The Competition Council (CC) is increasingly scrutinising decisions and internal regulations adopted by professional associations. Recognising the fact that the actions of these associations may be subject to the Competition Law, the CC urges them to ensure that their decisions or internal regulations do not hinder or restrict competition among their members.
In 2023, the CC initiated an assessment of the prohibition against doctors poaching patients from their colleagues, as outlined in the Code of Ethics of the Latvian Medical Association. The CC concluded that such a prohibition could limit competition among medical professionals and prevent private practitioners from offering patients higher quality, more accessible services, at better prices. As a result of the CC’s engagement, the Latvian Medical Association revised the prohibition in its code of ethics with the aim of promoting competition among its members while safeguarding patient safety.
Juris Gaiķis, Chairman of the Competition Council: "Representatives of liberal professions, such as doctors, lawyers, notaries, and others, offer services for compensation and assume the financial risks associated with their services. Thus, representatives of liberal professions can be considered entrepreneurs, and therefore their actions within associations must adhere to the principles of the Competition Law, including the prohibition of agreements that restrict competition in the market. The most recent case law also confirms this, with the European Court of Justice ruling in January of this year that representatives of the liberal professions are to be considered entrepreneurs who are prohibited from agreeing on prices or otherwise restricting competition on the market."
The CC reiterates that the Competition Law applies to all entities engaged in economic activity, regardless of the legal status or financing of that entity. Economic activity is any activity that involves the offering of goods or services on the market. Consequently, professional associations are obliged to comply with the obligations laid down in the Competition Law and to comply with the prohibition on agreements where the purpose or effect is to hinder, restrict or distort competition in Latvia.
In view of the possible consequences of violations of prohibited agreements, the CC calls on professional associations to be particularly careful and not to make decisions or include provisions in internal regulations that may unduly hinder competition between members. As a preventive measure, the CC also calls for an assessment of the compliance of decisions or internal regulations of associations with the Competition Law.