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Skrastins & Dzenis Succeeds in Challenge to Competition Council Order

Latvia
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The Skrastins & Dzenis law firm has successfully represented SIA Veiksme un K., a Latvian retailer of home electronics trading with the "Tehnoland" trademark, in a case against the Latvian Competition Council.

According to S&D, the "novel" case involved the Competition Council's attempt to apply the inevitability of liability principle in issuing a fine against SIA Veiksme that was previously imposed on another company, which no longer existed.

According to S&D Associate, Daina Bukele, who worked on the matter, the company originally fined was a sister company of SIA Veiksme that was partly owned by the same shareholders. As a result of its insolvency, SIA Veiksme partly took over the business, including the trademark and stock.   

Bukele explained that "several years after the original infringement decision against the sister company the Competition council went after SIA Veiksme, claiming that: 1) since it is (and was at the time when the infringement decision was passed) one undertaking with the company that was fined (although it was never an addressee of the infringement decision or part of the administrative case, thus, having no procedural rights); and 2) it had taken over the assets of the fined company ... it was therefore obliged to pay the fine."

S&D persuaded the Riga Administrative District Court that the Competition Authority's order had no solid legal grounds and violated procedural rules, and on June 5, 2014 the Court declared the fine illegitimate and repealed the order.

The S&D team on the matter consisted of Bukele and Partner Andrejs Gulajevs. 

 

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