Souvenir shop owners say a local firm was pushed out of Riga Airport after dispute with commercial space operator

The owners of SIA Souvenirs I&N, Ivo Pelēkais and Nauris Macius, say local businesses are being squeezed out of Riga International Airport. Their company sold Latvian-made goods in the airport's C sector from 2009. After a long dispute with the operator of the airport's commercial space, the shop was closed and the company became insolvent; that process ended this year. The story was reported by Latvijas Avīze, based on company documents.

The lease chain

Until 2011 the company leased directly from the state-owned Riga International Airport. After that, the Turkish-French company group TAV Airports Holding took over management of commercial space, and Souvenirs I&N became a second-level sublessee. The company argues the chain inflated rent: it rose by nearly 100% in 2011 and stayed up to 50% higher than in 2010 in later years. It also claimed passenger flow in the restricted-access C sector was lower than elsewhere in the airport.

Competition Council findings

The Competition Council, Latvia's competition regulator, reviewed the contracts of the operator, AS Riga Airport Commercial Development (RACD), and found terms that restrict competition. RACD received commercially sensitive data from subtenants well beyond what was needed to monitor the agreements, which allowed price monitoring and copying of competitors' business models. In January 2018 the Council said the terms had been fixed through contract amendments, ended its supervision and did not open a case.

The company turned to the Council in June 2015 and supervision began in August. By then the company had already lost in court and was insolvent.

Closure of the shop

On 20 January 2015 RACD sent notice of contract termination, which the owners considered inconsistent with the contract. According to their letters, the shop was closed on 21 February and employee passes were suspended. The shop's property, including goods worth about 140,000 euros at retail value, was seized on 7 May 2015. On 12 January 2016 the Riga Regional Court ruled the bailiff's actions unlawful, but the shop was no longer operating.

The Corruption Prevention and Combating Bureau (KNAB) replied that it has no authority to interfere in how state or municipal bodies and companies organise their work.