UAB VILNIAUS ENERGIJA INFRINGED THE REQUIREMENTS OF THE LAW ON COMPETITION

In its meeting the Competition Council examined the findings of the investigation concerning the compliance of actions of UAB Vilniaus energija with the requirements of Article 9 of the Law on Competition of the Republic of Lithuania, also heard the explanations of interested parties and passed the appropriate decision. The Competition Council resolved that the imposition of unfair prices in the market for the lease of communication tunnels in the Vilnius city by UAB Vilniaus energija constituted an abuse of the dominant position. UAB Vilniaus energija was obligated to terminate the actions contradicting the Law on Competition. For the infringement of the requirements of Article 9 of the Law on Competition UAB Vilniaus energija was subjected to a fine in the amount of LTL 178,000.

The investigation concerning the actions of UAB Vilniaus energija was launched upon the initiative of the PE Teleradijo kompanija Hansa. The investigation aimed to establish whether UAB Vilniaus energija acting as the manager and the operator of the communication tunnels in the city of Vilnius was abusing its dominance in the market for the lease of communications tunnels in the city of Vilnius (underground collectors and technical corridors).

The investigation established that the tunnels in the city of Vilnius designed for the building and operation of the municipal engineering communications are being leased in Vilnius exclusively by UAB Vilniaus energija, as a result leaving no other alternatives to other lessees that need to lay down their communications facilities. Since UAB Vilniaus energija face virtually no direct competition in the market for the lease of communications tunnels in Vilnius within the meaning of the Law on Competition the company holds the dominant position in the relevant market. The investigation conducted by the competition authority established that UAB Vilniaus energija was abusing its dominant positing – having deviated from the rates established by Resolution No. 843V of 1996 of the Board of the Vilnius Municipality the company subjected the lessees to unfair prices.

After establishing the infringement of the Law on Competition, Competition Council considered the sufficiently long duration of the infringement – since April 2002, when imposing the fine.