Speed camera software supplier is sent a fine

According to the KP, the company was aware that it was the only possible cooperation partner for the provision of photo radar software, therefore it set a markup in procurements that exceeded the manufacturer's prices by almost 40 times.

The KP found that excessive prices for speed camera software licences were applied between September 1, 2022 and July 29, 2023.

During the infringement period, only Burde BV was able to provide the distribution of licences for 'Gatso' speed cameras in the territory of Latvia. The case established that the CSDD had purchased 100 "Gatso RT4" speed cameras, the operation of which can only be ensured in conjunction with software licenses from the speed camera manufacturer - "Sensys Gatso Netherlands BV", which allow recording speed limit violations. To ensure continuous operation of the speed cameras, they must be regularly updated.

But with Burde BV the only local company able to supply the necessary licenses and updates, they essentially had the CSDD over a barrel and proceeded to take advantage accordingly, according to the KP, which found that license prices increased significantly and rapidly in a short period of time - from 75 euros per month in August 2022 to 125 euros in September 2022 and to 270 euros in January 2023, which represents a total increase of 260% in six months.

Such a price increase could not be explained by external factors such as inflation, an increase in Burde BV's own costs, innovations, or other objective circumstances. Consequently, the KP concluded that the markup charged by Burde BV significantly exceeded an economically justified level.

Comparing the manufacturer's price and the price offered in CSDD procurements, the CP found that the markup set by "Burde BV" 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 ruled that the company abused its dominant position by setting prices that significantly exceeded an economically justified level and has imposed a fine of 24,199.25 euros on Burde BV.