SUPREME ADMINISTRATIVE COURT UPHELD COUNCIL'S DECISION ON CARTEL IN ENERGY SECTOR

The Supreme Administrative Court of Lithuania upheld the Competition Council‘s decision of 11 February 2015, according to which two competitors UAB Lukrida and UAB Manfula fixed the prices of internal combustion engines purchased from UAB Envija and restricted competition in the combined heat and power plants construction market.

The Court agreed that the companies infringed the Law on Competition and the Treaty on the Functioning of the European Union. The conclusion was drawn in light of the Council‘s arguments, according to which Lukrida and Manfula coordinated their behaviour through Envija and refused to make independent decisions regarding the price of internal combustion engines purchased from Envija. The agreement might have resulted in higher prices of combined heat and power plants construction works where internal combustion engines are used.

The Council opened the investigation in 2013 after receiving a leniency statement from Lukrida concerning the price fixing agreement with its competitor Manfula.

The Supreme Administrative Court of Lithuania upheld the fines which the Council imposed on the Companies: Manfula – EUR 333,900, Envija – EUR 218,696. The Court also confirmed that the Council made the right decision on immunity from EUR 656,600 fine applicable to Lukrida after the company applied for leniency. According to the Council’s leniency programme, a cartel participant who first submits information available to him and collaborates with the Council during the investigation, may be granted immunity from a fine or offered up to 75 per cent reduction in fine.