What are the functions of Konkurencijos taryba?
Konkurencijos taryba supervises the compliance of public and private entities with the Law on Competition. The authority investigates anti-competitive agreements, abuse of dominance, reviews merger notifications, evaluates whether draft legal acts or other decisions adopted by public entities comply with the Law on Competition.
Konkurencijos taryba also supervises whether 5 major retailers comply with the requirements of the Law on the Prohibition of Unfair Practices of Retailers and safeguard the interests of food and drink suppliers.
Having conducted investigations and identified infringements, Konkurencijos taryba imposes sanctions on the infringers.
What kind of agreements between undertakings might be considered illegal?
The Law on Competition prohibits agreements between companies which restrict or may restrict competition: contracts concluded in any form (written or oral), concerted practices, joint decisions of the associations of undertakings, informal agreements. Agreements to fix prices (cartels), limit production, share markets or customers, collude on public tenders, exchange commercially sensitive information are considered anti-competitive almost in all cases.
For more information, please see here.
Can persons expect a financial reward for valuable information on anti-competitive agreements between competitors?
Yes. As envisaged by the Law on Competition, a whistleblower may expect a remuneration ranging from EUR 1,000 to EUR 100,000 if the person provides evidence enabling Konkurencijos taryba to find an infringement.
For more information on a financial award, please see here.
Is it possible to provide information on an alleged infringement anonymously?
Yes, an informant may provide evidence about an alleged infringement anonymously.
What determines the size of the fines for cartel agreements?
The size of the fines imposed by Konkurencijos taryba is mainly determined by the turnover of the companies involved in an infringement, as well as by its duration. When deciding upon the fines, Konkurencijos taryba also evaluates the nature of an infringement, aggravating and / or mitigating circumstances. Cartel agreements may result in fines of up to 10 per cent of the total annual worldwide turnover of a company in the preceding business year.
For more information, please see here.
Which business transactions must be notified to Konkurencijos taryba and in what cases clearance must be obtained?
A merger must be notified to Konkurencijos taryba and clearance must be obtained if the combined aggregate income of merging parties in the business year preceding the merger exceeds EUR 20 million and the aggregate income of each of at least two merging parties in the business year preceding the merger exceeds EUR 2 million.
A merger notification must be submitted to Konkurencijos taryba prior to the merger implementation. A merger can be implemented only after a clearance has been obtained from Konkurencijos taryba.
For more information on merger control, please see here.
Is an underaking prohibited from occupying a dominant position?
No, occupying a dominant position is not prohibited, however, dominant undertakings must comply with stricter requirements as opposed to their competitors that do not exercise such market power. Companies are prohibited from abusing a dominant position within a relevant market by performing any acts which restrict or may restrict competition, limit the possibilities of other undertakings to act in the market or violate the interests of consumers.
For more information on the abuse of dominance, please see here.
When does Konkurencijos taryba conduct market studies?
The authority conducts market studies in order to find out whether effective competition is ensured in a particular market. Having conducted a market study, Konkurencijos taryba submits to certain institutions conclusions and proposals on the ways which could ensure more effective competition.
For more information on market studies, please see here.