SPIE Elektrovod and ASE Were Fined Almost CZK 34 Million for Public Procurement Cartel
The decision has not been appealed and is therefore final. The parties to the proceedings benefited from the leniency programme and the settlement procedure, for which their fines were reduced.
According to the findings of the Office, the competitors coordinated their participation and bids for three public contracts of the contracting authority ČEPS, a.s., which namely involved the award procedures "MIL – Repair of Switches by Replacement in the AD 03, 06 and 09 Field - Implementation"; "DAS - Replacement of DG (P.0473)" and "NOS - Replacement of Switch in the T402 Tertiary (G.0127)". The value of these contracts exceeded CZK 18 million.
The Office proved the anticompetitive conduct of both undertakings on the basis of the evidence of their phone, instant messaging and in-person communications. The undertakings coordinated their activities in tenders (bid rigging) and thus concluded a market division agreement and a price fixing agreement. These practices fall into the category of so-called hard-core cartels and constitute the most serious infringements of the Act on the Protection of Competition.
Both companies applied for the leniency and for the settlement procedure, for which their fines were significantly reduced to a total of CZK 32,498,000 for SPIE Elektrovod and CZK 1,419,000 for ASE. Thanks to the leniency and settlement applications, the undertakings also avoided the ban on the performance of public contracts, which may also be imposed by the Office for bid rigging cartels.
Press Unit of the Office
21/071 – S0377/2019
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