Speed camera software supplier fined for unfair markups in Latvia

As indicated by the KP, the company had realised that it was the only possible partner for the provision of speed camera software, so it set a markup in the procurement that exceeded the manufacturer's prices by as much as 40 times.

The KP found that the excessive prices for speed camera software licenses were applied during the period from September 1st, 2022, to July 29th, 2023.

The case found that the CSDD purchased 100 Gatso RT4 speed cameras, which can only operate in conjunction with software licenses from the speed camera manufacturer, Sensys Gatso Netherlands B.V., which allow speed limit violations to be recorded. To ensure the continuous operation of the speed cameras, they must be regularly updated.

During the period of the violation, only Burde B.V. was able to distribute these licenses in Latvia. However, the speed camera manufacturer Gatso does not unilaterally set the final price of the licenses, thus giving license distributors the freedom to set the price paid by the end user.

The KP found that license prices had increased significantly and rapidly over a short period of time – from €75 per month in August 2022 to €125 in September 2022 and €270 in January 2023, representing a total increase of 260% in six months. Such a price increase could not be explained by inflation, increased license costs, innovations, or other objective circumstances.

Consequently, the KP concluded that Burde B.V.'s markup significantly exceeded the economically justified level. Comparing the manufacturer's price and the price offered in CSDD procurements, the KP found that the markup set by Burde B.V. in the fall of 2022 was approximately 20 times higher, while in 2023 it was as much as 30 and almost 40 times higher.

The KP imposed a fine of EUR 24,199.25 on Burde B.V.