Latvian Competition Council proceeding

SIA Merks, part of AS Merko Ehitus group in Latvia, has been involved in the administrative proceeding by Latvian Competition Council since 3 September 2019. The purpose of which was to ascertain whether there have been infringements of competition law in Latvia by construction companies.  

Summary

On 9 August 2021, SIA Merks received the decision of the Latvian Competition Council regarding the company, according to which SIA Merks is considered as one of nine companies to be a participant in prohibited cooperation between Latvian construction companies in the period of 2015-2019, which constitutes a violation of Section 11 Subsection 1 of the Latvian Competition Law. According to the decision, AS Merko Ehitus as the parent company of SIA Merks is jointly liable in case SIA Merks does not or cannot itself fulfil its obligations. To group’s knowledge, SIA Merks is not considered to be a participant in price agreements.

SIA Merks considers the conclusions of the Latvian Competition Council concerning SIA Merks’ business practices to be unfounded and unsubstantiated, both factually and legally. On 13.09.2021 SIA Merks and AS Merko Ehitus appealed the decision of Latvian Competition Council to the Latvian administrative court. The fine imposed by the Competition Council will not become due and all other possible consequences under Latvian law will not take effect until the final court ruling enters into force.
It is not yet possible to assess reliably the impact of potential damage claims on the company due to the large number of inputs open to change, the lack of practice of implementing joint and several liability and the ambiguity of other legal aspects.

Merko Ehitus group is committed to promoting and implementing ethical business standards and behaviour, as well as compliance with all applicable laws and regulations governing business practices. Any possible infringement of fair competition is in violation of the operating principles and values of the group.

Additional information can be found in the additional materials referred on this page.