The Latvian Competition Authority (KP) has called on municipalities to evaluate their regulations concerning advertising fees to create equal and objective competitive conditions for all businesses. This initiative aims to ensure that no company is disadvantaged based on its legal address or the origin of its products.

KP has identified that several municipalities have regulations that provide advertising fee exemptions and differentiated coefficients based on the company's registration location or product origin. Such practices can create advantages for local businesses while limiting opportunities for others and hindering the free movement of services.

To prevent potential violations of competition neutrality regulations and European Union laws, KP is urging all municipalities to reassess their regulations to ensure that the application of advertising fees promotes equal competitive conditions.

KP will continue to monitor the decisions made by municipalities and will provide recommendations as necessary to foster a fair and open competitive environment throughout Latvia. Additionally, KP is prepared to offer advisory support to municipalities in evaluating the compliance of their regulations with competition neutrality.

Public entities, including state and municipal institutions and their owned companies, are prohibited from hindering, restricting, or distorting competition. This prohibition has been in effect since January 1, 2020, as stipulated in Article 14.1 of the Competition Law.

To ensure compliance with the law, KP engages in discussions with public entities or their owned companies. If compliance is not achieved during these discussions, KP may refer the matter to the Ministry of Smart Administration and Regional Development regarding violations in municipal actions or propose actions to the Minister of Economics if the violation arises from a regulatory act.