On Thursday, July 28, Vilnius Regional Administrative Court ruled that the fine amounting to LTL 32 million for breaches of the competition legislation was imposed on AB Mazeikiu Nafta (the Company) unreasonably. The court found that the Company had not breached the Law on Competition. AB Mazeikiu Nafta paid the thirty-two million litas fine in the early 2006.

“The laws require paying the fine even if you do not agree with it. If the court’s decision favorable to the Company is not appealed, the paid amount will be refunded,” – explained Rosvaldas Gorbaèiovas, the Company’s representative.

The Competition Council may appeal the court’s decision within 14 days. Mazeikiu Nafta was subjected to the fine of LTL 32 million by the Competition Council in 2005. The Council decided that the Company had breached the Law on Competition and the European Community competition law.

The decision to impose the fine was based on the results of the investigation, which had been conducted for approximately eighteen months. The investigation results showed that Mazeikiu Nafta abused its dominant position, by selling petroleum products in Lithuania at prices higher than in other Baltic countries. The Competition Council obligated Mazeikiu Nafta to discontinue such actions.

The largest fine ever imposed on a Lithuanian company for breaches of the Law on Competition was levied considering the fact that it was the first time when Mazeikiu Nafta violated the European competition regulations – the fine in such case amounted to one per cent of the Company’s annual turnover.