ACM conducts dawn raids at contracting companies following municipal tender process
Summary
- ACM is conducting an investigation into possible illegal bid-rigging activities by three contracting companies in a municipal tender process.
- Secret price-fixing agreements between businesses in tender processes distort competition, and lead to higher prices.
- If it turns out that the contracting companies have indeed concluded illegal agreements, ACM may impose a fine.
The Netherlands Authority of Consumers and Markets (ACM) is conducting an investigation into possible illegal bid-rigging activities by three contracting companies in a municipal tender process. These three contracting companies are active in the civil-engineering sector. ACM has received serious indications that these contracting companies allegedly coordinated their bids. That is not allowed as it distorts competition, and leads to the government (and ultimately taxpayers) paying too much for contracts.
ACM investigates whether interactions have indeed taken place between the contracting companies involved prior to the award of the tender, and whether they concluded price-fixing agreements or whether they shared contracts. The contracting companies are required to cooperate with investigations.
Distortion of competition in tender processes
If businesses participate in tender processes, they must draw up their bids independently of others. Secret price-fixing agreements between businesses in tender processes distort competition, and lead to higher prices. The competition rules prohibit any agreements that distort competition.
Next steps
ACM has conducted unannounced dawn raids, requested information, and, in the coming months, will investigate whether the competition rules have indeed been violated. One of the possible outcomes is that ACM concludes that the law has not been violated. However, if ACM does come to the conclusion that the law has been violated, ACM can impose sanctions, for example, a fine. Fines can be as high as 10 percent of a company’s annual turnover.
ACM calls on market participants and local governments to remain on the look-out for indications of possible coordination in tender processes.
Submit a tip-off
If you have any indications that a business is violating the competition rules, please file a report with ACM. You can also submit tip-offs anonymously.
Report your cartel
Do you want to report to ACM that the business you’re working for is or was involved in a cartel? If you report your participation in a cartel, you may receive a fine reduction or you may even escape a fine altogether. This is called applying for leniency. To do so, you may contact ACM’s leniency office.
See also
- Reporting your participation in a cartel: applying for leniency | ACM
- Recognizing distortion of competition by cartels | ACM (in Dutch)
- Don’t pay too much. Do you notice arrangements between businesses on contracts? Report them to ACM (in Dutch)
- Competing within the rules | ACM (in Dutch)