On September 24, 2026, the Latvian parliament supported amendments to the Criminal Code that impose criminal liability on individuals for forming prohibited agreements, or cartels, in public procurement.

Previously, only legal entities could face administrative penalties for such agreements. The new amendments allow for the prosecution of individuals who organize or participate in prohibited agreements, such as price-fixing or coordinating bids in public procurement.

Criminal liability applies to significant public procurement contracts, specifically those with a contract value of at least 750,000 euros excluding VAT, and for construction contracts, a minimum of 1 million euros excluding VAT.

Individuals found guilty of forming prohibited agreements may face imprisonment, as well as alternative penalties such as probation, community service, or fines. Additionally, there is a provision for supplementary penalties, including temporary bans on holding certain positions or engaging in specific types of business activities.

The amendments also allow for individuals to be exempt from criminal liability if they voluntarily report the violation and actively assist in its investigation after the prohibited agreement has been made.

Māris Spička, head of the Competition Council's Executive Institution, stated that cartel agreements in public procurement inflate prices and hinder the effective use of limited public resources for essential societal needs. Therefore, severe sanctions are crucial to deter such violations. The new regulations will also challenge law enforcement agencies and the Competition Council to collaborate more closely to achieve the intended goal of more effectively combating cartel agreements.

The amendments were developed following a Supreme Court ruling in a construction company cartel case, which concluded that the current regulations did not allow for the use of wiretap materials obtained during operational activities in administrative processes to prove competition law violations.