Electricity

Estonia and the other Baltic States form a part of the European single electricity market. The European single electricity market means that there are several connections between different price areas and electricity is transferred from an area with lower prices (higher production) to an area with higher prices (higher consumption), in accordance with the connection capacity between different areas. The Estonian electricity sector is characterised by a very strong dependence on the power exchange, where bilateral contracts are not common.

Regulation Service

The Regualtion Service exercises supervision and regulates prices in the areas of electricity, natural gas, district heating and water. The focus of the service is the supervision over energy and water sectors, as well as railway and postal services. In addition, the Competition Authority resolves disputes related to airport and port charges.

Granting of permission to concentrate to RAGN-SELLS AS and AS Väätsa Prügila with obligations

RAGN-SELLS AS is a waste management undertaking whose principal activity is the collection and transport of municipal waste. RAGN-SELLS AS also had a holding in the undertaking OÜ AMESTOP engaged in the management of the landfill in Torma, Jõgeva County. AS Väätsa Prügila operates the landfill located near Väätsa, Järva County (Väätsa landfill).

Granting of permission to concentrate to A/S Dobeles Dzirnavnieks and AB Baltic Mill with obligations

At the end of 2021, Latvian undertaking A/S Dobeles Dzirnavnieks submitted a notice of concentration to acquire control over AB Baltic Mill. On 16 May 2022, the Competition Authority granted the permission to concentrate, subject to the parties fulfilling their obligations.

Prohibition of concentration of AS Eesti Post and AS EXPRESS POST

On 5 October 2022, the Competition Authority issued a decision prohibiting the concentration of AS Eesti Post and its sole competitor AS EXPRESS POST. This is the second time the concentration was prohibited. The same undertakings also wanted to concentrate in 2011, but the Competition Authority did not permit the transaction.

Supreme Court did not uphold the complaint of AS Eesti Post against the Competition Authority

In 2022, a court case involving the activities of postal undertakings was concluded in the Supreme Court of Estonia. AS Eesti Post filed a complaint with the Competition Authority, claiming that the undertaking had wanted to buy an early morning postal delivery service from AS Express Post to resell it to publishers. AS Express Post is engaged in the early morning postal delivery of periodicals in larger cities and the surrounding areas, primarily providing the service to its parent undertakings, ie publishing undertakings AS Ekspress Grupp and AS Postimees Grupp.

Prohibited joint tender for timber transport

The Competition Authority found that the large-scale joint tender submitted by OÜ Prenton in the public procurement for the road transport of round logs organised by the Estonian State Forest Management Centre (RMK) was anti-competitive. Consequently, the Authority issued a precept to the representative of the joint tenderers OÜ Prenton to cease co-operation between them at the request of the manager of the state forest.

Unlawful co-operation between sellers of grain dryers

Last year, one of the largest cartel cases handled by the Competition Authority was concluded. It involved criminal proceedings commenced against undertakings engaged in the sale of grain dryers, as part of which suspicions were filed against AS Tatoli, OÜ Agriland, AS Agribalt, OÜ Werneco, OÜ Baltic Agro Machinery (renamed OÜ BAM2), and OÜ Dotnuva Baltic.

Joint action of undertakings in the light of competition law

As the economic situation deteriorates and the revenues of undertakings decrease, the desire of undertakings to act together to defend their interests increases. This, however, could put businesses into conflict with competition law. It could happen even if co-operation takes place through a professional organisation. The Authority finds that, in addition to the defending of interests, such cases usually also involve a warning to cease the supply of goods upon non-compliance with wishes. This leads to a situation where undertakings decide together how they behave on the market.