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Latvian Authority Fines Utility Company for Abuse of Dominance

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The Latvian competition authority has fined 'Mārupes komunālie pakalpojumi' for abusing its dominant market position, leading to unfair charges for customers.

08.07.2025 | Latvian competition authority


The Latvian competition authority, known as Konkurences padome, has issued a ruling against 'Mārupes komunālie pakalpojumi' (MKP) for abusing its dominant position in the market. The authority found that MKP restricted competition in the installation and replacement of additional water meters in the Mārupes municipality, except for the Spilve village area.

As a result of MKP's actions, customers who only receive water supply services are also charged for sewage services, even if they do not utilize them. This has led to customers overpaying nearly three times for the services they actually receive.

The competition authority imposed a fine of €78,055.79 on MKP and mandated legal obligations to rectify the competition distortions caused by the company's practices. The authority determined that MKP holds a dominant position in three markets within the Mārupes municipality: centralized water supply, centralized sewage services, and the installation and replacement of additional water meters.

Previously, MKP allowed customers to install additional meters themselves or through certified companies, but in January 2022, it restricted this practice, claiming that only MKP could install and replace these meters. This effectively eliminated competition in this service area.

The authority concluded that there are no exclusive rights for water service providers to install additional meters, and other municipalities do not have a uniform approach to this practice. Consequently, MKP is required to provide these services under competitive market conditions and cannot unjustly limit customers' rights to choose their service providers.

Following the ruling, MKP must resume providing the additional service within three months and allow customers to install meters themselves or through certified companies. The company is also required to inform its customers about these changes through its website and other accessible channels.

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