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Ellex Klavins Successful for JCDecaux Latvia on Placement of Advertising on Public Transportation Stops

Ellex Klavins Successful for JCDecaux Latvia on Placement of Advertising on Public Transportation Stops

Latvia
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Ellex Klavins has successfully represented JCDecaux Latvia before the Latvian Competition Council in a matter regarding the placement of outdoor advertising on public transportation stops.

According to Ellex, "during the course of proceedings, the Competition Council (CC) concluded that Rigas Satiksme (the main provider of public transport services in Riga) had leased public transport stops to the company Pilsetas Linijas, on the condition that a number of them would be rebuilt. PL transferred this right further to our client JCDecaux, which, after the reconstruction of the transportation stops, was going to return them to RS at no additional charge. After assessing the terms of the contract, the CC identified certain points that they considered to potentially limit competition over a longer period of time: the long term of the contract; the 'reservation' of advertising rights for all future and potential RS transportation stops; [and the] automatic renewal of the contract. After evaluating JCD's investment in the construction of the public transport stops, the CC concluded that they were objectively justified in relation to the specific contract. All three companies involved in the case submitted a written commitment to change certain clauses of the agreement, thereby eliminating the potential negative effects on the market. Consequently, the case has been successfully terminated without the imposition of any fines, and the change in the specific clauses has removed the CC's concerns about a breach of the Competition Law."

JCDecaux Latvia was represented in the matter by Ellex Klavins Partner Liga Merwin and Senior Associates Maris Brizgo and Martins Gailis.