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FOR PRICE CARTEL FINES IMPOSED ON 32 COMPANIES PROVIDING SHIP AGENCY SERVICES AND THEIR ASSOCIATION

08 12 2011

The Competition Council has examined and concluded that since 1998 to 2011 (13 years period) the Lithuanian Shipbrokers and Agents Association and a part of its members had been agreed to apply minimal ship agency tariffs and to monitor the compliance thereof. These actions constituted an infringement of Article 5 of the Law on Competition, which prohibits competition restricting agreements such as agreements among competitors to fix prices. Furthermore, infringement of Article 101 of the Treaty on the Functioning of the European Union has been also established.

Companies providing ship agency services manage customs and cargo documents, pay port dues and other charges, ensure the successful arrivals and departures in port, provide other necessary shipping services.

Rivalry in prices is one of the main forms for effective competition ensuring a possibility for buyers to acquire goods and services at the best terms. Having agreed on minimal prices for their services the companies providing ship agency services avoided competing on services’ prices and prevented the ship owners from enjoying advantage of the benefits provided by competition.

For the prohibited agreement the Competition Council imposed fines on the Lithuanian Shipbrokers and Agents Association and its 32 companies providing ship agency services. The total amount of fines constituted about 12 million litas. The main factors that influenced the amount of fines were gravity of the infringement and its long duration.

The fines imposed by the Competition Council for this prohibited agreement are the following: UAB „Afalita“ – LTL 42,400; UAB „Amber Bay“ – LTL 510,500; UAB „Arijus“ – LTL 1,223,600; Lithuanian and Latvian UAB „Astramara“ – LTL 50,500; UAB „Baltic Forwarding and Shipping“ – LTL 450,400; UAB „Baltijos pervežimai“ – LTL 1,861,900; UAB „Baltlanta“ – LTL 1,389,700; UAB „Baltnautic Shipping Ltd“ – LTL 235,000; UAB „BPA“ – LTL 321,700; UAB „Fertimara“ – LTL 138,400; UAB „Fregatų aptarnavimo agentūra“ – LTL 69,600; UAB „Green Terminal“ – LTL 189,600; UAB „Jungtinė ekspedicija“ – LTL 171,600; UAB „Jūrtransa“ – LTL 27,500; UAB „Jūrų agentūra Forsa“ – LTL 321,600; UAB Klaipėdos jūrų krovinių kompanija „Bega“ – LTL 1,184,100; UAB „Klaipėdos Translit“ – LTL 150,900; UAB „Lepūnas“ – LTL 241, 900; UAB „Limarko“ ir UAB „Limarko jūrų agentūra“– LTL 626,300; UAB „Litma“ LTL 518, 600; UAB „MK Laivyba“ – LTL 420, 000; UAB „Nordis Shipping Service“ – LTL 21,600; UAB „Nurminen Maritime“ – LTL 108,200; UAB „Okeaninių konteinerių servisas“ – LTL 347,300; UAB „Passat“ – LTL 151,200; UAB Prekybos namai „Skelmė“ – LTL 127,100; UAB „Unitek“ – LTL 8,200; UAB „Vakarų laivų agentai“ 211,500; UAB „Uosto vartai“ – LTL 73,100; UAB „VPA Logistics“ – LTL 337,700; UAB „Volfra – Klaipėda“ – LTL 44,900; UAB„WM H. Muller & Co“ – LTL 106,500; the Lithuanian Shipbrokers and Agents Association – LTL 800.– LTL

The companies and the Lithuanian Shipbrokers and Agents Association were obligated by the Competition Council to cease the infringement.

Competition Council Spokesperson