REPUBLIC OF LITHUANIA                                     
                            Chapter 1                                           
                       General Provisions                                       
     Article 1. Objectives                                                      
     1. This  Law shall  regulate the  relations which arise from               
activities   of economic  entities, officials  representing them,               
and bodies  of State   authority  or  government  which  restrict               
competition or  compete unfairly  in the commodity markets of the               
Republic of  Lithuania, as  shall also  define the responsibility               
for these  activities if  they violate  the    interests  of  the               
consumers or the economy.                                                       
     This  Law   shall  apply  to  the  regulation  of  relations               
throughout the   territory  of the  Republic of  Lithuania  which               
result  from   competition-restricting     activities  or  unfair               
competition, with  the exception of relations  regulated by other               
     Article 2. Basic Definitions                                               
     Definitions of concepts used in this Law:                                  
     "Economic entities"  - legal  and natural persons engaged in               
commercial-economic   activity, regardless  of its character, the               
form of property or the  type of enterprise;                                    
     "Goods" -  the  result  of  activity,  i.e.  production  and               
service meant  for realization;                                                 
     "Market" -  the  aggregate  of  certain  goods  involved  in               
purchase-sale   processes on  the  territory  and  parts  of  the               
Republic whose  qualities,   use and price are compared in such a               
way that  producers and  consumers   can substitute  one for  the               
other in the process of manufacturing and  consumption;                         
     "Competition" - emulation during which economic entities, by               
acting   independently in  the  market,  restrict  one  another's               
abilities to  attain   a dominant  position in  that market,  and               
promote the  production and   increase the effectiveness of goods               
necessary to consumers;                                                         
     "Dominant position"  - the position of an economic entity in               
the market   which allows for the possibility to unilaterally and               
decisively influence   that market. The economic entity cannot be               
considered to  have a  dominant   position if its market share of               
certain goods is no more than 40 per  cent;                                     
     "Market concentration"  - the merger of two or more economic               
entities   or the acquisition by one economic entity of the right               
to have  either   all or  part of  the total  capital of  another               
economic entity  at its   disposal,  as well as the conclusion of               
contracts which  have influence  over the managing decisions made               
by one  of the  economic entities,    due  to  which  a  dominant               
position  in   the  market   is  attained  and  competition    is               
                            Chapter 2                                           
              Activities which Restrict Competition                             
     Article 3. Prohibition of Abusing the Dominant Position                    
     1.  Activities   of  economic  entities  having  a  dominant               
position  in   the     market  which  restrict  or  may  restrict               
competition  by   infringing  economic     interests   shall   be               
     2. Economic  entities shall  be prohibited  from engaging in               
the following  activities which restrict competition:                           
     1) creating  hindrances for  competing economic  entities to               
enter the   market  or  to  develop  the  activities  of  already               
existing ones;                                                                  
     2) abusing  the dominant  position  by  excluding  competing               
economic entities  from the market;                                             
     3) restricting  production, decreasing  the amount  of sales               
and purchase  of goods, or suspending trade with the intention to               
create a  shortage   in the  market or  to influence  prices, and               
consequently harming the  consumers;                                            
     4)  anticipating   discriminating  economic   conditions  in               
contracts of  an identical nature with different partners; and                  
     5) establishing  fixed selling  prices to  third persons  in               
contracts  with suppliers or purchasers.                                        
     Article 4. Prohibition of Agreements (Coordinated                          
               Activities) between Economic Entities which                      
               Restrict or Impede Competition                                   
     Agreements  or   coordinated  activities  between  competing               
economic entities  (or potential competitors) shall be prohibited               
if they restrict or  impede competition. Considered as such shall               
be agreements and coordinated  activities concerning:                           
     1)  prices  (including  those  established  by  auctions  or               
tenders), discounts,  markups and other payments;                               
     2) volume of production;                                                   
     3)  division   of  the   market  according   to  territorial               
principle, volume  of sales and purchases, types of goods, groups               
of purchasers and sellers,  or otherwise;                                       
     4) restriction  of other economic entities from being ousted               
from or  entering into the market (or part of it); and                          
     5) refusal  to conclude  a contract  with certain sellers or               
     Article 5. Exceptions to Prohibited Activities                             
     The activities  enumerated in  Articles 3  and 4 of this Law               
may be  considered   to be  in agreement  with the  Law if  it is               
proved that they result in:                                                     
     1) steady reduction of consumer prices; or                                 
     2) improvement of the quality of goods.                                    
     Article 6. Prohibition of Bodies of State Authority                        
               and Government from Restricting Competition                      
     Bodies of state authority and government shall be prohibited               
from   adopting standard  acts or  carrying out  activities which               
restrict the  independence of economic entities or the conclusion               
of  economic   contracts,      which   impede   the   foundation,               
reorganization or  restructuring of  existing  economic entities,               
or which  grant privileges  to or discriminate separate  economic               
entities, or which otherwise restrict competition.                              
     Heads of  bodies of  state authority and government shall be               
prohibited  from taking up commercial-economic activities, owning               
personal enterprises,  or holding positions in managing bodies of               
economic entities.                                                              
                            Chapter 3                                           
                       Unfair Competition                                       
     Article 7. Prohibition of Activities of Unfair Competition                 
     Economic entities  shall be prohibited from carrying out the               
following  activities of unfair competition:                                    
     1) the  propagation of  misleading, inaccurate  or distorted               
information   (including advertisements)  which may cause another               
economic entity  or its reputation to suffer;                                   
     2) the  misleading of  consumers through  false  information               
regarding     the  quality   of  goods,  the  characteristics  of               
utilization, the  place  and manner of production, and the amount               
and price of sale;                                                              
     3) the  willful use  of the  name, product  name, trademark,               
marking,   or form  of product packaging or appearance of another               
economic entity;  and                                                           
     4) the  acquisition, use  and publishing  without consent of               
information   concerning the industrial and commercial activities               
and the  scientific-technical   investigations and  results of an               
economic entity.                                                                
                            Chapter 4                                           
    Control of Activities which are Unfair or which Restrict                    
     Article 8. The Institution of Price and Competition                        
     The functions  of supervision  of observance  of this Law as               
well as  the Law on Prices within the Republic of Lithuania shall               
be executed   by  the Institution  of Price  and Competition, the               
director of which  shall be appointed by the Government.                        
     The Competition  Council shall  be formed to adopt decisions               
related   to issues of prices and competition within the scope of               
this Law.  The Competition Council shall consist of 7 members who               
shall be  appointed   by the Government for a term of 3 years. At               
least 4  of the  members   shall be appointed taking into account               
the  recommendations  of  consumer,    scientific,  business  and               
industrial organizations,  and the others  shall be assigned from               
the Institution  of Price  and Competition.    The    Competition               
Council shall  adopt decisions related to the application  of the               
Law  by  a  2/3  majority  vote.  The  regulations  of  both  the               
Competition  Council and the Institution of Price and Competition               
shall be approved  by the Government.                                           
     With the  aim of protecting the economy and consumer rights,               
the Institution   of  Price and  Competition  shall  observe  the               
situation in the market  and fluctuations of market prices, shall               
accumulate information  concerning    possibilities  for  meeting               
consumer needs,  shall periodically  provide   recommendations to               
the Government  on the  formation of  price policies,   and shall               
perform other functions established in its regulations.                         
     The Institution  of Price  and Competition  shall  have  the               
right to  obtain   information from  both economic  entities  and               
managing bodies  as well   as  explanations -  oral or  written -               
which are  necessary to  carry out   the functions established in               
this Law and in the regulations of the  Institution.                            
     Article 9. Powers of the Institution of Price and                          
     The Institution  of Price and Competition, upon establishing               
that economic   entities  or managing  bodies have  violated this               
Law, shall  compile  material concerning the issue and present it               
to the  Competition Council   for  the adoption of a decision. On               
the basis of the Competition Council's  decision, the Institution               
of Price  and Competition  may seek  the termination   of illegal               
practices through negotiations with the economic entity,  if they               
have  resulted   in  minor  negative  changes  (decrease  in  the               
efficiency   of production and distribution of goods, restriction               
of free  trade)  and provided that circumstances do not object to               
negotiation.   Upon  reaching an agreement, its results and terms               
for the  termination of   illegal practices shall be concluded in               
     In other  cases or  if an  agreement is  not reached through               
negotiation,   the Institution  of Price  and Competition has the               
right to:                                                                       
     1) obligate  economic entities  to terminate  agreements and               
practices  which violate this Law;                                              
     2) adopt  a decision  to  lower  the  prices  if  they  have               
increased as  a consequence of practices prohibited in this Law;                
     3) obligate  that illegal  use of a company name, trademark,               
product   marking or  inaccurate indication of a product's origin               
be terminated,   and may detain goods due to those infringements;               
     4) apply  to either the Government of Lithuania or the court               
to terminate   illegal  practices of managing bodies or to repeal               
adopted decisions.                                                              
                            Chapter 5                                           
    Protection of Competition in the Process of Concentration                   
                      of Market Structures                                      
     Article 10.  Control of the Concentration of Market                        
     If by  virtue of  agreement or  acquisition of a controlling               
interest     the  maximum   concentration  of  market  structures               
(concentration  of   capital),    which  is  established  by  the               
Competition Council,  is exceeded, the  party or parties involved               
in the  concentration must  notify the  Institution  of Price and               
Competition before  undertaking any  steps which  may alter   the               
permanent market structure and degree of its concentration.                     
     The Institution  of Price  and Competition,  upon  receiving               
notification   from the  interested  economic  entities  about  a               
planned  concentration    of  market  structures,  must  adopt  a               
decision concerning the granting  of permission within one month.               
     Upon an  agreement between the parties, the deadline for the               
adoption  of the decision may be extended, but for no longer than               
9 months.                                                                       
     If within  the indicated  periods of time the Institution of               
Price and   Competition  does not  make a  decision, the economic               
entities shall   acquire  the right  to  carry  out  the  planned               
concentration of market  structures.                                            
     Article 11. Permitted and Prohibited Concentrations                        
               of Market Structures                                             
     Upon the  execution of  a concentration of market structures               
which was   not  announced in advance and for which permission of               
the Institution   of  Price  and  Competition  was  not  granted,               
economic sanctions prescribed  by Article 12 of this Law shall be               
     Permission to  concentrate market  structures which  has not               
been approved  by the Institution of Price and Competition may be               
granted by  the   written  decision  of  the  Government  of  the               
Republic of  Lithuania. Such   permission  may be  granted if the               
parties involved  in the  concentration   provide  substantiation               
proving that this action will result in the  increase of economic               
efficiency of  production or  competitiveness of    goods,  which               
cannot be  achieved in  any ways  other  than  by  the  suggested               
concentration of market structures.                                             
                            Chapter 6                                           
            Responsibility for Violations of the Law                            
     Article 12. Consequences of Violating the Law                              
     Decisions  of  the  bodies  of  State  government  regarding               
violations of  the Law may be appealed to the court.                            
     Economic entities, having violated this Law, must:                         
     1) execute  the instructions of the Institution of Price and               
Competition   to discontinue the activities, restore the previous               
situation, terminate   or  alter the agreement, and fulfill other               
     2) recover the losses incurred by a partner; and                           
     3) fulfill  the sanctions imposed by the Competition Council               
as provided  by this Law.                                                       
     The Competition Council shall have the right to:                           
     1) impose  fines comprising  up to  10 per cent of the total               
annual gross   income  on economic  entities for  infringement of               
Articles 3,  4, 7,   10  and 11 of this Law, nonobservance of the               
agreement concerning  the   termination of  illegal practices, or               
intentional failure  or untimely  compliance with obligations and               
     2) impose  fines amounting  up to  3 per  cent of the annual               
gross income   on  economic entities for submission of misleading               
information; and                                                                
     3) impose  fines equaling up to 3 months average earnings on               
officers  of bodies of State government and economic entities for               
the  intentional     failure  or  untimely  compliance  with  the               
directions issued by the Institution  of Price and Competition as               
prescribed  by  this  Law,  or  for  submission    of  misleading               
     Article 13. Exaction of Fines                                              
     Fines shall  be transferred  to the  State budget within one               
month of   the  date that the economic entity or officer receives               
the decision   of  the Institution  of Price  and Competition  to               
impose a fine.                                                                  
     A fine  shall be  exacted from  the income  of  an  economic               
entity without  suit.                                                           
     Article 14. Appeal against Decisions of the Institution                    
               of Price and Competition                                         
     Economic entities,  managing bodies and officers may, within               
one month   of  the date the decision of the Institution of Price               
and Competition   is  received, apply  to the  court to revoke or               
alter the said decision  and recover losses.                                    
     Appeals to  the court  shall  not  suspend  compliance  with               
directions   and  decisions  of  the  Institution  of  Price  and               
Competition unless  the court stipulates otherwise.                             
     Decisions of  the Institution  of Price  and Competition and               
their motives  shall be publicly announced.                                     
     Article 15. Procedure for Recovering Losses                                
     Losses incurred  by economic  entities or  consumers due  to               
violation   of this  Law must be compensated for in the procedure               
established by  law.                                                            
     Losses incurred  by economic  entities due to decisions made               
by bodies   of  State authority and government or the Institution               
of Price  and  Competition which violate the requirements of this               
Law shall be compensated  with the funds of either the respective               
bodies of  government or  the   State budget,  and shall later be               
exacted from the violators.                                                     
     Losses shall be exacted by suit.                                           
VYTAUTAS LANDSBERGIS                                                            
Supreme Council                                                                 
Republic of Lithuania                                                           
15 September 1992