Draft law amending the Competition Act and, in consequence, amending other laws (609 SE) - second reading
Session: 15th Riigikogu, 5th session, plenary sitting.
Date: 2025-06-10 15:48
Total Speeches: 71
Membership: 15
Agenda Duration: 1h 12m
AI Summaries: 71/71 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The discussion moved to agenda item three, which concerned the draft law 609 (second reading) amending the Competition Act, initiated by the Government of the Republic, and amending other laws connected with it. The presentation was given by the Minister of Justice and Digital Transformation, Liisa-Ly Pakosta. The draft law's core focus is the adoption of European Union competition law, including increasing fines, leniency measures, and enhanced powers for the Competition Authority. Significant attention has also been paid to the scope of the self-incrimination privilege and the judicial standards of proof, which are central to discussions related to European Union law. In cooperation with the Economic Affairs Committee and the Competition Authority, various amendment proposals have been developed, including clarifying wording, clarifying understanding, and regulating the transfer of evidence between administrative proceedings and minor offences proceedings. The second reading has brought a wider discussion to light concerning risks and benefits, emphasizing that the aim is to provide consumers with better services and fairer prices in a competitive situation. Different viewpoints from political parties and interest groups have been incorporated, and the alignment of requirements and changes has continued.
In summary, the discussion has focused on the draft law's sustainability within the context of European Union law, the diversity of case law and legal systems, and how competition-promoting measures can improve prices and the quality of services for consumers. There has been emphasis on ensuring speed and efficiency, while at the same time cautioning about the need to balance different procedures and fundamental rights.
Decisions Made 1
No decisions were made. A thorough discussion and an overview of proposed amendments took place during this session, but final votes or confirmations were omitted, and the draft continues in its work in the second reading.
Most Active Speaker
The most active speaker was Minister Liisa Pakosta (Eesti 200) during the second reading of the Riigikogu session. Her role involved fulfilling a leading position to answer questions and clarify the government's viewpoints; described as a government representative not leaning to the left or right, but with a political background within the Eesti 200 ranks (identified as party affiliation). Her focus is on "changes and harmonizations," and her responses centered on adopting directives, improving legal practice, and collaborating with the Competition Authority.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller announced the third item on today's agenda, which is the second reading of Draft Act 609, initiated by the Government of the Republic, concerning the amendment of the Competition Act and related amendments to other acts, and gave the floor to the presenter, Minister of Justice and Digital Affairs Liisa-Ly Pakosta.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The address by Liisa-Ly Pakosta, the Minister of Justice and Digital Affairs, focused on a draft bill that updates and clarifies the Estonian Competition Act in accordance with EU law, expands the privilege against self-incrimination, and modifies the role of the Competition Authority to achieve better and cheaper services for consumers through fairer competition.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller gives thanks, then invites Jaak Aab to take the floor and answer questions.
AI Summary
Jaak Aab inquires about how other EU member states have transposed the updated Competition Directive (most have done so via administrative procedure, while some have used civil courts). He stresses that the objective is not the directive per se, but effective competition and its proper oversight, and requests clarification on why we might face the risk of arbitrary action (or abuse of power) and why other nations have opted for alternative solutions.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The report notes that although the legal orders of the EU member states vary, administrative fines adopted in Estonia have been consolidated into a logical whole within misdemeanor proceedings, and this is made possible by the general reference to EU principles added to the first paragraph by Priit Pikamäe.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Riina Sikkut to speak.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut gave an ironic look and remarked that Eesti 200 has placed the adoption of the Competition Act on such a high priority that the government hasn't had another discussion of such importance in over two years. She then asked how such a bill, regardless of its specific wording, actually protects consumers and improves the competitive landscape.
Aseesimees Arvo Aller
AI Summary
This is a short, direct message that calls listeners to action: "Your time!"
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut asks whose business interests you are defending.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The report stresses that a quicker and less onerous solution has been selected to ease the burden on the courts. Crucially, any penalty must not be arbitrary; it must be grounded in the legal definition of the offense. Furthermore, Eesti 200 champions lower prices for consumers and robust competition. Working alongside the European Union, we are advancing mitigation strategies and enhanced cooperation with the Competition Authority, ensuring that companies focus on implementing necessary improvements for consumers rather than simply facing punishment.
Aseesimees Arvo Aller
AI Summary
The Vice-Chair calls upon Mario Kadastik to speak.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He/She asks how the directive's objective—the cross-border handling of competition cases and the transfer of evidence between states across different types of proceedings—functions in practice, and whether opposition from states could impede the exchange of evidence and provide grounds for the European Commission to assert that the directive has not been transposed.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
According to Liisa-Ly Pakosta, the Minister of Justice and Digital Affairs, the draft bill complies with European Union law. She specifies that evidence collected during administrative proceedings is transferable to competition supervision proceedings and must not be excluded from misdemeanor proceedings on formal grounds, although the court ultimately decides the admissibility of each piece of evidence. Furthermore, these amendments have been unanimously supported by the Economic Affairs Committee.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller asked Madis Kallas to take the floor.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
I am disappointed that a solution to this issue has not yet been found, and the expert assessment commissioned by the Economic Affairs Committee unequivocally demonstrates that conducting two separate procedures is more expensive, time-consuming, and complicated. I ask you once again to explain why this course of action is being pursued.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
According to Minister of Justice and Digital Affairs Liisa-Ly Pakosta, the draft bill protects the state's legal order and is not tied to anyone's economic interests. It was prepared by officials, maintains the administrative procedure under the principles of misdemeanor proceedings, and provides the Competition Authority with enhanced tools to quickly and fairly ensure competition.
Aseesimees Arvo Aller
AI Summary
The Deputy Chairman invites Ester Karuse to speak.
Ester Karuse
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ester Karuse notes that statistics show a very low rate of detection of competition infringements in Estonia, and asks the Minister whether competition is truly functioning or if the Competition Authority lacks adequate tools. She also asks how the draft bill prepared under her leadership would improve the situation if infringements must still be proven using multiple procedural methods.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The report emphasizes that the Competition Authority has sufficient tools for detecting violations, and although investigations may occasionally conclude that no violation has been committed, violations and subsequent penalties have been identified in the past, such as the vodka cartel. Furthermore, the draft bill complies with EU law and further strengthens the Authority.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller turns to Heljo Pikhof and asks her for something.
Heljo Pikhof
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Heljo Pikhof criticizes the model of parallel proceedings included in the draft bill, arguing that it significantly complicates the handling of competition infringements and questioning its compliance with EU law. She asks directly who will take responsibility and resign if Estonia is forced to pay fines in the future due to inadequate legislation.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Minister of Justice and Digital Affairs Liisa-Ly Pakosta confirms that the draft bill is in compliance with European Union law, that the parallel proceedings do not interfere with one another, and that the Competition Authority is conducting two separate procedures that can be advanced concurrently, allowing them to choose the fastest way to achieve a fair outcome.
Aseesimees Arvo Aller
AI Summary
This is a brief invitation for Anastassia Kovalenko-Kõlvart to the stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He notes that in criminal proceedings, one must not testify against oneself; this stems from Article 22 of the Constitution. However, the current draft bill leaves this right ambiguous and raises the question of whether it extends to legal persons, and whether, without this clarification, it would not conflict with the Constitution and the position of the Chancellor of Justice.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The report notes that the draft bill is somewhat unconventional because the issue remains unresolved and the specific solution is entrusted to the courts, relying on the conflicting positions of the European Court of Justice and the differing opinions of Estonian legal scholars. Furthermore, although the wording adheres to the directive, loose ends persist, a situation illustrated by analogies drawn from the tales of Kaval-Ants and Vanapagan.
Aseesimees Arvo Aller
AI Summary
This address is simply a request to invite Reili Rand to speak.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand points out that a significant portion of the bill's handling was spent on substantive work, referencing the previous version. Eesti 200 held out to prevent the bill from reaching the chamber, and it was only the change in the Reform Party's chairman that prompted a change of mind. She then asks whether, assuming responsibility is taken, they are prepared to introduce the original bill that the Social Democrats submitted today as an amendment proposal.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Estonia was supposed to adopt this directive in 2021. Although the draft legislation has been prepared based on existing practice and is expected to comply with European Union law, any necessary amendments will be made quickly should the Commission require them.
Aseesimees Toomas Kivimägi
AI Summary
This is simply an invitation for Riina Sikkut to speak.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut accuses the minister of ignoring consumer interests, highlighting problems with the draft collective representative action bill, consumer credit issues, and the growing workload of administrative courts. She emphasizes the need to move forward with the draft bills concerning the Consent Act, the Gender Equality and Equal Treatment Act, and the Competition Act, none of which have yet reached the floor of the chamber.
Aseesimees Toomas Kivimägi
AI Summary
It was a brief thank-you.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
The question asks how important this bill is to the listener.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Consumer credit disputes are still resolved in the county court. The directive's purpose is to strengthen the role of civil society organizations in advocating for consumer rights and to give them a clear legal basis for seeking funds. Moreover, more such associations should be encouraged in Estonia, given that the main impetus for the draft bill was infringement proceedings, and it had not been adopted by the beginning of 2021.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova accuses the minister of demagoguery and directly asks why he acts in the interests of monopolists, obstructs fair competition and the free market, and why Estonians pay significantly more for services and goods than in other EU countries, requesting clarification on how ordinary people benefit from this.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Speaker Toomas Kivimägi invited Züleyxa Izmailova to speak.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
He claims that the entire question is invalid, and the explanatory memorandum for the draft bill shows how the bill improves the situation for consumers.
Aseesimees Toomas Kivimägi
AI Summary
Tõnis Mölder is invited to speak at the beginning of the address.
Tõnis Mölder
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He thanks the chair of the session and the Minister, and notes that the amendments made between the first and second readings enhance the protection of fundamental rights for natural persons, and raises the question of whether legal persons are treated equally under the law.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The 36 proposals put forth by the working groups of the Ministry of Justice and Digital Affairs, along with the results of the discussions held by the Economic Affairs Committee, are based on thorough work. These proposals address fundamental rights issues and improve both the professional rights of attorneys and the protection of trade secrets outside of the proceedings conducted by the Competition Authority. Furthermore, the majority of these proposals rely on the Competition Authority’s own suggestions and have received widespread support within the Economic Affairs Committee during the preparation for the second reading.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi invites Jaak Aab to come and speak.
AI Summary
Jaak Aab emphasized that the proposals put forth by the Competition Authority could lead to a simple, clear, and transparent administrative procedure, and that the purpose of the fines is not to punish, but rather to encourage cooperation with businesses to eliminate violations. He also questioned why initial approval for the draft legislation had not been sought from the European Commission.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The Ministry of Justice and Digital Affairs requested an initial opinion on the draft bill, but it has not yet been received, and the European Commission is under no obligation to provide it. However, two former heads of the Competition Authority have clearly supported the draft bill, which is based on misdemeanor proceedings, and the current head confirms that the bill provides the means to protect the competitive environment in Estonia very effectively.
Aseesimees Toomas Kivimägi
AI Summary
This is a brief address where Deputy Speaker Toomas Kivimägi calls Lauri Läänemets to the stage.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets asks how the present law benefits the Estonian economy, pointing out that the length of administrative and criminal proceedings can lead to cases becoming time-barred, and that in some instances, it is not even worth initiating them. He also asks how this improves the competitive environment and specifically helps small businesses.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Liisa-Ly Pakosta explains that the minister’s appearance in the chamber is solely by order of the committee, not a personal wish, and that in Estonia, competition is better guaranteed in accordance with EU requirements, utilizing rapid tools and maximum statutes of limitation, which enable the Competition Authority to quickly protect consumers’ interests.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi found the minister’s participation in the second reading to be entirely positive and appropriate, given that the minister is the most knowledgeable person on the subject, and this would not worsen the situation. This is further supported by the committee chairman’s report and the yellow book.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets thanked the chair of the session, stating that while he had initially praised the minister, he pointed out that there was context and business interests behind the matter, and that Marek Reinaas might not be as well-informed as Liisa Pakosta.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi said that Marek must not be wronged and that Marek might be better informed about the topic, adding that his remark was rather a formal confirmation, after which Züleyxa Izmailova was invited to speak.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova asks how the Ministry of Justice ensures the effectiveness and relevance of the Competition Act to limit the influence of large market participants and protect small and medium-sized enterprises, consumers, and the sustainability of the Estonian business environment. Furthermore, she asks whether there are plans to analyze the implementation practice for improvement and to enhance prevention against collusive agreements and structural violations.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Pakosta confirms that she does not represent business interests, emphasizes the supremacy of European Union law, and promises a follow-up assessment of every legal act approximately three to five years after its passage. Furthermore, she calls on people to report violations of competition law to the Competition Authority, explaining that the agency operates independently and can only fulfill its duties more effectively with the help of these reports.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invites Raili Rand to speak.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand asked why the Competition Authority had reduced its capacity by making redundant the officials investigating cartel agreements. She questioned whether this was due to pressure from government budget cuts, what necessitated the change, what would happen to the ongoing proceedings, and how the draft legislation would affect the authority's overall capability and resource requirements.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Liisa-Ly Pakosta stressed that the Competition Authority operates independently and politicians do not direct its choices, but she personally would have acted differently and handled the layoffs differently. She further emphasized that the head of the authority is responsible and must personally explain why they made redundant the case handlers specifically and not other employees, and why additional clarification is needed regarding this matter in connection with criminal proceedings.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi calls upon Anti Allast.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas criticized the minister's approach, emphasizing that competition rules must apply in Estonia and consumers must have low prices, and asked why, in the case of administrative proceedings, the fine seems designed to avoid judicial review, even though it can be contested, and why this part was overlooked.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
In Estonia, all previous administrative fines have been transferred to the system of misdemeanor proceedings, and supported by the extensive practice of the county court, these proceedings are fast, legally unambiguous, and the outcomes are understandable. This increases legal certainty and is a hallmark of a good rule of law state.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invites Ester Karuse to speak.
Ester Karuse
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ester Karuse requested that members of the Riigikogu be provided with a specific breakdown of the size of the Competition Authority's budget cut for this year and subsequent years.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
Given the strained state budget situation, the expansion of the public sector must be curtailed, and defense spending must be increased. This must be achieved by utilizing digital tools, ensuring that cost savings do not diminish the quality of services but rather enhance it. We must follow the example of the Danish digital government and the direction set out in the coalition agreement, while simultaneously guaranteeing optimal service delivery and effective competition supervision.
Aseesimees Toomas Kivimägi
AI Summary
The Vice-Chair addresses Anti Allas and asks him to speak.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asks why the majority of European countries seek to penalize the parties involved in administrative proceedings as easily as possible, and requests an explanation regarding the background and reasons for this approach.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
He said that different countries have different types of proceedings, and their content and structure vary. Moreover, each country selects the system that is appropriate for it, and in many countries, there is simply no misdemeanor procedure like the one used in Estonia.
Aseesimees Toomas Kivimägi
AI Summary
The Vice-Chair called upon Madis Kallas to speak.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas asks why we couldn't just rely on administrative or criminal proceedings, and why we can't use just one solution.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
The Competition Authority has two tools: cooperation with undertakings to improve the consumer situation within the framework of non-punitive administrative proceedings, and, if necessary, a penalty or fine, which is determined by the court and can amount up to 10% of global turnover. Both tools may be used simultaneously or separately, with the goal of advancing consumer rights and encouraging cooperation among businesses.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invited Tiit Maran to speak.
Tiit Maran
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tiit Maran said that the law must serve many interests and no one should be unjustly punished, but the proceedings must be made as quick as possible to avoid endless court hearings, because multi-stage deliberation can hinder reaching a specific result when dealing with interests holding a monopolistic position.
Justiits- ja digiminister Liisa-Ly Pakosta
AI Summary
I agree with you that all businesses and consumers in Estonia deserve a fair competitive environment, and the procedure outlined in this draft legislation ensures the fastest possible handling for all cases, since administrative and misdemeanor proceedings, along with court processes, can run in parallel and do not make the supervision or punishment of one dependent on the other.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asked if anyone else besides Lauri Läänemets had questions for the minister, and he promised that if only one question remained, he would take responsibility for it himself so that the minister would have time to deal with other matters tomorrow.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets apologizes to the presiding officer of the session and announces that he must leave the committee because the Social Democrats' draft bill is on the agenda, and he needs to ask that question tomorrow.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi thanked his colleagues and announced that today's session was concluded.