PwC Competition Watch Latvia 2019

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.

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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.

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Māris Butāns

Māris Butāns

Managing senior Associate, PwC Latvia

Tel: +371 6709 4400

Anna Bērziņa

Anna Bērziņa

Marketing & Communications senior specialist, PwC Latvia

Tel: +371 67094400

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