On February 5, 2025, the Latvian Competition Authority (KP) conducted procedural actions as part of an investigation into potential violations of competition law in the coffee machine distribution market. The investigation focuses on three companies involved in the sale of coffee machines.

The KP has gathered information suggesting that these companies may be engaging in resale price fixing, which artificially maintains a uniform price level for specific manufacturers' products. This practice can lead to consumers paying higher prices than they would in a competitive market where retailers set prices independently.

Resale price fixing is considered a violation of Article 11(1) of the Competition Law, which can result in fines of up to 5% of a company's net turnover from the previous financial year. The KP's procedural actions aim to ascertain the existence of any violations by the involved market participants and to collect necessary information and evidence during the investigation.

These actions are being conducted in parallel with similar investigations in two other EU member states, where each country's competition authority is examining potential resale price fixing in the coffee machine distribution market. The KP emphasizes that any findings of violations will only be confirmed at the end of the investigation process.

Furthermore, the KP does not rule out the possibility that other market participants may also be involved in the alleged violation, and the scope of the investigation may be expanded or narrowed as necessary. The KP encourages market participants who may be involved in the potential violation to utilize the leniency program by reporting the infringement, which could lead to full immunity from fines or a significant reduction in penalties.