The Competition Council has issued guidelines on joint bidding in procurement processes, warning against the misuse of joint bids to conceal cartel agreements among market participants. While joint bidding can enhance competition, using it for cartel activities violates Competition Law.

Businesses must understand the boundaries between permissible cooperation and potential law violations when submitting joint bids. It is crucial to ensure that joint bids comply with competition regulations to avoid penalties, especially concerning prohibited agreements that aim to hinder competition.

Competition law advisors play a vital role in assessing if participants in joint bids could qualify individually for tenders, ensuring fair competition and preventing negative impacts on pricing and quality. Collaboration should be limited to the specific procurement and not extend to sensitive information exchange or unjustified competition restrictions.

Market participants should only share necessary information for joint bids and contract execution, limiting recipients to those who need to know. Joint bidding is allowed under certain conditions, such as improving product quality and benefiting consumers, but must not eliminate competition in significant market segments.

Advisors should ensure that collaborations are efficient and do not unduly restrict competition. Businesses capable of individually qualifying for procurements should participate separately unless specific criteria are met, following guidelines to prevent market division and comply with competition regulations.

Competition law advisors should stay updated on legal cases related to competition law violations in Latvia, including cartel activities in the construction sector and breaches in public procurement for road construction projects. Understanding these cases is essential for businesses in these sectors to avoid violations and penalties.