COMPETITION COUNCIL: THE ORDER OF SETTING AND DISTRIBUTING QUOTAS FOR FISHING IN THE BALTIC SEA BREACHES THE LAW ON COMPETITION

On 16 July, the Competition Council (KT) determined that the Rules of setting and distributing quotas for fishing in the Baltic Sea (the Rules, namely, points 9, 18, 19 and 22) adopted by the Ministry of Agriculture fail to comply with Article 4 of the Law on Competition.

Having received a complaint from the Lithuanian Fisheries Producers Association (the Association), the Competition Council (KT) opened an investigation. The Association suspected that the Rules might restrict competition.

Having carried out a careful investigation, the KT found that certain points set out in the Rules create different conditions of competition and, therefore, breach the Law on Competition. Different conditions of competition arise because of the following:

(1) fishing quotas are set and distributed with regard to the historic catch rates only;

(2) a sole undertaking has an opportunity to receive up to 80 per cent of all the fishing quotas;

(2) no objective criteria are set for new market participants who seek to receive fishing quotas.

Having regard to the fact that the aforementioned points 18 and 19 ceased to be valid on 2 May 2014 under the order of the Minister of Agriculture, the KT obligated the Ministry of Agriculture to repeal or amend the remaining points, i.e. 9 and 22, and, thus, eliminate the breach of Article 4 of the Law on Competition.