2001/504/EC: Decision No 5/2001 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, of 25 April 2001 adopting the necessary rules for the implementation of Article 64(1)(i), (1)(ii) and (2) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part
Date: 2001-04-25
Institutions: EC–Latvia Association Council
Subjects: European Association Agreement, Latvia, competition policy, merger control

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II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 5/2001 OF THE ASSOCIATION COUNCIL BETWEEN THE EUROPEAN COMMUNI-
TIES AND THEIR MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF LATVIA, OF
THE OTHER PART,

adopting the necessary rules for the implementation of Article 64(1)(i), (1)(ii) and (2) of the Europe
Agreement establishing an association between the European Communities and their Member
States, of the one part, and the Republic of Latvia, of the other part

of 25 April 2001

(2001/504/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an asso-
ciation between the European Communities and their Member
States, of the one part, and the Republic of Latvia, of the other
part, signed on 12 June 1995, and in particular Article 64(3)
thereof,

Whereas pursuant to Article 64(3) of the Europe Agreement
the necessary rules for the implementation of Article 64(1) and
(2) thereof should be adopted by the Association Council,

HAS DECIDED AS FOLLOWS:

Article 1

The necessary rules implementing Article 64(1)(i), (1)(ii) and (2)
of the Europe Agreement establishing an association between
the European Communities and their Member States, of the

one part, and the Republic of Latvia, of the other part, as set
out in the Annex to this Decision, are hereby adopted.

Article 2

This Decision shall be published in the Official Journal of the
European Communities and Latvijas Vestnesis (Latvian Official
Journal).

This Decision shall enter into force on the day of its adoption.

Article 3

Done at Brussels, 25 April 2001.

For the Association Council

The President

I. BĒRZIŅŠ

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ANNEX

IMPLEMENTING RULES FOR COMPETITION PROVISIONS APPLICABLE TO UNDERTAKINGS

Implementing rules for the application of the competition provisions applicable to undertakings provided
for in Article 64(1)(i), (1)(ii) and (2) of the Europe Agreement establishing an association between the
European Communities and their Member States, of the one part, and the Republic of Latvia, of the other
part

Article 1

General principle

Cases relating to agreements between undertakings, decisions by associations of undertakings and concerted
practices between undertakings which have as their object or effect the prevention, restriction or distortion
of competition as well as to abuses of a dominant position in the territories of the Community or of Latvia
as a whole or in a substantial part thereof, which may affect trade between the Community and Latvia shall
be settled according to the principles contained in Article 64(1) and (2) of the Europe Agreement.

For this purpose, these cases are dealt with by the Commission of the European Communities (DG IV) on
the Community side and the Latvian Competition Authority on the Latvian side.

The competences of the EC Commission and the Latvian Competition Authority to deal with these cases
shall flow from the existing rules of the respective legislation of the Community and Latvia, including
where these rules are applied to undertakings located outside the respective territory.

Both authorities shall settle the cases in accordance with their own substantive rules, and having regard to
the provisions set out below. The relevant substantive rules of the authorities are the competition rules of
the Treaty establishing the European Community as well as those of the European Coal and Steel
Community Treaty including the competition-related secondary legislation, for the EC Commission and the
Latvian Competition Law and the relevant by-laws for the Latvian Competition Authority.

ECONOMIC ACTIVITIES UNDER THE EC TREATY

Article 2

Competence of both competition authorities

Cases under Article 64 of the Europe Agreement which may affect both the Community and the Latvian
market and which may fall under the competence of both competition authorities shall be dealt with by the
EC Commission and the Latvian Competition Authority, according to the rules under this Article.

2.1. N o t i f i c a t i o n

2.1.1. The competition authorities shall notify to each other those cases they are dealing with, which,
according to the general principle laid out in Article 1, appear to fall also under the competence of
the other authority.

2.1.2. This situation may arise in particular in cases concerning activities that:

— involve anti-competitive activities carried out in the other authority's territory,

— are relevant to enforcement activities of the other competition authority,

— involve remedies that would require or prohibit conduct in the other authority's territory.

2.1.3. Notification under this Article shall include sufficient information to permit an initial evaluation by
the recipient party of any effects on its interests. Copies of the notifications shall be submitted on a
regular basis to the Association Council.

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2.1.4. Notification shall be made in advance, as soon as possible and at the latest at the stage of an
investigation still far enough in advance of the adoption of a settlement or decision, so as to facilitate
comments or consultations and to enable the proceeding authority to take into account the other
authority's views, as well as to take such remedial actions it may find feasible under its own laws, in
order to deal with the case in question.

2.2.

C o n s u l t a t i o n a n d c o m i t y

Whenever the EC Commission or the Latvian Competition Authority consider that anti-competitive
activities carried out on the territory of the other authority are substantially affecting important
interests of the respective Party, it may request consultation with the other authority, or it may
request that the other Party's competition authority initiate any appropriate procedures with a view
to taking remedial action under its legislation on anti-competitive activities. This is without prejudice
to any action under the requesting Party's competition law and does not hamper the full freedom of
ultimate decision of the authority so addressed.

2.3.

F i n d i n g o f a n u n d e r s t a n d i n g

The competition authority so addressed shall give full and sympathetic consideration to such views
and factual materials as may be provided by the requesting authority and, in particular, to the nature
of the anti-competitive activities in question, the enterprises involved and the alleged harmful effects
on the important interests of the requesting Party.

Without prejudice to any of their rights or obligations, the competition authorities involved in
consultations under this Article shall endeavour to find a mutually acceptable solution in the light of
the respective important interests involved.

Article 3

Competence of one competition authority only

3.1.

3.2.

Cases falling under the exclusive competence of one competition authority, in accordance with the
principle laid down in Article 1, and which may affect important interests of the other Party, shall be
handled having regard to the provisions set out in Article 2, and taking account of the principles set
out below.

In particular, whenever one of the competition authorities undertakes an investigation or proceeding
in a case which is found to affect important interests of the other Party, the proceeding authority
shall notify this case to the other authority, without formal request by the latter.

Article 4

Request for information

Whenever the competition authority of a Party becomes aware of the fact that a case, falling also or only
under the competence of the other authority, appears to affect important interests of the first Party, it may
request information about this case from the proceeding authority.

The proceeding authority shall give sufficient information to the extent possible and at a stage of its
proceedings far enough in advance of the adoption of a decision or settlement to enable the requesting
authority's views to be taken into account.

Article 5

Secrecy and confidentiality of information

5.1. Having regard to Article 64(7) of the Europe Agreement, neither competition authority is required to
provide information to the other authority if disclosure of that information to the requesting
authority is prohibited by the law of the authority possessing the information, or would be
incompatible with important interests of the Party whose authority is in possession of the informa-
tion.

5.2.

Each authority agrees to maintain, to the fullest extent possible, the confidentiality of any informa-
tion provided to it in confidence by the other authority.

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Article 6

Block exemptions

In the application of Article 64 of the Europe Agreement as provided for in Articles 2 and 3 of these
implementing rules, the competition authorities shall ensure that the principles contained in the block
exemption regulations in force in the Community shall be applied in full. The Latvian Competition
Authority shall be informed of any procedure related to the adoption, abolition or modification of block
exemptions by the Community.

Where such block exemption regulations encounter serious objections on the Latvian side, and having
regard to the approximation of legislation as foreseen in the Europe Agreement, consultations shall take
place in the Association Council,

in accordance with the provisions contained in Article 9.

The same principles shall apply regarding other significant changes in the Community or Latvian
competition policies.

Article 7

Merger control

With regard to mergers which fall within Council Regulation (EEC) No 4064/89 of 21 December 1989 on
the control of concentrations between undertakings (1) and which have a significant impact on the Latvian
economy, the Latvian Competition Authority shall be entitled to express its view in the course of the
procedure, taking into account the time limits as provided for in the aforementioned Regulation. The EC
Commission shall give due consideration to that view, without prejudice to any action under the Parties
respective competition laws.

Article 8

Activities of minor importance

8.1. Anti-competitive activities whose effects on trade between the Parties or on competition are
negligible, do not fall under Article 64(1) of the Europe Agreement, and therefore, are not to be
treated under Articles 2 to 6 of the present implementing rules.

8.2. Negligible effects within the meaning of paragraph 8.1 are generally presumed to exist when:
— the aggregate annual turnover of the participating undertakings does not exceed ECU 200

million, and

— the goods or services which are the subject of the Agreement together with the participating
undertakings other goods or services which are considered by users to be equivalent in view of
their characteristics, price and intended use, do not represent more than 5 % of the total market
for such goods or services in the area of the common market affected by the Agreement and the
Latvian market affected by the Agreement.

Article 9

Association Council

9.1. Whenever the procedures provided for in Articles 2 and 3 above do not lead to a mutually
acceptable solution, as well as in other cases explicitly mentioned in the present implementing rules,
an exchange of views shall take place in the Association Council at the request of one Party within
three months following the request.

9.2.

Following this exchange of views, or after expiry of the period referred to in paragraph 9.1, the
Association Council may make appropriate recommendations for the settlement of these cases,
without prejudice to Article 64(6) of
the
Association Council may take into account any failure of the requested authority to give its point of
view to the requesting authority within the period referred to in Article 9.1.

In these recommendations,

the Europe Agreement.

9.3.

These procedures in the Association Council are without prejudice to any action under the respective
competition laws in force in the territory of the Parties.

(1) OJ L 395, 30.12.1989, p. 1. Regulation as last amended by Regulation (EC) No 1310/97 (OJ L 180, 9.7.1997, p. 1).

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Article 10

Negative conflict of competence

When both the EC Commission and the Latvian Competition Authority consider that neither of them is
competent to handle a case on the basis of their respective legislation an exchange of views shall take place
on request in the Association Council. The Community and the Republic of Latvia shall endeavour to find a
mutually acceptable solution in the light of the respective important interests involved with the support of
the Association Council, which may make appropriate recommendations, without prejudice to Article 64(6)
of the Europe Agreement, and the rights of individual Member States of the European Communities on the
basis of their competition rules.

ECONOMIC ACTIVITIES UNDER THE ECSC TREATY

Article 11

Treaty establishing the European Coal and Steel Community (ECSC)

The provisions contained in Articles 1 to 6 and 8 to 10 shall also apply with respect to the coal and steel
sector.

Article 12

Administrative Assistance (languages)

The EC Commission and the Latvian Competition Authority will provide for practical arrangements for
mutual assistance or any other appropriate solution concerning in particular the question of translations.