On April 26th, the Competition Council (KP) decided to fine two construction companies - SIA "GATE L" and SIA "Aksīte" - for entering into a prohibited agreement by mutually distributing insulation projects for multi-apartment residential buildings in Saldus. Both companies settled with KP, thereby acknowledging their fault in the violation and committing not to appeal KP's decision, resulting in a reduced fine for both. The total fines imposed on both companies amount to 108,472.36 euros.

The initial information about the potential competition law violation was received from the Central Finance and Contracting Agency. Based on the evidence obtained during the investigation, KP found that SIA "GATE L" and SIA "Aksīte" agreed on participation terms in procurement, reaching a mutual agreement in 2017 for three Future Street houses and in 2021-2022 for the distribution of two Veidenbauma Street house insulation projects.

KP discovered that both companies mutually divided the insulation of two houses on Veidenbauma Street, including exchanging commercially sensitive information. KP also found that in the procurement for the insulation of Future Street houses, both companies formed a consortium, but did not perform the work in equivalent amounts at each site as stipulated by the contract; instead, each performed work at different sites. SIA "GATE L" carried out work at Future Street 7, while SIA "Aksīte" completed all work at Future Street 1A and 1B. Thus, the consortium was formed to reduce competition in these procurements and to exchange commercially sensitive information under the guise of the consortium.

KP Chairman Juris Gaiķis stated, "Insulating multi-apartment residential buildings using EU co-financing is a popular solution not only for improving energy efficiency but also for enhancing residents' quality of life. However, when organizing such projects, especially when organized by the residents themselves forming an association, it is important to remember to conduct procurement properly and attract fair competitors who have competed with the best offers at the best prices. In situations where the involved parties are willing to admit that mistakes were made during the project, a successful solution is the conclusion of an Administrative agreement or settlement, ending the legal dispute with KP and receiving a reduced fine, as happened in this case."

KP imposed fines on the involved companies, calculated as percentages of the companies' previous financial year's net turnover. Both parties to the case received a 10% reduction in their fines as a result of the settlement. SIA "GATE L" was fined 53,506.52 euros, and SIA "Aksīte" was fined 54,965.84 euros.