The Lithuanian Competition Council has concluded that Panevėžys City Municipality violated the Law on Competition by engaging in in-house transactions with a company it controls, Panevėžio specialus autotransportas.

The investigation revealed that the municipality did not conduct a competitive procedure before awarding waste management services to its own company. It failed to explore whether other market players could provide these services effectively.

Furthermore, the municipality's analysis did not demonstrate that in-house transactions were the only viable option for adequate waste management services. The lack of assessment regarding the quality and availability of services from other suppliers was a significant oversight.

As a result, the municipality's actions restricted competition and favored its controlled company, violating competition laws. Although the legal framework changed during the investigation, the Competition Council opted not to impose a fine.

The municipality is required to revoke its in-house transaction decisions made in 2025 within six months and to select new service providers in accordance with legal procedures.

The decision can be appealed to the Regional Administrative Court within one month of its publication. This case follows a previous ruling by the Constitutional Court in October 2024, which found that the legal framework for in-house transactions was unconstitutional.