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Competition Authority Approves Lindström's Proposal on Contract Terms

11.06.2024 | 🇪🇪 Estonian competition authority

The Competition Authority approved a proposal by Lindström to amend contract terms regarding rental services, following a scrutiny over excessively long termination periods.


The Competition Authority conducted a supervisory procedure against Lindström regarding the excessively long termination periods of rental services and approved the company's proposal to shorten these periods as a compromise.

The Authority examined whether Lindström's rental terms for workwear and mats could restrict competition, particularly focusing on the difficulty for consumers to switch service providers in case of long termination periods, potentially hindering entry and operation of other rental service providers in the Estonian market.

After analysis, the Authority preliminarily concluded that Lindström holds a dominant position in the market for workwear and mat rental services, emphasizing the obligation of dominant entities not to abuse their position, which could lead to fines of up to €400,000.

Lindström proposed to the Authority to amend the termination conditions of rental agreements, committing to shorter notice periods as a compromise to eliminate competition restrictions. The Authority found that Lindström's commitments would address the competition issues, thus closing the supervisory procedure against the company.

The Competition Authority highlighted the preference for businesses to resolve competition issues through administrative procedures, as Lindström agreed to fulfill the obligations imposed by the Authority, leading to the conclusion of the investigation.

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