MAXIMA LT, UAB SANCTIONED FOR THE INFRINGEMENT OF THE LAW ON COMPETITION

The meeting of the Competition Council examined and assessed the findings of the investigation of the actions of MAXIMA LT, UAB constituting an infringement of the Law on Competition where the company in the period 2002-2006 implemented 9 concentration transactions without having notified them to the Competition Council and obtained the appropriate permissions. During the period concerned MAXIMA LT, UAB was leasing or acquired by title a number of premises of commercial purpose in a variety of sites of Lithuania which the company used for retail trading in food products and household items. In accordance with the requirements of the Law on Competition a notification on an intended concentration transaction must be filed to the Competition Council prior to implementing the concentration transaction.

The Competition Council established and concluded that the actions of MAXIMA LT, UAB whereby the company leased the premises of commercial purpose located at Naikupės St. 18 in Klaipėda, Sporto St. 16 in Marijampolė, Savanorių Av. 375 in Kaunas, Pramonės Av. 16 in Kaunas, Gedvydžių St. 17 in Vilnius, Vytauto St. 98/Senojo turgaus St. 1 in Palanga, Gelvonų St. 35 in Vilnius, and acquired by title the premises located at Lietuvininkų St.58 in Šilutė and J. Basanavičiaus St. 53 in Kėdainiai without having filed a prior notification to or obtained the permission from the Competition Council to implement the concentration constituted an infringement of the requirements of the Law on Competition for which MAXIMA LT, UAB was subjected to a fine in the amount of LTL 100,000.

When imposing the fine the Competition Council took into consideration the mitigating circumstance – in May 2008 MAXIMA LT, UAB notified the Competition Council of the concentrations already implemented without having in advance obtained the authorisation of the Competition Council and submitted the required documents.

Last month the Competition Council having assessed the current situation in the market concluded that the actions of MAXIMA LT, UAB whereby the company leased premises of commercial purpose in a number of towns (Klaipėda, Vilnius and Marijampolė) had raised some competition concerns. At the time of the examination of the notification on the concentration transaction it was discovered that although the degree of concentration, as a result of the concentration deals, had increased only to a slight extent, the significant market share held by MAXIMA LT, UAB could potentially create the dominant position in individual local markets. Having considered this, on 18 September 2008, the Competition Council passed the resolution to authorise the concentration according to the submitted notification subject to certain conditions and obligations necessary to address some of the competition issues on the local markets.