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    Latvia - Dominance 2009
    "Raidla Lejins & Norcous"
    March, 2009
    All articles
    <...>
    Price and non-price discrimination

          The CL expressly provides that the abuse of dominant position may involve direct or indirect imposition or application of unfair purchase or selling prices or other trade conditions, as well as applying unequal provisions in equivalent transactions with third parties, creating competitive disadvantage for such third parties.

          For example, the CC determined that Rimaida, being in a dominant position in the market for distribution of the film Terminator 3: Rise of the Machines, imposed unfair (in particular circumstances discriminating) sales prices on a number of market participants, thus creating a competitive disadvantage. Although the CC noted that the abuse of dominant position is normally considered a grave violation of the CL, it imposed only the minimum penalty on the company in view of the fact that unfair prices were applied in connection with distribution of one film only and did not result in substantial adverse consequences in the relevant markets.

          In 2008, the CC also fined Latvian national copyright management society AKKA/LAA. The CC determined that the fee imposed by AKKA/LAA for public play back of music in shops and similar places was different in various cities of Latvia. The CC considered that such differentiation was unfair as AKKA/LAA was unable to show objective and clear justification for the application of substantially different fees depending on the place where the respective undertaking was located.

          

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