LITHUANIAN SUPREME ADMINISTRATIVE COURT: MUNICIPALITIES RESTRICTED COMPETITION WITHIN HOUSEHOLD WASTE SECTOR

On June 17, Lithuanian Supreme Administrative Court (further - the Court) ruled that Klaipėda and Šiauliai municipal decisions whereby regional waste management centres (RATC) were authorised to provide household waste management services without a competitive procedure breached Article 4 of the Law on Competition.

On 28 December 2008, the Council found that the Municipalities granted privileges to RATC and, thus, discriminated against other undertakings willing to provide waste management services.

The Court upheld the Council’s decision and noted that municipalities have to ensure the freedom of competition whilst choosing the service provider. Competitive procedure can only be ignored in the case where the continuity, quality and accessibility of services cannot be ensured otherwise.

The Court also highlighted that municipalities have to encourage private initiative and put private companies forward for consideration first. Moreover, the possibility to refuse competitive procedures foreseen in the Law on Public Procurement and the Law on Concessions does not justify competition-restricting municipal decisions.