The Estonian competition authority has issued a strong reminder that all forms of agreements that aim to harm competition are illegal. Businesses must make independent decisions rather than relying on agreements with competitors.

Kadri Lepikult, head of the administrative proceedings department, stated that fair competition relies on companies acting independently in the market. Price decisions must be made autonomously, as good intentions or voluntary agreements do not exempt parties from liability if they constitute price-fixing or cartel behavior.

With the upcoming increase in value-added tax on July 1, there have been calls for so-called fair trading agreements. However, any price agreement—whether related to raising, not raising, lowering prices, or limiting the scope—can replace independent decision-making with coordinated actions, thus undermining genuine price competition.

Market sharing is also prohibited, which can manifest as non-recruitment agreements where employers agree not to hire each other's employees. This can also apply to the sharing of athletes among clubs. Lepikult stressed that sports clubs must recognize their status as businesses under competition law and adhere to its principles. Agreements that restrict clubs from freely recruiting players and employees can significantly harm competition and limit the mobility and development opportunities for athletes and coaches.

The competition authority advises businesses to operate independently and avoid actions that restrict competition or are otherwise harmful. Specifically, they should not agree on market sharing or pricing.

The authority is also seeking information on potential violations of competition laws. Tips can be submitted anonymously through the authority's website. If a party involved in a transaction provides sufficient information about a harmful agreement, they may qualify for leniency, which can lead to full or partial immunity from penalties.

The Estonian competition authority oversees competition in various sectors, including electricity, natural gas, district heating, postal services, water supply and sewage, railways, aviation, and ports, while also combating unfair trading practices in the agricultural and food supply chain. The authority operates under the Ministry of Justice and Digital Affairs.