Construction cartel found in Saldus, Latvia

On April 26, the Competition Council (KP) decided to fine two construction companies - Gate L Ltd and Aksīte Ltd - for a prohibited agreement on the insulation of apartment buildings in Saldus, KP said May 2.

 The fine imposed on the two companies totals €108,472. 

The original information on the alleged breach of competition law was received by the Commission from the Central Finance and Contracting Agency. Taking into account the evidence obtained during the investigation of the case, the KP found that Gate L Ltd and Aksīte Ltd agreed on the terms of participation in the tenders of the Saldus City and Saldus Municipality Apartment Owners' Associations, reaching a mutual agreement in 2017 for the allocation of three houses on Nākotnes Street and in 2021-2022 for two houses on Veidenbauma Street.

The construction works were carried out with funding from the European Union Structural Funds.

The KP found that the two companies exchanged commercially sensitive information and formed an alliance to reduce competition in the tenders concerned.

Gate L was fined EUR 53 506 and Aksīte was fined EUR 54 965.

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