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COMPETITION COUNCIL HITS CARTEL IN ENERGY SECTOR

11 02 2015

On 11 February, the Council found that Lukrida and Manfula sought to restrict competition in the market of combined heat and power plant construction. The companies used a third-party company Envija to fix a part of the price for internal combustion engines. Lukrida and Manfula set the minimum price for internal combustion engines sold to the two companies by Envija. Hence, the 3 companies breached Part 1 Article 5 of the Law on Competition and Part 1 Article 101 TFEU.

The Council found that the controlling persons of Lukrida and Manfula established the third-party company Envija and concerted actions in the relevant market. The collected data proved that the aforementioned controlling persons participated in the shareholders’ meetings of Envija, exchanged information and agreed on the minimum margin of 10 per cent applied to combustion engines purchased from Envija.

For a 2.5 year-long cartel the Council fined Manfula 333,900 euros and Envija 303,600 euros. Lukrida filed leniency application and, thus, received a total immunity from the fine of 656,600 euros.       

“It is one of the few cases when the Council opens an investigation following the testimony of a whistle-blower. We strongly encourage businesses not to breach the Law on Competition, but if cartel has already taken place, we invite to seek leniency and avoid fines.”- says Šarūnas Keserauskas, the Chairman of the Council.

Competition Council Spokesperson