Attorney-at-law Sandor Elias represented a client in a significant dispute in the Supreme Court in administrative matter 3-20-924. In its judgment of 4 November 2020, the Supreme Court found that contrary to the understanding that has taken hold in the current judicial practice, not every tender below its cost price is prohibited. The Supreme Court found that cross-subsidisation with non-contractual revenue is not prohibited, unless separately forbidden by the law applicable in the field or the terms and conditions of the public procurement. However, a tender below its cost price is unacceptable, for example, if it distorts competition, foremost if the tenderer were to thereby abuse its dominant position by freezing out its competitors from the market. In conclusion, the decision of the Supreme Court is significant in shaping the future of the public procurement landscape. First, it brings the logic of public procurements and of private market closer together as a tender below its cost price is also not always prohibited in the usual relationship between entrepreneurs. Secondly, it inevitably places a somewhat higher administrative burden on contracting authorities.
Major Assignments - Competition Law
TRINITI advised the largest Estonian new generation film production company Nafta Films in an insurance matter during the making of their spy thriller O2. The leading male actor Priit Võigemast injured his ankle during the shooting of the film in Finland which brought along changes to the shooting timetable and extra costs. TRINITI attorneys-at-law Tõnis Tamme ja Klen Laus advised the client and later also had an opportunity to participate as extras in some of the scenes of the movie.
TRINITI advised the restructuring of Estonian Air in relation to the European Commission potentially reclaiming state aid, including participating in discussions at the Directorate-General for Competition concerning Estonian Air
TRINTI assisted Port of Tallinn in its dispute with the local branch of the Finnish fuel company, Neste Eesti AS, over alleged dominant market position
TRINITI advised Tallinna Kaubamaja Group (leading OMX listed Baltic retailer) in connection with the merger control proceedings arising from the acquisition of AS ABC King, a leading shoe retailer operating in Estonia and Latvia
TRINITI successfully represented Société BIC, a known international producer of disposable products, in several cases regarding the infringement of the trademark owner’s rights. In the cases, the Lithuanian courts assessed whether the trademarks used by the defendants were confusingly similar to the registered three-dimensional trademark of the Bic pen, more specifically the Bic Cristal. The courts satisfied the claims and decided that the defendant shall cover the losses of SOCIETE BIC to compensate for the infringement of the trademark owner’s rights and unfair competition, and also ruled to remove the infringing goods from the market
TRINITI successfully represented Tallinna Sadama Elektrivõrk (the electric grid operator in the Port of Tallinn) in proceedings with the Estonian Competition Authority concerning a dispute over approval of connection charges under the Electricity Market Act
TRINITI represented the client Pirmoji kava, a leading events organizing company, in a dispute against the Lithuanian Competition Council. The dispute arose when members of the Association of Events Organizers agreed to charge every purchasing organization a starting-fee so that their ideas and concepts disclosed over the public procurement could be protected. The Lithuanian Competition Council fined the claimant for participating in a cartel organized by and through the Association of Events Organizers
TRINITI provided the Estonian Central Union of Home Owners, an organization representing more than 38,000 home owners, with a legal opinion on the competence of the Estonian Competition Board to review the pricing of Tallinn Water, a dominant water services provider in the capital of Estonia
TRINITI represented Compensa Life Vienna Insurance Group, one of the leading international insurance companies in Europe, in the acquisition of brokerage company UAB Finsaltas. TRINITI prepared a comprehensive due diligence report, share purchase agreement, assisted the client during negotiations and closing the deal and prepared the relevant documents for the concentration notification for the Competition Council