News

The CC achieves change of competition restricting conditions of sublease agreements at Riga International Airport

(12.01.2018.)

After negotiation procedure with the Competition Council of Latvia (the CC), AS “Riga Airport Commercial Development”, which manages sales areas of Riga International Airport and on the basis of mutually concluded agreements leases these areas to other retailers, has changed competition restricting conditions of these agreements with sublessees.

SIA “Souvenirs I&N” addressed the CC with a request to assess, whether conditions of sublease agreement of AS “Riga Airport Commercial Development” are in conformity with principles of fair competition. After assessment of additional information, the CC initiated an inquiry concerning conditions of agreements on sublease of sales areas at Riga International Airport. 

AS “Riga Airport Commercial Development” leases retail sales areas of the airport to sublessees and simultaneously operates as a retail services provider in the territory of Riga International Airport, competing with sublessees – other retailers. During the inquiry, the CC identified risks in contractual relations between the manager and sublessees, which may negatively influence competition in provision of retail services at Riga International Airport. Namely, conditions included in agreements entitled AS “Riga Airport Commercial Development” to obtain commercial information of all sublessees in relation to sales of goods and to restrict the assortment offered by any particular sublessee.

AS “Riga Airport Commercial Development” expressed their readiness to cooperate with the CC to prevent further competition distortion risks and made amendments to the conditions of sublease agreements. Thereby, after completion of the negotiation procedure, the authority decided to cease the monitoring process without initiating a formal case investigation.