State forestry company Latvijas Valsts meži fined almost €8 million
Latvia's Competition Council has fined state forestry company Latvijas Valsts meži (LVM) nearly €7.9 million for granting certain timber processors access to state timber without public auctions over a period of more than six years.
Latvia's Competition Council has found that state-owned company Latvijas Valsts meži (LVM) committed a long-running breach of competition rules, imposing a fine of almost €7.9 million on the company.
According to the council, the violation lasted for more than six years. Under long-term contracts, LVM allowed certain timber processing companies to obtain state-owned timber without going through public auctions, while other businesses had to compete for the same raw material in open tenders.
Ordered to change practice immediately
The Competition Council has instructed LVM to immediately stop this unequal treatment and to sell timber going forward on equal terms to all market participants.
LVM is one of the largest timber suppliers on the Latvian market, and its handling of state forest resources has a direct impact on competition conditions in the local wood-processing industry.
