Judgment of the Supreme Court of the Republic of Latvia in the case of KIA Auto AS and TKM Grupp AS

Core Viewpoint - The Supreme Court of Latvia upheld the decision of the Administrative Regional Court, confirming a fine of EUR 135 thousand imposed on KIA Auto AS for competition law violations, with TKM Grupp AS jointly liable for EUR 95 thousand, marking the end of the legal proceedings [1][4]. Group 1: Legal Proceedings - The case began in August 2014 when the Latvian Competition Council imposed a fine on TKM Grupp AS and KIA Auto AS for alleged competition law violations related to warranty conditions requiring KIA car owners to use authorized service centers and original spare parts [2]. - After years of litigation, the Supreme Court referred the case back to the Administrative Regional Court in December 2021 for re-examination, emphasizing the need for a thorough analysis of the alleged anti-competitive conduct [3]. - The Regional Court upheld the Competition Council's decision on June 4, 2025, despite extensive evidence provided by KIA Auto AS and TKM Grupp AS, leading to an appeal to the Supreme Court [3]. Group 2: Supreme Court Findings - The Supreme Court concluded that the Regional Court's assessment aligned with the guidance from the Court of Justice of the European Union, establishing significant potential anti-competitive effects without needing to identify actual consequences [4]. - The Court noted that the 100% shareholding of TKM Grupp AS over KIA Auto AS creates a presumption of decisive influence over the subsidiary's conduct, which contributed to the dismissal of the cassation appeals [4].