SEIMAS APPROVED REDUCTION OF FINES FOR VIOLATIONS OF THE LAW ON COMPETITION  

Today, the Seimas adopted amendments to the Law on Competition (the Law) prepared by business organisations, which halve the base amount of fines imposed on offenders.

The members of Parliament approved the amendments to the Law, which stipulate that the base amount of the fine calculated after the first stage would be reduced to 50% of the maximum fine that can be imposed for the breach of the Law. The Authority will still be able to assess mitigating and aggravating circumstances in the second stage of calculating the fine, however, the maximum 50% limit may only be exceeded if aggravating circumstances are established or if the fine is increased for deterrence in cartel cases.

When considering the draft amendments to the Law, the Competition Council warned the lawmakers that halving the fines for dangerous infringements, such as retail price maintenance agreements between suppliers and distributors regarding goods important to consumers, or cartel agreements, would limit the Authority’s ability to take into account the fine-setting criteria established by the European Union (EU) law and to impose deterrent sanctions. The institution's experts pointed out that the amendments would weaken the protection of consumer interests and deterrent effect against competition law infringements.

The Competition Council also informed the members of Seimas of the position received from the European Commission, which stated that such legal regulation would prevent the Competition Council from properly assessing the gravity and duration of infringements and from imposing proportionate sanctions, as required under the EU rules.

The Government's conclusion on the draft law included the proposal that the basic amount of fines calculated after the first stage may not exceed 100% of the maximum amount that may be imposed for the infringement, which would be in line with the EU law. This proposal by the Government was supported by the Competition Council but rejected by the Seimas Economic Committee.

The amendments to the Law, once signed by President Gitanas Nausėda, should enter into force on May 1, 2026.