TRAKAI DISTRICT MUNICIPALITY CONTINUES GRANTING PRIVILEGES TO UAB TRAKŲ PASLAUGOS

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The Competition Council (hereinafter – the Council) found that Trakai District Municipality (hereinafter – Municipality) did not create non-discriminatory conditions for undertakings willing to execute maintenance works of public areas in Trakai District and, thus, failed to comply with the obligations imposed by the Council.

In 2009 the Council found that the Municipality privileged UAB Trakų paslaugos and, thus, breached Article 4 of the Law on Competition. The Council obliged the Municipality to amend the competition restricting decision and ensure that a competitive tender process takes place.

After repealing the competition restricting decision, the Municipality once again authorised UAB Trakų paslaugos to provide the aforementioned services without a competitive procedure and, thus, discriminated against other undertakings willing to provide the same services in Trakai District. The Council will refer to court so that these competition restricting decisions are eliminated.

Municipalities shall not conceal their actions under in-house contracts transactions and pretend to have eliminated market restrictions. According to the courts, in-house contracts may be completed only in highly specific cases on condition that competition rules have been followed. In this case, by making an in-house contract the Municipality ignored the Competition Council‘s obligation to ensure equal conditions for all market players

Jūratė Šovienė, Deputy Chairperson of the Competition Council

It is the second case of such non-compliance this year. In June the Council found that Kaunas City Municipality failed to create equal conditions for undertakings willing to compete for the provision of municipal waste collection and transportation services.

Article 4 of the Law on Competition stipulates that public administrative bodies shall be prohibited from adopting legal acts or other decisions which grant privileges to or discriminate against any individual undertakings or their groups.