Latvian competition watchdog slaps cartel fines on several car dealers

The Latvian competition watchdog slapped fines, totalling 7.6 million euros (about 8.8 million U.S. dollars), on several car dealers for an illegal cartel agreement, the watchdog's representatives said Tuesday.

The fines have been imposed on authorized dealers and importers of Volkswagen autos in Latvia: SD Autocentrs, Ripo Autocentrs, Moller Auto Krasta, Moller Auto Ventspils, Moller Auto Latvia and Moller Auto Import, the Latvian Competition Council informed at a press conference.

One of the car dealers involved in the cartel was spared under a lenience program, as the information provided by this company helped the watchdog uncover the scam, the watchdog said.

The total value of the fines imposed on the companies is 7.635 million euros. The biggest fine, worth 5.051 million euros, has been charged on Moller Auto for systematic coordinated action aimed at eliminating competition in tenders.

Moller Auto Latvia was fined with 1.217 million euros, Moller Auto Krasta with 965,200 euros, Moller Auto Ventspils with 205,100 euros, SD Autocentrs with 124,900 euros, and Ripo Autocentrs with 72,700 euros.

According to the Competition Council, the companies had been coordinating their participation in tenders for at least five years to eliminate competition among them.

"The Competition Council found that the companies had an agreement among them not to compete in tenders. They, for example, allowed one of them to win a contract, while the others submitted coordinated and weaker bids or withdrew from the tender," said the council's representatives.

"The dealers regularly informed each other on their plans regarding particular tenders, asking others not to compete," said the representatives, adding that Moller Baltic Import, the importer of Volkswagen vehicles, not only knew and did not object to the illegal cartel, but to some extent even encouraged it, helping the companies to exchange information. Endit