Amendments to Competition Law: Decision-Makers Also Liable for Bid Rigging
The Saeima has supported in second reading amendments that will allow holding not only companies but also their officials accountable for illegal agreements in public procurement.
On Thursday, June 11, the Latvian parliament (Saeima) approved in the second of three readings amendments to the Competition Law, expanding liability for prohibited agreements in public procurement. Previously, penalties were imposed only on companies as legal entities, but the new rules will also hold individuals – officials who made the decision to engage in illegal activities – accountable.
The amendments aim to strengthen competition and combat cartelization in public procurement, which often leads to higher prices and lower quality services. The new framework will apply to company executives, board members, and other persons responsible for decision-making.
The Saeima will still need to vote on the amendments in a third reading before they come into force. The changes are expected to significantly impact the business environment, encouraging officials to more carefully assess risks and comply with competition rules.
