Competition Authority orders waste collection firm to cut fees
The Competition Authority (Konkurentsiamet) has issued a directive that requires a private sector garbage disposal firm to reduce its service charges, which the authority says are too high.
The services concern the removal of garbage and containers over distances over 10 meters, as provided by Eesti Keskkonnateenused AS.
Kristin Truus, a legal expert with the Competition Authority, said that market-leading firms must ensure their service prices are reasonably in proportion to costs incurred in providing their services.
"Setting and enforcing unfairly high charges is unacceptable under competition law," Truus said.
Eesti Keskkonnateenused AS must comply with the directive by October 31.
The order affects waste collection service pricing in several municipalities, including the towns of Loksa and Maardu, both east of Tallinn.
The other municipalities, up and down the country, are: Kiili, Kuusalu, Raasiku (all in Harju County), Haljala (Lääne-Viru County), Elva, Kastre and Nõo (all in Tartu County), Antsla and Rõuge (both Võru County), Põhja-Sakala (Viljandi County), Häädemeeste, Põhja-Pärnumaa (including the Halinga area) and Saarde (all in Pärnu County), Kehtna (Rapla County) and the island of Muhu.
The Competition Authority found during an oversight review that Eesti Keskkonnateenused AS' prices for additional services significantly exceeded justified costs and what could be considered a reasonable profit margin.
The authority found that the company included unrelated costs in its service prices, such as potential lost revenues.
Eesti Keskkonnateenused AS has in response filed a complaint with the first-tier administrative court, which seeks to annul the directive. The company has also requested interim legal protection, to suspend the enforcement of the directive until a final court ruling is made.
The Competition Authority oversees marketplace competition, in energy, utilities, postal services, and transportation, including railways, aviation, and ports.
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Editor: Andrew Whyte, Aleksander Krjukov