COMPETITION COUNCIL COMPLETED AN INVESTIGATION CONCERNING POSSIBLE RESTRICTION OF COMPETITION IN THE MARKETS OF CASH HANDLING AND CASH-IN-TRANSIT SERVICES

The Competition Council sent a Statement of Objections (SO) on the findings of investigation to AB DNB bankas (DNB), EUROCASH1, UAB (EUROCASH1), UAB First Data Lietuva, UAB G4S Lietuva (G4S), AB SEB bankas (SEB) and Swedbank, AB(Swedbank). According to the preliminary assessment of the investigators who prepared the SO, the actions of DNB, G4S, SEB and Swedbank allegedly restricted competition in the markets of cash handling and cash-in-transit services. The sending of the SO does not imply that it is already determined that the infringement was made by the above-mentioned companies and the findings of the investigation do not restrain the Competition Council in taking the final decision after completing all the procedures associated with this investigation.

The SO contains objections concerning the agreements concluded by G4S together with DNB, SEB and Swedbank. By these agreements the banks were obligated to buy all or most of cash handling services from G4S. According to the view of investigators, due to such actions the possibilities to compete for other providers of the cash handling services were substantially restricted. Furthermore, taking into account the fact that cash handling and cash-in-transit services (purchased by the clients of the banks) are interdependent, due to such agreements concluded between the above-mentioned banks and G4S, clients of these banks could buy cash-in-transit services only from one provider of security services - G4S. Such actions, according to the view of investigators, allegedly restricted competition in the market of cash-in-transit services, too.

The SO is a document prepared by the authorized officials of the Competition Council upon completing an investigation and sent to the parties concerned. This document is not public. Having received an SO, the undertakings suspected of an infringement get access to the investigation material and can reply in writing, setting out their explanations. The undertakings can also provide oral explanations during the hearing of the case at the meeting of the Competition Council. While adopting its final resolution, the Competition Council takes into account all explanations.

If the Competition Council considers the evidence of the infringement to be sufficient, it may require the undertakings to cease the infringement and impose the fine up to 10 per cent of the total annual revenue of the last financial year.