The Competition Council explained why it fined Maxima Latvija nearly 2 million euros 0 13

The decision states that due to the identified violations, "Maxima Latvija" is required to establish non-discriminatory and fair relationships with suppliers, including ensuring an effective, transparent, and traceable process for negotiating purchase prices for goods.

The company is mandated to ensure that suppliers clearly understand that the purpose of specific negotiations is to agree on changes to the purchase price, as well as to initiate negotiations and offer suppliers to establish clear, balanced, and mutually acceptable terms for discussing changes to purchase prices in contracts. If "Maxima Latvija" proposes to change purchase prices, the approval period for new prices cannot be shorter than that specified in the contract unless the parties agree otherwise in writing in advance. If an agreement is not reached within six months, the existing contract terms must remain in effect, and "Maxima Latvija" cannot interpret or apply them in a way that unilaterally establishes favorable terms for itself.

The company is also required to consider and respond to reasonable requests from suppliers for price increases within the established timeframe if they are related to changes in regulations affecting specific goods, such as the introduction of a fee for participation in the deposit system.

"Maxima Latvija" is also prohibited from demanding lower purchase prices from suppliers than those currently in effect if the supplier has submitted a proposal for a price increase. That is, if a supplier proposes to raise the price, "Maxima Latvija" cannot respond by demanding a price lower than the current one.

If no agreement on price is reached for any product, the company is not entitled to impose sanctions on other products from that supplier — such as blocking, excluding from the assortment, prolonged non-acceptance of orders, refusal to approve the product for participation in a promotion, or excluding it from such a promotion.

All proposals for purchase prices and agreements reached, as well as decisions made by "Maxima Latvija," must be documented in writing or in a traceable electronic format, stored for at least one calendar year, and provide prompt access to information.

As previously reported by LETA, "Maxima Latvija" intends to appeal the decision of the Competition Council.

The company noted that Latvian legislation does not restrict the right of retailers to negotiate acceptable commercial terms or refuse to purchase goods if the price is not suitable. The company emphasized that it always strives to ensure low prices for customers, which includes discussing terms with partners. Cooperation with suppliers, according to the company, occurs with respect, as confirmed by both local and international partners.

Last year, "Maxima Latvija" achieved a turnover of 1.102 billion euros — 2.6% more than the previous year, while the company's profit decreased by 10.2% to 50.775 million euros.

The company was registered in November 2000, with a share capital of 4.91 million euros. The owners of "Maxima Latvija" are Lithuanian enterprises "Maxima grupe" and "Maxima LT," which are part of the Lithuanian business group "Vilniaus prekyba" controlled by Nerijus Numavicius.