The Competition Council has imposed a fine of EUR 1.873 million on retailer Maxima Latvija and set several legal obligations for engaging in unfair trading practices, according to the decision published by the Council.
The Competition Council’s decision states that Maxima Latvija applied unfair commercial practices in its cooperation with suppliers both before and after the entry into force of the Prohibition of Unfair Trading Practices Law, indicating that such conduct was of a continuous nature.
The Council also found that Maxima Latvija’s unfair practices were aimed at strengthening its competitiveness at the expense of agricultural and food suppliers.
According to the decision, due to violations of the Prohibition of Unfair Trading Practices Law in Maxima Latvija’s operations, the company is legally required to ensure non-discriminatory and fair treatment in its relations with suppliers. This includes providing an effective, transparent, and traceable negotiation process for determining the purchase prices of goods.
Maxima Latvija may not request lower purchase prices for goods than the current purchase prices in cases where a supplier has proposed a price increase.
If a price for an item in the assortment has not been agreed upon, the company may not take punitive measures against the supplier’s other goods, such as blocking, removing items from the assortment, withholding orders for an extended period, or rejecting or withdrawing products from promotions.
All price proposals and purchase agreements, as well as related decisions, must be made in writing or in an electronically traceable format to ensure transparency and accountability, and must be retained for at least one calendar year to guarantee prompt access to information.
As reported, Maxima Latvija intends to appeal the Competition Council’s decision.
“According to Latvian law, a retailer has the right to negotiate acceptable commercial terms or to refuse to purchase goods if the offered price is not acceptable,” the company said, noting that it has always focused on maintaining low prices for customers, which includes negotiating commercial terms with partners. Cooperation with suppliers is respectful, as evidenced by relationships with both local and international partners.
In 2024, Maxima Latvija achieved a turnover of EUR 1.102 billion, an increase of 2.6 percent compared to the previous year, according to Firmas.lv. The company also posted a profit of EUR 50.775 million, which was 10.2 percent lower than in 2023.
Maxima Latvija was established in November 2000 with a share capital of EUR 4.91 million. The company is owned by Lithuanian firms Maxima Grupe and Maxima LT.
Source: BNS
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