31.03.2025 | Austrian competition authority
The Austrian competition authority, known as the Federal Competition Authority, has initiated proceedings against six construction companies for their participation in illegal price-fixing agreements and information exchanges concerning public and private tenders in the Burgenland region. These actions are part of a broader violation affecting the entire Austrian territory, aimed at reducing competition and securing market shares among the involved firms.
The companies engaged in these anticompetitive practices by submitting cover bids, which were designed to ensure that contracts were awarded to a predetermined bidder, often not one of the involved companies. This strategy allowed the companies to conserve resources for bid preparation and secure future invitations from the contracting authority.
Despite the varying degrees of involvement, all six companies were considered secondary participants due to the lesser intensity and limited geographical and temporal scope of their actions. They cooperated with the Federal Competition Authority outside of the leniency program, providing comprehensive acknowledgments in the proceedings before the competition court.
As a result, the Federal Competition Authority has requested reduced fines, taking into account their secondary involvement, smaller company sizes, and respective economic capabilities. The proposed fines include EUR 26,000 for Eibel, EUR 115,000 for GS-Bau, EUR 45,000 for Kienzl, EUR 90,000 for Neumayer, EUR 495,000 for Pfnier, and EUR 140,000 for Schwartz-Bau.
The uncovered cartel primarily affects the construction industry and involves numerous projects across both public and private sectors. Investigations by the Federal Competition Authority are ongoing, with some cases already concluded. The collusion among the companies included price agreements, market divisions, and exchanges of sensitive competitive information, all aimed at securing contracts and maintaining capacity utilization.
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