities have to obtain permission from the Council.