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ARTICLE · 21 SEPTEMBER 2017

When Are Prices "Excessive": Did The Latvian Competition Authority Strike The Right Note?

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The ECJ has just ruled that competition regulators have a "certain margin for manoeuvre" in deciding whether prices are excessive, and that there is no single adequate method for such an assessment.

European UnionAntitrust/Competition Law

The European Court of Justice (ECJ) has just ruled that competition regulators have a "certain margin for manoeuvre" in deciding whether prices are excessive, and that there is no single adequate method for such an assessment.

In 2013, the Latvian Competition Council fined the Consulting Agency on Copyright and Communications and the Latvian Authors' Association (AKKA/LAA) over €32,000 for abuse of a dominant position. AKKA/LAA is a collective rights society: the only authorised entity in Latvia which can sell licences for the public performance of musical works for which it controls the copyright.

The Competition Council found that the licensing fees charged by AKKA/LAA were two to three times higher than those charged in Lithuania and Estonia.  After assessing the fees in line with the purchasing power parity index (PPP index), the fees were 50%-100% higher than the average level charged in all other Member States.  Only Romania charged higher fees to shops and

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