News

The Regional Administrative Court agrees with the Competition Authority of Latvia to fine AS „KIA Auto”

(17.03.2017.)

On 10 March 2017 the Regional Administrative Court has dismissed the application of AS „Tallina Kaubamaja” un AS „KIA Auto”, conforming the Competition Council’s of Latvia (the CC) decision to fine AS „KIA Auto”.

The CC, on 7 August 2014,  took a decision to fine AS „KIA Auto” for restricting car owners to perform repairs and maintenance not covered by warranty at independent services and to install spare parts of other manufacturers than KIA for a period more than 10 years. A fine was imposed on AS „KIA Auto” in the amount of EUR 134 514,43 jointly and severally with its parent undertaking AS „Tallinna Kaubamaja”.

Furthermore, AS  „KIA Auto” was imposed with legal obligations: a) to eliminate infringement, and b) to inform owners of KIA motor vehicles on their rights to perform maintenance and car repairs not covered by warranty to independent services without losing warranty of the car. In addition, without losing warranty it is possible to install not only KIA genuine spare parts, but also analogue parts in an adequate quality.

Estonian undertaking AS „KIA Auto” is the only importer of KIA brand cars in Latvia authorised by manufacturer. AS „KIA Auto” selects and approves authorised representatives to vend KIA vehicles and to perform warranty repair paid by manufacturer or importer.

The decision (available in Latvian only) made by the Regional Administrative Court may be appealed to the Department of Administrative Cases of the Supreme Court. A cassation complaints should be filled within a month from the decision date and submitted to the Regional Administrative Court.