On September 16, 2024, the Federal Competition Authority (BWB) filed a request for a fine against Malaschofsky with the Cartel Court, which was granted on November 25, 2024. The ruling is now final.

Malaschofsky was found to have participated in illegal price-fixing agreements, market divisions, and information exchanges with competitors regarding public and private tenders in the civil engineering sector in Lower Austria from at least February 2003 to May 2017. These actions are part of a broader violation affecting the entire Austrian territory, with varying degrees of involvement from different companies.

Malaschofsky cooperated with the BWB outside of the leniency program, providing a comprehensive acknowledgment of the facts for the Cartel Court proceedings. As a result, the BWB requested a reduced fine, which was assessed considering the economic capacity of the company.

The uncovered cartel primarily impacts the construction industry, particularly road construction, and involves numerous public and private projects across Austria. Investigations by the BWB are ongoing, with some cases already concluded.

During the violations, participating companies made agreements to assist each other in securing contracts, thereby maintaining market shares and ensuring capacity utilization. This included price-fixing, market allocation, and the exchange of sensitive competitive information, such as coordination on future bidding behavior and the formation of illegal bidding alliances.

Agreements included determining the winning bidder, setting prices, and establishing 'cover bids' to ensure certain competitors did not submit offers.

Further information and developments regarding the construction cartel can be found in the FAQ Baukartell Update January 2025.

According to the Cartel Act, practices that hinder or distort competition, such as price-fixing or market allocation, are prohibited. The Cartel Court can impose fines of up to 10% of the total revenue from the previous business year for confirmed violations, taking into account the severity and duration of the infringement, the culpability, economic capacity, and cooperation of the involved company.