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The Supreme Administrative Court of Lithuania (Court) upheld the Competition Council’s decision, according to which Šiauliai City Municipality granted privileges to the municipal company Busturas and restricted competition in the sector of passenger transportation services for 10 years.

The Municipality authorised Busturas to provide passenger transportation services without a competitive procedure and thus discriminated against other undertakings operating in the market. 

The Court stated that an undertaking can be authorised to provide passenger transportation services without a competitive procedure only if municipal companies or private undertakings are not able to participate in the procedure on equal terms. However, the Municipality did not prove that the service provider could not be chosen by the competitive procedure.

According to the final and binding decision of the Court, Šiauliai City Municipality will have to comply with the Council’s obligation – conduct a competitive procedure and terminate the contracts signed with the municipal company.