The Competition Council (KP) of Latvia has reported that from 2022 to 2024, its enforcement of competition policy is expected to yield an average public benefit exceeding €35.1 million per year. This impressive figure indicates that each euro allocated to the council results in a public benefit of approximately €10.01.

To arrive at this calculation, the KP analyzed decisions made between 2022 and 2024, assessing the price increases associated with various violations and the duration of these violations. The council also considered the positive effects of its preventive actions, such as warnings and negotiation procedures directed at companies or public entities that committed minor breaches of competition law.

It is important to note that the fines imposed on companies are not included in the public benefit calculation, as their primary purpose is to deter future violations rather than contribute to immediate public gains.

According to Ieva Šmite, acting chair of the KP, while the calculated direct public benefit presents impressive statistics, it only reflects the visible part of the iceberg regarding the positive impact of competition policy on society. The indirect benefits of the KP's activities, such as consultations, educational initiatives, and industry oversight, significantly deter market participants from engaging in violations, thereby fostering a fair and lawful competitive environment that is immeasurable in numerical terms.

In 2024, the most significant contributions to public benefit came from the eradication of cartels or prohibited agreements. The KP uncovered three illegal agreements in the wholesale and retail lighting equipment, construction and repair services, and catering sectors, resulting in a public benefit of €3.5 million from these actions.

The council's preventive work, which involved warning market participants and conducting negotiation procedures, generated a public benefit of €302,854.35 in 2024. A total of 22 preventive procedures were implemented for less significant potential violations, adhering to the 'Consult First' principle.

The KP's calculations are based on internationally recommended methodologies from the Organisation for Economic Co-operation and Development (OECD), European Commission guidelines, and practical insights from other highly regarded competition authorities worldwide, tailored to the specifics of the Latvian economy.