SUPREME ADMINISTRATIVE COURT: KLAIPĖDA CITY MUNICIPALITY BREACHED COMPETITION LAW

The Supreme Administrative Court of Lithuania upheld the Competition Council’s decision, according to which Klaipėda City Municipality breached the Law on Competition by authorising five municipal companies to provide shared taxi services without a competitive procedure.

On 6 October 2015 the Council found that in 2012 some of the shared taxi routes were cancelled, while the other ones continued being served by the authorised service providers. Having awarded shared taxi service providers UAB Audresta, UAB AŠTUONIUKĖ, UAB DEVINTOJI BANGA, UAB Aisčiai, UAB DEŠIMTAS MARŠRUTAS with five-year contracts without a tender or other competitive procedure, the Municipality discriminated against other undertakings and thus breached the Law on Competition.

The final and binding decision of the Court confirmed that the Council legitimately obliged the Municipality to repeal the contracts signed with municipal companies.

According to the Law on Competition, public administrative bodies are prohibited from adopting legal acts or other decisions which grant privileges to or discriminate against individual undertakings or their groups.​