AMENDMENTS TO THE LAW ON COMPETITION REDUCING FINES HAVE ENTERED INTO FORCE

On 1 May, amendments to the Law on Competition entered into force, reducing the base amount of fines imposed for infringements by half. In this context, the Government approved an updated Rules for Determining the Amount of Fines for Infringement of the Law on Competition.

Under the amended legal framework, the base amount of a fine calculated at the first stage is set at 50% of the maximum possible fine, i.e. reduced from 10% to 5% of the annual global turnover undertaking. At the second stage, the Competition Council continues to assess mitigating and aggravating circumstances. The amount of the fine may exceed the 50% threshold only where aggravating circumstances are identified or where an increase is applied to ensure deterrence in cartel cases.

These essential amendments are reflected in the updated Rules for Determining the Amount of Fines for Infringement of the Law on Competition, approved by the Government by its resolution of 29 April. The Rules establishe the methodology for determining fines and is intended to enable the Competition Council to impose proportionate and individualised sanctions on undertakings and public administration entities that infringe the Law on Competition and, where applicable, the Treaty on the Functioning of the European Union.

It should be recalled that in 2025, during the consideration of the draft amendments - initiated by business associations – the Competition Council cautioned that halving fines for serious competition law infringements, such as price-fixing arrangements between suppliers and distributors or cartel agreements between competitors, could limit the authority’s ability to apply EU-established fining principles and ensure effective deterrence. The Competition Council noted that reducing the maximum fine from 10% to 5% of annual turnover in certain cases could weaken both consumer protection and deterrence.

The Government also proposed that the Seimas not adopt the amendments. Subsequently, at the end of 2025, Seimas members were informed of the European Commission’s position, indicating that such regulation would not allow the authority to properly assess the gravity and duration of infringements or to impose proportionate sanctions in line with EU requirements.

Following a business initiative, the amendments to the Law on Competition were adopted and, with effect from 1 January 2026, provide that infringers may pay 50% of the imposed fine into the state budget where a decision of the Competition Council is appealed before a court.