COMPETITION COUNCIL HAS RIGHTLY IMPOSED A FINE ON UAB PALINK

On 18 October 2013, the Supreme Administrative Court of Lithuania upheld the Competition Council’s decision to impose a fine on UAB PALINK for the infringement of the Law on the Prohibition of Unfair Practices of Retailers of the Republic of Lithuania (LPUPR or the Law).

On 6 June 2012, the Council determined that UAB PALINK had infringed the Law.

The agreements on the provision of advertising services concluded between UAB PALINK and food and drink suppliers included thecompany’s request not to provide other retail companies with analogous goods for the same or lower price during the period of the advertising campaign. The Council estimated that such an obligation not only restricted the supplier’s freedom to set the prices of analogous goods to be sold to other companies but also limited the possibilities of the companies to purchase the goods from the suppliers under more favourable conditions than UAB PALINK. As a result of the aforementioned, the interests of all consumers were possibly harmed. After careful examination the Council detected the infringement and imposed a fine of LTL 360,000 on UAB PALINK.

UAB PALINK applied to Vilnius Regional Administrative Court and the latter reduced the fine to LTL 280,000. The Supreme Administrative Court of Lithuania upheld this decision and, thus, acknowledged that the Council had rightly imposed the fine on the company.

“We are happy with the decision adopted by the Supreme Administrative Court. We believe that the non-appealable judgement of the Court will have a strong deterrent effect on UAB PALINK and other market participants. Effective competition is beneficial to both the suppliers and traders; simultaneously it is beneficial to every consumer as the quality of goods is likely to increase and prices are likely to drop” - says Šarūnas Keserauskas, the Chairman of the Council.