COURT IMPOSED SANCTIONS ON MANAGERS OF CARTELISTS

Vilnius Regional Administrative Court (Court) partially upheld the request of Konkurencijos taryba and restricted the right of D. L., manager of the company Ledevila, Ž. K., former manager of Elmis, and L. K., former manager of Vortex Capital, to occupy managerial positions in the public or private sector for their involvement in competition law breaches.

In 2017 Konkurencijos taryba found that the companies rigged bids (including the bid price) in public tender of construction and installation works, and created favorable conditions for Vortex Capital to win the tender.

When the decision of Konkurencijos taryba was upheld by Vilnius Regional Administrative Court and the Supreme Administrative Court of Lithuania, Konkurencijos taryba requested the Court to impose personal liability on the managers of cartel firms, as well as the fines of EUR 6,000 on each of them.

The request of Konkurencijos taryba has been satisfied partially. D. L., manager of Ledevila, has been disqualified from occupying a managerial position in the public or private sector or from being a member of a governing body for 2 years, while Ž. K., former manager of Elmis – for 6 months and L. K., former manager of Vortex Capital – for 3 years. L. K. also received a fine of EUR 1,000.

The ruling of the Court is subject to appeal.

So far the authority requested the Court to impose personal liability on 20 managers of cartel firms. In May 2018 the Court restricted the right of 4 managers to occupy managerial positions in the public or private sector for four years. Decisions on personal liability for 14 managers are still pending.

The Law on Competition stipulates that where a manager is found to have been involved in a prohibited agreement concluded between competitors or in the abuse of a dominant position, such manager may be disqualified from holding a managerial position in a public and (or) private legal person, or a from being a member of the collegial supervisory and (or) governing body of a public and (or) private legal person for a period of three to five years. Additionally, a fine of up to EUR 14,480 may be imposed.