ACM imposes cartel fines for distorting a civil-engineering tender procedure

The Netherlands Authority for Consumers and Markets (ACM) has imposed cartel fines on contractors who distorted a municipal tender procedure. This concerns a municipal tender procedure in the civil-engineering sector. Three Dutch companies were involved in the illegal arrangement: Bouwhuis, Timmerhuis, and Van Gelder. The companies involved coordinated their bid prices, and thus determined who would win the contract.

Martijn Snoep, Chairman of the Board of ACM, adds: “Companies must bid in tender procedures independently of others. Price-fixing agreements as well as arrangements about who will win a contract are illegal and harm clients. This results in the government, and ultimately taxpayers, paying too much. It’s worrying that this conduct is still taking place in the construction sector. ACM takes action wherever this happens, and calls on companies to come clean. It’s good that the companies involved have acknowledged the violation, and have cooperated with a simplified resolution of the case.”

Companies agreed on the winner and prices in advance

ACM has previously imposed fines on companies that distorted competition in tender procedures in the construction sector. Companies that participate in tender procedures must draw up their offers independently of others. It is not allowed to make arrangements between one another or exchange information regarding participation in the tender, prices, or terms. Such arrangements restrict competition, and result in clients receiving less-competitive offers. This often leads to higher prices for clients, including government organizations. In such cases, taxpayers end up footing the bill.

Cooperation with a simplified procedure

The amounts of the fines were determined on the basis of the contract price of the tender, which is 153,250 euros. The three companies have cooperated with a simplified procedure, and each of them has acknowledged the violation. In exchange, they received reductions to their fines. Timmerhuis, as the eventual winner of the contract, has received a fine of 30,000 euros. Bouwhuis has received a fine of 15,500 euros. Van Gelder will not be fined. This company was the first one to report the illegal arrangements to ACM, which made the investigation possible. This is called leniency.

Report your participation in a cartel and avoid a fine

Companies that have made illegal arrangements, and want to come clean can report their involvement to ACM and submit a leniency request. The first company that reports its involvement in a cartel can avoid a fine entirely. Companies that are involved in the same cartel and report their involvement later and subsequently cooperate can receive a reduction of the fine.

Submit a tip-off

If you have any indications that a company is violating the competition rules, please report it to ACM. You can do so by visiting this page: Filing a report with ACM (in Dutch). You can also submit your tip-off anonymously.

See also

• 17-11-2025 ACM conducts dawn raids at contracting companies following municipal tender process
• 21-12-2018 Simplified resolution can avoid protracted legal proceedings
• Reporting your participation in a cartel: applying for leniency
• Recognizing distortion of competition by cartels (in Dutch)
• Competing within the rules (in Dutch)