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The Competition Authority terminated the supervisory procedure regarding the contractual penalties of Worldwide Cargo Establishment

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The  Competition Authority  announced on  07.07.2022 that it  had terminated the
supervision  proceedings initiated  on the  basis of  the complaint filed by the
Worldwide  Cargo  Establishment  (hereinafter:  WCE) on 30.10.2019 regarding the
activities  of  AS  Tallinna  Sadam  (hereinafter:  Tallinn Sadam) pursuant to §
63(4) subsection  1 points 1 and  2 of the  Competition Act.  The purpose of the
monitoring procedure was to clarify whether Tallinna Sadam, when offering use of
infrastructure  at Muuga Harbour to WCE,  has the characteristics of a violation
of § 16 points 1 and 3 of the Competition Act. The Competition Authority did not
analyse  the  market  position  of  Tallinna  Sadam,  but  as  a  result  of the
supervision  procedure  still  came  to  the  conclusion  that the activities of
Tallinna Sadam, regardless of the market position of Tallinna Sadam, do not have
characteristics  of violation  of the  Competition Act  and the  company has not
significantly  harmed  competition,  i.e.  there  is  no threat of significantly
harming competition.

In  addition, there was  a civil litigation  between the parties  under the same
circumstances.  On 30 May  2018, WCE filed  a claim  with the Harju County Court
against  Tallinna  Sadam  requesting  that  the  minimum  cargo  volume  in  the
cooperation  agreement should  be reduced  retroactively from  2015 and that the
contractual  penalties paid for 2015-2017 in the amount of EUR 0.45 million plus
accrued interest should be repaid.

The action was dismissed by the decision of the Harju County Court on 19 January
2021. WCE  filed an  appeal with  the circuit  court and  on 22 October 2021 the
Tallinn  Circuit  Court  dismissed  the  appeal,  as  it  took the position that
Tallinna  Sadam does not  have a dominant  position in the  market and therefore
there  is no basis for the application of § 16 points 1 and 3 of the Competition
Act.  On 22 November 2021, WCE filed an appeal in cassation against the decision
of  the  Tallinn  Circuit  Court  with  the Supreme Court. On 11 April 2022, the
Supreme Court issued a ruling dismissing the appeal in cassation. On the day the
ruling  was made, the judgment of the  Tallinn Circuit Court of 22 October 2021
and the decision of the Harju County Court of 19 January 2021 entered into force
and the court dispute ended.

WCE  is a cargo operator of Tallinna Sadam, which owns a grain terminal in Muuga
Harbour  and handles grain.  According to the  long-term co-operation agreement,
WCE  has a minimum annual  cargo charge obligation, failing  which WCE shall pay
Tallinna  Sadam a penalty in the amount  of the difference between the mandatory
and the actual cargo charge.

Tallinna  Sadam is one of the largest cargo- and passenger port complexes in the
Baltic  Sea region, which  serves annually 10 million  passengers and 20 million
tons  of  cargo  in  average.  In  addition  to  passenger and freight services,
Tallinna  Sadam group also operates in  shipping business via its subsidiaries -
OÜ  TS  Laevad  provides  ferry  services  between the Estonian mainland and the
largest  islands, and OÜ TS Shipping charters its multifunctional vessel Botnica
for  icebreaking  and  construction  services  in  Estonia and offshore projects
abroad.  Tallinna Sadam  group is  also a  shareholder of  an associate AS Green
Marine,  which provides  waste management  services. The  group's sales in 2021
totalled  EUR 110 million,  adjusted EBITDA  EUR 54 million  and profit  EUR 26
million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

[email protected] (mailto:[email protected])