Shopping centres approach the Competition Council with a request to eliminate the situation distorting competition in retail trade
The Alliance of Real Estate Developers has sent an application to the Competition Council on behalf of Latvian shopping centres, asking it to evaluate the regulations of the Cabinet of Ministers for limiting the spread of Covid-19 infection. The application explains that the existing norms directly affect and restrict competition, allowing merchants to operate freely outside shopping centres, but excluding both retailers and landlords in shopping centres from the market. The existing restrictions are disproportionate and epidemiologically unjustified, and as a result, not only entrepreneurs, but also all Latvian consumers may suffer both in the short and long term.
In the application, the Alliance of Real Estate Developers (NĪAA) draws attention to the regulations of the Cabinet of Ministers, which set several restrictions on the activities of retailers in shopping centres (buildings with a total sales area of at least 1500 m2 and where at least five merchants or service providers operate in separate points of sale). Only merchants of certain product groups are allowed to operate in such buildings, but there is no similar ban for retailers established outside large shopping centres. Such circumstances, according to the NĪAA, create unequal competition between retailers and essentially exclude landlords in shopping centres from the market. In addition, such restrictions also increase the presence of shoppers in the stores that are open, as they concentrate all shoppers, including those who would have gone to large shopping centres.
“There is no objective and reasonable reason as to why retailers inside and outside of shopping centres are regulated differently. It is possible to provide an epidemiologically safe environment for customers in both larger and smaller retail outlets - we have clearly proven this by conducting CO2 level measurements in the premises of shopping centres together with researchers from Riga Stradins University. They have demonstrated very good air quality, proving that shopping centres are a safe place from an epidemiological point of view. Nevertheless, they are still denied the opportunity to fully resume operations, thereby distorting competition in the sector and giving a disproportionate advantage to merchants outside shopping centres: they continue to operate in a less competitive environment and may increase their prices as demand for certain products grows. As a result, both in the short and long term, the consumer may suffer, as their options will decrease and prices will increase,” Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers, points out in the application.
Air quality measurements have been performed by researchers from the Laboratory of Hygiene and Occupational Diseases of Riga Stradins University from 15 April to 20 April this year. They confirm that retail in large shopping centres with good air ventilation facilities is epidemiologically safe. Measurements of carbon dioxide (CO2) levels in shopping centres range from 395 to 690 ppm - the lower the CO2 level, the higher the air quality. This proves that shopping centres are a safe place to shop and should therefore be allowed to work in accordance with epidemiological requirements, and the restriction of competition on the grounds of public health is absolutely unjustified in this case, the application states.
UK researchers (Environmental and Modelling group) have concluded that ventilation is one of the most important factors influencing the spread of Covid-19 virus among people who are in the same room and within a distance of 2 metres.[1] Measurements of carbon dioxide (CO2) levels can be used as an indicator of poor air ventilation - British researchers say that indoor CO2 levels should be kept at least below 800 ppm, which corresponds to a good air quality rating, excellent air quality is around 400 ppm, which is mainly found outdoors (the lower the CO2 level, the higher the air quality).
About the NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players of the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner on a state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
For further information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv
In the application, the Alliance of Real Estate Developers (NĪAA) draws attention to the regulations of the Cabinet of Ministers, which set several restrictions on the activities of retailers in shopping centres (buildings with a total sales area of at least 1500 m2 and where at least five merchants or service providers operate in separate points of sale). Only merchants of certain product groups are allowed to operate in such buildings, but there is no similar ban for retailers established outside large shopping centres. Such circumstances, according to the NĪAA, create unequal competition between retailers and essentially exclude landlords in shopping centres from the market. In addition, such restrictions also increase the presence of shoppers in the stores that are open, as they concentrate all shoppers, including those who would have gone to large shopping centres.
“There is no objective and reasonable reason as to why retailers inside and outside of shopping centres are regulated differently. It is possible to provide an epidemiologically safe environment for customers in both larger and smaller retail outlets - we have clearly proven this by conducting CO2 level measurements in the premises of shopping centres together with researchers from Riga Stradins University. They have demonstrated very good air quality, proving that shopping centres are a safe place from an epidemiological point of view. Nevertheless, they are still denied the opportunity to fully resume operations, thereby distorting competition in the sector and giving a disproportionate advantage to merchants outside shopping centres: they continue to operate in a less competitive environment and may increase their prices as demand for certain products grows. As a result, both in the short and long term, the consumer may suffer, as their options will decrease and prices will increase,” Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers, points out in the application.
Air quality measurements have been performed by researchers from the Laboratory of Hygiene and Occupational Diseases of Riga Stradins University from 15 April to 20 April this year. They confirm that retail in large shopping centres with good air ventilation facilities is epidemiologically safe. Measurements of carbon dioxide (CO2) levels in shopping centres range from 395 to 690 ppm - the lower the CO2 level, the higher the air quality. This proves that shopping centres are a safe place to shop and should therefore be allowed to work in accordance with epidemiological requirements, and the restriction of competition on the grounds of public health is absolutely unjustified in this case, the application states.
UK researchers (Environmental and Modelling group) have concluded that ventilation is one of the most important factors influencing the spread of Covid-19 virus among people who are in the same room and within a distance of 2 metres.[1] Measurements of carbon dioxide (CO2) levels can be used as an indicator of poor air ventilation - British researchers say that indoor CO2 levels should be kept at least below 800 ppm, which corresponds to a good air quality rating, excellent air quality is around 400 ppm, which is mainly found outdoors (the lower the CO2 level, the higher the air quality).
About the NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players of the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner on a state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
For further information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv
[1] A study on the role of ventilation in controlling the spread of Covid-19 virus has been carried out by a group of researchers from the Environmental Modelling and Monitoring Group. The study was published by the UK's Scientific Advisory Group for Emergencies, which provides scientific and technical advice to support government decision-makers in emergencies. More about the study: https://www.gov.uk/government/publications/emg-role-of-ventilation-in-controlling-sars-cov-2-transmission-30-september-2020