Car market, EU – Baltic States, Latvia, Legislation, Transport

Six companies – SD Autocentrs, Ripo Autocentrs, Moller Auto Krasta, Moller Auto Ventspils, Moller Auto Latvia, and the importer of Volkswagen automobiles in the Baltic countries, Moller Baltic Import have been ordered to pay a fine of EUR 7,635,183 for being members of a cartel. One more company has been fully exempted from the fine as the information it had provided helped the Competition Council break up the cartel.

According to the Competition Council's decision, Moller Baltic Import will have to pay a fine of EUR 5,050,542, Moller Auto Latvia – EUR 1,216,739, Moller Auto Krasta – EUR 965,197, Moller Auto Ventspils – EUR 205,104, SD Autocentrs – EUR 124,915, Ripo Autocentrs – EUR 72,684. The fine for SD Autocentrs was cut 10% as the company admitted its part, accepted the Competition Council's arguments, and said it would not contest the Competition Council's decision in court.

According to the Competition Council, the companies agreed not to compete with each other in procurement tenders – the dealerships regularly informed each other about their plans for various tenders, asking the other companies to either not bid or submit such bids that would not be beneficial for the prospective buyer.

The importer of Volkswagen vehicles in the Baltic countries, Moller Baltic Import, was fully aware of the cartel agreement, furthermore, the companies shared information about their plans with each other through Moller Baltic Import.

Although it is impossible to determine the precise number of those buyers of Volkswagen vehicles that have overpaid for their purchases as a result of the cartel agreement, it is clear that the number is very high – the cartel was formed a long time ago, and new Volkswagen automobiles are among the most popular in Latvia. Tenders mentioned in letters exchanged by the companies were organized by private companies, government institutions and agencies, local governments, schools (purchasing school buses), Interior Ministry's agencies and authorities, and others.

The Competition Council urges those who suspect that they have overpaid for their Volkswagen vehicles to turn to the dealerships that were involved in the cartel, demanding that their losses be compensated. Likewise, the Competition Council wants the dealerships to agree, of their own free will, on a procedure for compensating consumers for their losses.

Moller Baltic Import posted EUR 160,334,675 in turnover in 2013, a 4% increase on 2012. The company's profit totaled EUR 3,194,999 – 11% increase on 2012.

Moller Baltic Import has been operating in Latvia since 2008. The company's share capital is EUR 7,807,497, it fully belongs to the Norway-registered Harald A Moller AS.