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    Latvia - Dominance 2009
    "Raidla Lejins & Norcous"
    March, 2009
    All articles
    <...>
    Tying and leveraging

          Tying and leveraging by a dominant firm may be illegal under Latvian law. The CL provides that dominant undertakings are precluded from the imposition of provisions according to which the entering into, amendment or termination of transactions with other market participants makes such participants dependent on them, or these market participants accept such additional obligations as, by their nature and commercial use, have no connection with the particular transaction.

          The CC found abuse of dominant position in the activities of Hoetika-ATU. The company was in a dominant position in the market of removing household waste and offered customers discounts on this service on a condition that they use its disinfestation and disinfection services. It was ordered to discontinue the illegal practices.

          In a high-profile case, Lattelekom was fined for abusing its dominant position by offering ‘Comfort ISDN’, a package that combined three different services: lease of digital office telephone switchboards, connection of two ISDN lines, and voice telephony services in the public fixed-telecoms network. Lattelekom was in a dominant position in the voice telephony services market in the public fixed-telecoms network, and offered ISDN line subscription fee discounts and discounts on ‘Comfort ISDN’ service fees, constricting the market for the leasing of digital office telephone switchboards.

          In 2008 Latvijas propana gaze was fined for abuse of dominant position in the market of leasing of gas equipment and in the market of supplying liquefied petroleum gas. According to the standard client agreements of Latvijas propana gaze, clients were not allowed to use gas equipment leased from Latvijas propana gaze with the liquefied petroleum gas supplied by other companies.

          

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