Latvia's Ministry of Economics is introducing amendments to the Competition Law to establish liability for company executives in cases of antitrust violations, particularly for prohibited agreements. This move is expected to enhance executives' motivation to actively prevent violations and cooperate with the Competition Council.

Interested parties are invited to provide feedback on the proposed amendments by November 25. The Ministry has also submitted the draft law for interinstitutional coordination.

Currently, under existing regulations, liability for antitrust violations, including the most serious ones like abuse of dominance and prohibited agreements, falls on the company (legal entity) itself, with fines of up to 10% of the company's last financial year's net turnover.

Company executives play a crucial role in preventing antitrust violations. They are responsible for implementing and maintaining proper control and monitoring systems within the company, as well as fostering appropriate corporate culture and employee education. Therefore, the Ministry suggests adding a new section to the law to hold company executives accountable for prohibited agreements, with liability to be enforced through administrative proceedings.

The proposed amendments also call for the Competition Council to assess the liability of company executives for antitrust violations related to prohibited agreements. Additionally, the Council would be granted new powers to temporarily restrict an executive from holding management positions in any company, serving as a general deterrent for others.

Feedback from OECD member states suggests that holding only companies accountable for violations may not be sufficient in terms of prevention. Extending liability to responsible individuals would incentivize company executives and employees to refrain from unlawful activities, thereby increasing the level of prevention.