COMPETITION COUNCIL APPROVED THE CANDIDATURE OF THE INDEPENDENT OBSERVER SELECTED BY RAUTAKIRJA OY

Having discussed in its meeting the candidature of an independent observer - the audit and the consultancy company UAB KPMG Baltics selected by the Finnish company Rautakirja Oy, the Competition Council approved the proposed candidature and the draft “Agreement on the Observer‘s Assignment“.

In October 2005 the Competition Council authorised Rautakirja Oy to implement concentration by acquiring 100 percent of the holding in the Vilnius agency of UAB Lietuvos spauda. However, with a view to avoiding the creation of a dominant position the Competition Council authorised the implementation of the concentration subject to certain obligations and conditions.

Among other conditions to which the implementation of the concentration was subject was the requirement, within the established time limit to submit to the Competition Council the candidature of an independent external observer assigned with the task of ensuring the monitoring of the discharge of obligations provided for in the relevant resolution of the Competition Council, and the draft contract concluded between Rautakirja Oy and the observer concerned. The Resolution stipulated that the task of the independent observer must be entrusted to an authoritative audit or consultancy company, also that the observer must hold the required qualification and be free of any conflict of interest in performing its duties. The observer must, being guided by an appropriate procedure, draw up reports on the fulfilment of obligations established in the resolution of the Competition Council. When requested by the publishers the observer must submit to them the reports in writing or ensure in some other ways that the reports are accessible to all publishers.

The observer will be assigned a responsibility to review and evaluate the contracts entered into by UAB Impress Teva and the Vilnius agency of UAB Lietuvos spauda with the publishers, retailers and competitors prior to the coming into effect of the resolution of the Competition Council to ensure that the restricting provisions contained in the agreements are appropriately modified. Furthermore, the observer shall be assigned with the task of monitoring of the fulfilment of the principal obligation, - to segregate the activities ensuring that the distribution and marketing of publications is effected through two independent entities.