GROUPS OF COMPANIES PROVIDING ELECTRONIC GRADEBOOK AND LEARNING PLATFORM SERVICES TO EDUCATIONAL INSTITUTIONS FORMED A CARTEL

The Competition Council has established that two groups of companies, which a few years ago were offering different electronic gradebooks and several digital learning platforms to educational institutions, formed a cartel and divided these business areas between themselves to avoid mutual competition. After the groups of companies acknowledged violating the Law on Competition and the Treaty on the Functioning of the European Union (TFEU), the institution reduced the fines imposed on them by 15%.

Until the fall of 2020, the Snowball.xyz group (together with other companies) controlled the Tamo gradebook and two digital learning-content platforms: EMA and Egzaminatorius.lt, while its competitor, the AL holdingas group (together with other companies), controlled the Eduka gradebook and the digital learning platform Eduka klasė.

The Competition Council found that in August 2020 the aforementioned groups of companies agreed to stop competing and to divide the electronic gradebook and digital learning-content businesses: the Snowball.xyz group retained the Tamo gradebook business, while it transferred its digital learning-content business to the AL holdingas group, which shut down the Eduka gradebook. Once the agreement was implemented, the electronic gradebook business went to the Snowball.xyz group, which had previously held the largest share of that market, while the digital learning-content business went to the AL holdingas group, which had previously held the largest share of that latter market.

“By agreeing to divide their activities and stop offering competing products, the groups of companies caused harm to educational institutions as well as to students and their parents. Their options were significantly limited, because they were essentially left with access only to the services of one gradebook and one digital learning-content platform provider,” said Jolanta Ivanauskienė, Chairwoman of the Competition Council.

Since the groups of companies acknowledged violating the requirements of the Law on Competition and the TFEU, the joint fines calculated for them were reduced by 15%: the companies of the Snowball.xyz group – Snowball.xyz, Šviesa, Tavo mokykla and Ateities pamoka – were imposed a joint fine of EUR 2,714,940; the companies of the AL holdingas group – AL holdingas, Ugdymo sprendimai and UNT nuoma – were imposed a joint fine of EUR 913,340.

The institution also investigated whether Snowball.xyz and AL holdingas could have implemented the merger earlier than they notified the Competition Council but terminated the investigation procedure due to insufficient evidence of a violation of the Law on Competition. It should be noted that in 2022, the institution granted permission to carry out the transaction, with Snowball.xyz accepting certain commitments. While investigating this merger, the Competition Council also encountered suspicions of a cartel formed by the groups of companies.

The decision may be appealed to the Regional Administrative Court within one month from the date of its notification or publication on the Competition Council's website.