SUPREME ADMINISTRATIVE COURT: ALYTUS CITY MUNICIPALITY GRANTED PRIVILEGES TO UAB LITESKO

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The Supreme Administrative Court of Lithuania (Court) rejected the appeal by Litesko and upheld the Council’s decision, according to which Alytus City Municipality infringed the Law on Competition.

On 9 September 2015 the Council found that the Municipality adopted decisions which created different market conditions to undertakings willing to participate in the process of modernisation of heat supply infrastructure in Alytus City.

In 2005 Alytus City Municipality extended the contracts with Litesko for an additional 10-year term without a competitive procedure (the contracts were originally signed for a 15-year term without the possibility of extension). In 2007 the Municipality also decided, unilaterally, to change the provisions regarding the transfer of investment and property by Litesko. The Court agreed that by doing so the Municipality granted privileges to the company and thus discriminated against other market players.