The Administrative Regional Court has fully overturned the Latvian Competition Council’s decision, which had found LDZ CARGO and its parent company guilty of abusing their dominant position in the rail freight sector.
The Administrative Regional Court has fully overturned the Latvian Competition Council’s decision, which had found LDZ CARGO and its parent company guilty of abusing their dominant position in the rail freight sector. This ruling annuls the EUR 5.7 million fine imposed and rejects the Council’s findings related to alleged abuse of dominance through loyalty-inducing pricing and unjustified charges for idle privately-owned wagons on public rail infrastructure.
The court concluded that the Competition Council failed to prove the scope and effect of the alleged conduct, misinterpreted critical facts – including LDZ CARGO’s justification for the idle wagon fees – and did not comply with required procedural safeguards.
This landmark decision sets an important precedent in Latvian competition law, reaffirming the necessity of solid evidence and fair procedure in abuse of dominance investigations.
Partner Sandis Petrovičs, associate partner Māra Stabulniece, and senior associate Elīza Siliņa worked on the matter.
