Quality of competition watch set to determine whether investment will flow to Latvia
PwC Competition Watch 2019, a survey conducted by PricewaterhouseCoopers Legal (PwC Legal) finds that Latvia needs closer collaboration and consultation with market players to minimise market distortions and build criteria for better market supervision.
Key facts and figures
The survey finds that businesses representing a total of 16 industries were fined over the period from 2002 to 2018, with most fines levied in construction, transportation, and wholesale & retail trade. These industries have historically faced the highest rate of shadow economy. Fines for prohibited agreements prevail in 88% of cases, with 254 out of 326 company breaches classed as serious.
It takes 381 days on average to handle a breach, with up to 510 days spent handling the most serious breaches. The duration of handling has increased over the years. The amount of fine as a percentage of revenue has also risen over the period from 2014 to 2018 to reach 2.5% of revenue.
The survey also finds that the Latvian Competition Council takes a comparatively flexible approach to fining. Since 2002, in 43% of cases the fine assessed originally was reduced during the fining process on grounds of relevance and efficiency, which are not prescribed under regulations issued by the Cabinet of Ministers.Find out more
Managing senior Associate, PwC Latvia
Tel: +371 6709 4400
Marketing & Communications senior specialist, PwC Latvia
Tel: +371 67094400