The Competition Council (CC) established that the activities of the joint stock company VAS “Latvijas Valsts meži” (LVM) do not violate the norms of the Competition Law. Attorneys at Law Liepa, Skopiņa/BORENIUS represented LVM before the Competition Council.
The case was initiated on the basis of the application filed by several timber cutting and wood processing companies requesting to verify the price formation policy of LVM and the eventual abuse of dominant market position.
Having examined the case on its merits, CC established that LVM as the largest market participant is in a dominant position in growing stock sale market in the Republic of Latvia, though LVM is not in a dominant position in round timber sale market. During examination of the case no abuse of the dominant position was established in the activities of LVM. Both – the price formation mechanism – tender and the requirements applied to companies willing to conclude timber cutting or round timber purchase contracts were recognized justified and not leaving an adverse impact upon competition.