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Arnas Keserauskas, president of the Competition Council. Photo by Vladimir Ivanovo (V)
High fines and their inevitability should deter companies from cartel agreements, and the agreement between the State Tax Inspectorate (STI) and AB Panevio statybos trestas (PST) to pay a million fines in 8 years is of no interest public, create the Competition Council.
Arnas Keserauskas, head of the Competition Council, highlights that the payment of fines to PST within a period of 8 years will not cause major inconveniences to companies, so not only will the main objective of imposing a fine be achieved, but also to deter companies to violate them.
Deferring the payment of fines and wages for such a long period essentially requires the state to provide a private company with 10 million euros. 8-year interest-free loan in euros. The regular payment of fines in small amounts becomes a similar rental payment rather than a penalty for a dangerous infraction. Furthermore, such an unusually long delay in paying fines and wages can be considered state aid, so such a postponement may need to be agreed with the European Commission, he said. Keserauskas.
According to him, paying a fine should be painful for the sanctioned company and should have such negative consequences that it does not infringe the competition rules in the future.
If the STI and the bailiffs decide to allow other entities to impose fines imposed by the Competition Council in the absence of exceptional circumstances, as a real threat to the continuity of the company’s activities, then the fines would miss one of the main objectives of deterring. other infringements and ultimately ordinary consumers and mons running honestly, says the Competition Council comment.
In the opinion of the Competition Council, the schedule for the fine and the payment of fees proposed by the PST was not based on the company’s financial documents, and the long-term suspension of the fine does not serve the public interest. These and other arguments of the institution were included in the rateVMI.
PST announces today that it has agreed with the STI 8.5 million. Eur fines and 1.1 million. The salary payment in euros is for 8 years.
PST and its competitor Irdaiva were only the most dangerous infringements of the cartel, where, as recognized by both courts, the Competition Council imposed fines of adequate size. We understand that it is not economically profitable for a company to pay fines and wages, but when considering PST’s request to assign the amounts payable in installments, in our opinion, it was necessary to assess the sanction and deterrent function of the fines imposed in the public interest, Keserauskas says.
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