The Competition Council (KP) of Latvia has taken action to address discrimination against self-employed individuals in the context of project funding competitions organized by the State Culture Capital Foundation (VKKF). Following a complaint, KP initiated an investigation into VKKF's restrictive practices that limited self-employed persons' eligibility for financial support, allowing them to apply only for specific scholarships rather than broader project funding.

During the investigation, KP found that self-employed individuals faced limitations that excluded them from applying for funding for larger projects, such as organizing events or publishing books. This was deemed contrary to the principle of competition neutrality, as it unjustly discriminated against a specific form of economic activity.

KP Chairman Juris Gaiķis emphasized the importance of self-employed individuals in Latvia's cultural landscape, as highlighted in the cultural policy guidelines for 2022-2027. He pointed out that many small and medium-sized enterprises, non-governmental organizations, and self-employed persons operate in the cultural and creative sectors, underscoring the need for accessible support instruments for these groups.

The investigation revealed that self-employed individuals constitute a significant portion of the cultural sector, reflecting its independent and specialized nature. The cultural sector often operates on a project basis rather than continuous commercial activity, making self-employment a more attractive option. Limiting support for this group could undermine the overall competitiveness and creative potential of the cultural sector.

As a result of the negotiations, VKKF has agreed to amend its project application system to allow self-employed individuals registered as economic operators with the State Revenue Service to submit project proposals through the same application form currently available only to legal entities.

Public entities, including state and municipal institutions, are prohibited from hindering, restricting, or distorting competition, as stipulated in the Competition Law since January 1, 2020. KP will continue to monitor compliance and may pursue further investigations if necessary.