HAVING CONCLUDED AN INFRINGEMENT OF THE LAW THE COMPETITION COUNCIL REFERRED TO THE CIRCUMSTANCES EXTENUATING THE LIABILITY

The Competition Council, having in its open meeting assessed the findings of the investigation and having heard the explanations of the parties concerned, passed the final resolution concerning compliance of the undertakings engaged in the milk purchase and processing business and the Association of such undertakings with the requirements of Article 5 of the Law on Competition. The Competition Council resolved that the undertakings, including the Lithuanian Milk Producers' Association Pieno centras, AB Kelmės pieninė, UAB Kelmės pieno centras, UAB Marijampolės pieno konservai, UAB Modest, AB Pieno žvaigždės, AB Rokiškio sūris and AB Vilkyškių pieninė, have committed the infringement of Article 5 of the Law on Competition, whereby all agreements which have as their object the restriction of competition or which may restrict competition are prohibited. It has been established that the undertakings referred to above have been exchanging confidential information about the quantities of raw milk purchased, quantities of individual milk products produced and marketed. The Competition Council resolved to impose the appropriate sanctions upon the undertakings that have, by virtue of such actions, infringed the Law on Competition. The Lithuanian Milk Producers’ Association and the undertakings were obligated to immediately cease the actions constituting an infringement of the Law on Competition.

The following fines were imposed upon the undertakings for the infringement of the Law on Competition: AB Pieno žvaigždės – LTL 865,900, AB Rokiškio sūris – LTL 824,800, UAB Marijampolės pieno konservai – LTL 256,500, AB Vilkyškių pieninė – LTL 183,800, AB Kelmės pieninė – LTL 76,300, UAB Kelmės pieno centras – LTL 21,700 and UAB Modest – LTL 7,000. The investigation in respect of AB Žemaitijos pienas that is not a member of the Milk Producers’ Association and has not participated in the exchange of confidential information was terminated.

The investigation was initiated by the Competition Council on the ex officio basis and completed within a comparatively short timeframe. (Investigations of a comparable scope normally last for a year or even longer.) The proceedings of the investigation included inspections of several undertakings, scrutiny of voluminous collected information, also assessment and comparison of statistical data, examination of the actions and communications between individual undertakings in addition to a comprehensive analysis of the situation in the dairy industry-related markets, covering the individual elements of the milk supply chain – ranging from purchase of raw milk to the production and marketing of various dairy products.

The infringement of Article 5 of the Law on Competition established by the Competition Council is related to the prohibited actions committed by the undertakings – an exchange between the members of the Pieno centras Association of the information affecting the behaviour of competitors in the markets, which eventually affects the final prices and causes the restriction of competition.

The investigation found a number of facts and circumstances evidencing that the undertakings, being members of the Association, have been exchanging confidential information, the possession whereof could have influenced the final decisions of the undertakings in the relevant markets. The membership in the Association itself does not entitle the undertakings to access to any confidential or restricted information. Such information was made accessible only to the members that themselves consented to disclose their data by signing appropriate authorisations to use such information.