The Competition Council (KP) has imposed a total of 513,508 euros in fines on the companies Adapteris, Alpex, Infrakom, Siltumtehserviss and Apkure IM for participating in a cartel of engineering-utilities construction firms.
Acting KP Chair Ieva Smite told a press conference that the uncovered cartel consisted of two groups: a Riga group (Adapteris, Alpex, Infrakom) and a Rezekne group (Siltumtehserviss, Apkure IM). The two groups were not connected.
The infringement was established based on information provided by Rigas namu parvaldnieks (RNP) and additional evidence obtained during the investigation.
Four companies – all but Infrakom – concluded a settlement with KP and pledged not to appeal the decision; their fines were therefore reduced by 10%. Smite added that after the decision was issued, Infrakom also asked to settle, and the request is being evaluated.
Fines were calculated as a percentage of the previous financial year’s net turnover: Alpex – 197,960.03 euros (2.25%) Adapteris – 105,761.60 euros (2.75%); Infrakom – 17,008.46 euros (2%); Apkure IM – 96,348.27 euros (3%); Siltumtehserviss – 96,429.72 euros (3%).
The violations involved coordinating bidding conditions in tenders for engineering network repairs. In the Riga group, Adapteris chiefly prepared tender documents; in the Rezekne group, Siltumtehserviss did so.
For the Riga group, the prohibited agreement was found in eight tenders run by Riga municipal companies and institutions. For the Rezekne group, the illegal coordination was found in 25 tenders with contracting authorities across Latvia.
In total, the cartel affected 33 tenders nationwide with contract values exceeding 4.5 million euros, with the prohibited agreements occurring from 2021 to 2024.
KP found that Adapteris, Alpex, and Infrakom exchanged commercially sensitive information and coordinated participation terms, bid content, and the submission of cover bids in eight public tenders-run by RNP, Ogres namsaimnieks, and the Riga City Housing and Environment Department-without genuine competition.
Between Siltumtehserviss and Apkure IM, KP found a single, continuous infringement across 25 tenders related to repair and construction work on engineering networks throughout Latvia, including tenders by the Livani, Valka, and Jelgava municipalities and Riga Technical University.
Evidence shows Siltumtehserviss and Apkure IM coordinated decisions to participate, prepared and submitted bids jointly, and also jointly carried out contract execution. In 11 of 25 affected tenders they submitted seemingly competing bids but had pre-agreed the winner, misleading the market, oversight bodies, and contracting authorities. Regardless of who formally “won,” both firms executed the contracts together, confirming they intentionally exchanged sensitive information and coordinated behavior to eliminate competitive risk.
Smite stressed that cartels were the gravest competition-law violations, artificially reducing competition and potentially causing significant harm to procurers and the public. She noted cartels still dominated public procurement, and in a business survey one in ten companies indicated willingness to join a cartel.
“This case clearly shows how crucial buyer involvement is in uncovering cartels,” Smite said, noting KP’s initial lead came from RNP.
She added that nearly all parties cooperated and settled, acknowledging their infringements and recognizing the benefits of such cooperation.
When asked whether the caught companies would be barred from future tenders, Smite said settlement was the first step to restoring trust. Contracting authorities will decide on participation, but given the settlements, KP will issue a positive opinion. Settlements also save public resources in investigations and potential litigation (now limited to fine amounts). With agreed payment schedules, the fines will be paid into the state budget.
The State Police Cybercrime Unit and the State Revenue Service’s Tax and Customs Police assisted KP in procedural actions and evidence gathering.
Under the Competition Law, anyone who has suffered damages from a competition-law infringement has the right to claim compensation.
For cartel agreements, there is a presumption of harm, and prices are deemed to have been raised by 10%. With its new function, KP will inform public buyers affected by the decision about their right to support in identifying, assessing, and calculating potential damages.
According to the Procurement Monitoring Bureau (IUB) site, in recent years Adapteris won several RNP tenders-for example, a 2023 tender for cold-water pump stations (contract value 800,000 euros), a 2023 tender for emergency engineering-network repairs (169,999 euros), and a 2022 tender for internal fire-hydrant maintenance (41,999 euros), among others.
Together with Alpex, Adapteris and two other firms won a 2022 RNP tender for maintenance of building heating systems (16 million euros total).
In 2021, Adapteris won Riga City Housing and Environment Department tenders for public toilet repairs (41,999 euros), emergency fence and gate repairs in municipal cemeteries (66,115 euros), and in 2022 another public toilet repair tender (122,728 euros).
Alpex in 2024 won Riga City Housing and Environment Department tenders for public toilet repairs (82,473 euros) and roof replacement at a municipal public toilet in Dzeguzkalns Park (15,060 euros).
Infrakom in 2024 won an RNP tender for emergency repairs on external water and sewer networks (169,999 euros); in 2023, a Riga City Department tender for pathway restoration in green areas (39,186 euros); and an RNP 2022 tender for emergency works on internal/external engineering networks (169,999 euros), among others.
In 2024, Apkure IM, Alpex, and Siltumtehserviss were three of four winners of an RNP framework for planned repairs and construction in sewage, heating, and hot/cold water systems (total 15 million euros).
Apkure IM and Siltumtehserviss also won, for example, a 2024 Ludza municipality tender to install a heating boiler at Nirza Library and Pusmucova parish administration (30,157 euros), and in 2024 Apkure IM won Nautreni administration’s tender to renovate Adamova Manor boiler house (108,871 euros). IUB data show many other wins by the involved firms.
KP opened the case on the 26th of September 2024 regarding a suspected cartel involving Siltumtehserviss, Apkure IM, Alpex, Infrakom, and Adapteris. In June, KP fined Siltumtehserviss 26,786 euros for procedural offenses-its board member/co-owner Maksims Aitovs failed to appear for procedural actions in Rezekne and deleted electronic data. (BNN)