On 12 May 2016, the Parliament of Latvia adopted changes to its competition law (including merger control). The amendments abolish the existing market share threshold (of 40%) and reduce turnover thresholds, which are now triggered if:
- the parties’ combined domestic turnover is at least EUR 30 million (down from EUR 35.5 million) AND
- domestic turnover of each of at least two parties is at least EUR 1.5 million (down from EUR 2.1 million).
The competition authority will also have a right to require notification up to 12 months after closing (even if thresholds are not met) where:
- the parties' combined market share exceeds 40% in the relevant market; AND
- there is a reasonable suspicion that the transaction will result in the creation or strengthening of a dominant position, or that competition will be significantly reduced in the relevant market.
Parties may choose to voluntarily notify if they are concerned the authority will require a post-closing notification.
Fines for failure to notify / unauthorized completion are up to 3% of a party's annual turnover. It is not yet known whether worldwide or domestic turnover is taken into account.
The changes will come into force on 15 June 2016.