Since LTAB admits its guilt in nthe infringement and undertakes not to appeal the KP decision, a reduction of the fine has been applied.
According to the Law on Compulsory Civil Liability Insurance of Land Vehicle Owners (OCTA), participation in the LTAB is a prerequisite for the commencement of activities in the OCTA market in Latvia.
To become a Member of the LTAB, several requirements had to be fulfilled for more than ten years, including a one-off accession payment, the amount of which was determined by the LTAB and which was an autonomous decision of the association.
Currently, 9 insurers' companies provide OCTA services in Latvia – four branches of foreign companies registered in Latvia and five branches of foreign companies registered in the Latvian market. Given that OCTA service can only be provided by LTAB members, the illegal behavior of LTAB affected the growth of competition in the OCTA market as a whole, the competition council said.
During the investigation, the KP found that the accession fee set by LTAB was not justified in its expected amount. Thus, the KP concluded that LTAB's actions during the period from at least April 20, 2011 until May 16, 2022 have prevented new market participants from entering the OCTA market in Latvia and are in contradiction with Article 101(1) of the Treaty on the Functioning of the European Union.
