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Fatima Shahid

Hungarian Competition Authority Highlights Role of Bidders in Uncovering Cartels

25.02.2025 | Hungarian competition authority

The president of the Hungarian Competition Authority emphasized the crucial role of bidders in identifying procurement cartels during a recent conference in Debrecen.


On February 26, 2025, Rigó Csaba Balázs, the president of the Hungarian Competition Authority (GVH), delivered a presentation at the Hajdú-Bihar County Chamber of Commerce and Industry's 'Public Procurement and Competition Conference' in Debrecen. He discussed the importance of responsible bidder behavior in the identification and investigation of procurement cartels, stating that signals sent to the GVH could lead to the uncovering of cartels affecting multiple procurements, potentially preventing billions in damages to the public interest.

During his presentation, Balázs outlined the foundational aspects of the GVH's competition oversight activities and highlighted the characteristics of various types of cartels, particularly procurement cartels. He stressed that cartel agreements ultimately harm consumer welfare, leading to higher prices, a narrower range of products, and lower quality, which negatively impacts both consumers and the state.

In 2024, the GVH was involved in 19 competition oversight procedures related to cartel agreements, concluding three major cartel cases and initiating eight new ones. The ongoing cartel investigations examined over 1,500 tenders, with more than 1,000 involving the use of public funds. Balázs also mentioned a procurement cartel involving road salt distributors that was closed in early 2024, resulting in fines for six companies, and a railway cartel uncovered in December 2024, which led to fines exceeding 1.2 billion forints.

Balázs emphasized the importance of responsible bidder behavior, advising that bidders who identify potential anti-competitive agreements should first contact the national competition authority before excluding suspected companies from tenders. This approach helps prevent the destruction of evidence related to the alleged violations.

In recent years, the GVH has uncovered several cartel agreements initiated by signals from bidders, including the Baja construction cartel and the Danube shipping cartel dismantled in 2023. The GVH has published a guide titled 'Suspicious Cartel in Public Procurement?' to assist in recognizing suspicious signs and understanding appropriate actions, which is available on the authority's website.

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